Why investing in Brisbane is a sound strategy

 

Brisbane offers value and affordability for property investors with a high demand for quality properties, a growing population, a robust economy, and an attractive lifestyle. Over the past few decades, Brisbane investments have achieved strong and consistent capital growth with high rental yields. Brisbane investments offer promising opportunities for savvy and potential investors compared to Sydney and Melbourne’s lower-yielding and more expensive markets.

Why invest in Brisbane?

Rapid population growth from interstate migration

Brisbane’s allure as a work-from-home hub and its relative affordability compared to other capital cities has attracted many interstate buyers tired of the lack of housing affordability, traffic congestion and reduced lifestyle value. The population in Southeast Queensland is expected to increase to 5.44 million by 2041, up from approx. 3.64 million in 2021, with the greater Brisbane area forecast to grow by 40%.

Limited supply of new housing across Brisbane suburbs

Reducing new land releases and escalating construction costs have limited new residential housing development. According to data from the Queensland Government Statistician’s Office, building approvals have approached their lowest levels in over 20 years. The limited supply of new housing has placed additional pressure on existing properties, with demand for property outstripping supply and thus driving prices higher.

Brisbane house prices and relative affordability compared to other major cities

As one of the most affordable housing markets on the East Coast, according to CoreLogic data from November 2023, with a median house price of $860,465, the Brisbane property market presents an attractive option for investors seeking a balance of affordability and capital growth potential. Compared to Sydney and Melbourne, where the average house price was reported at $1,396,888 and $937,736, respectively, Brisbane investments offer an affordable entry point. The relative affordability is also creating further pressure and demand on the housing supply, which in turn is fuelling prices and future capital growth.

Planned and completed infrastructure

Infrastructure spending in the Southeast region of Queensland is reported to be the highest in Australia’s history. More than 25 billion dollars have been budgeted to be spent on planned infrastructure before 2031. With the upcoming Olympics, projects are expected to be accelerated.

Major infrastructure projects

Roma Street Station Upgrade ($2.1bn)

The Roma Street Station upgrade will connect passengers with the proposed Brisbane Metro and the existing suburban and interstate bus and rail networks. Coined the “Grand Central”, it will provide opportunities for new commercial and residential developments and upgrades to public spaces.

 

Queens Wharf Entertainment Centre ($3.6bn)

It is set to be a world-class integrated casino resort and retail centre that will put Brisbane on the map as a tourism, leisure and entertainment destination. The development is estimated to provide 8,000 new jobs and attract 1.39m visitors annually.

Eagle Street Pier and Waterfront Place Precinct ($2bn)

This iconic riverside location will transform Brisbane into a business and leisure destination. Providing new open spaces, amenities and a premier waterfront dining hub, it is anticipated to be a popular tourist destination.

Cross River Rail ($5.4bn)

The Cross River Rail will be a 10.2km rail line under the Brisbane River and CBD, including 5.9km of twin tunnels. This significant infrastructure development will enhance public transport, economic growth and thousands of new jobs.

Cross River Rail Project, Brisbane QLD

Completed urban renewal projects

Large Cruise Terminal ($177m) – completed 2020

The extensive cruise development has created supply chain opportunities for trade, tourism and local businesses. It is forecasted to triple the cruise industry over the coming 20 years, contributing $1.3bn annually to the Brisbane economy and supporting 3,750 jobs.

Brisbane Airport: Parallel Runway ($1.3bn) – completed 2020

Completed in 2020, the Brisbane Airport development doubled the airport’s capacity and continues to bring in $5bn per year to the local economy. It is forecast that by 2035, it will have provided 7,800 new jobs.

Brisbane Olympics 2032

The 2032 Olympic Games should provide $8.1bn in benefits to Queensland, including a $3.5bn increase in social improvements and $4.6bn in tourism. Government analysis predicts that the games will generate over 129,000 jobs in the region, primarily in the tourism, construction, and hospitality industries.

Lifestyle

Aside from the economic benefits, Brisbane’s subtropical climate and natural wonders offer an enviable and sought-after lifestyle. Boasting world-class educational facilities, diverse dining options, and cultural events, it’s close to the Sunshine Coast and the Gold Coast and other popular holiday destinations such as Moreton Bay and North Stradbroke Island. Desired for its lifestyle benefits and ease of living, properties in Brisbane are increasing in popularity, leading to higher rental prices and increased median property values.

Strong economy

Various industries, including finance, technology, tourism and education, support Brisbane’s diversified and robust economy. Brisbane’s most prominent sectors by the total size of workforce are:

Healthcare – 141,121 (13.1% higher than the national average)

Retail trade – 102,073 (9.5% higher than the national average)

Education – 98,667 (9.2% higher than the national average)

Unlike other regional centres, Brisbane’s stable and growing economy reduces the risk of economic downturns negatively affecting property values, providing a solid foundation for property investors. The continued and increasing demand for housing fuelled by diverse job opportunities will only increase the long-term viability of Brisbane real estate investments.

Proven market returns: rental yields and rental demand

A strong rental market equals reliable rental income. As of late November 2023, median weekly rents for houses in Brisbane were reported to be $619 and $504 for units, with a gross rental yield of 4.19%. Competition is intense among tenants, with record-low vacancy rates averaging less than 1% in most suburbs. The continued and increasing demand for rental properties is one of the contributing factors behind the rising rental returns; for those looking to build wealth through property, Brisbane investments offer an attractive financial outlook with increasing property values and robust rental income. Equally, Brisbane’s property market is averse to rising interest rates, with rental demand, migration inflow and low stock levels providing support.

What makes a good investment property in Brisbane?

Deciding where to buy and what makes a good investment property can be a challenge. While many properties in Brisbane would make a viable investment option, the type of property and and the right suburb will largely depend on your overall goals and financial position.

Through research, assessment and comparison against specific metrics, we help clients purchase the right investment property that matches their long-term investment strategy. Over the past four to five years, we have seen great results for investors in the Brisbane market. One asset class that has outperformed in Brisbane is purchasing land and developing in key suburbs within the greater Brisbane area, with consistent demand from owner-occupiers. Due to the limited supply of freestanding housing within a 15-30km radius of the CBD and the ongoing preservation of Koala habitats, less stock will be coming onto the market, which should see prices rise across growth suburbs.

Client Successes

House and land: Heathwood (30kms southwest of Brisbane CBD)
  • $600,0000 purchase in 2021 for 501sqm block and construction of brand new 4 bed, 2 bath, 2 car home
  • The property is now estimated to be worth between $935,000 and $980,000.
  • Currently renting for $720 per week
  • Over 50% capital growth in 3 years
  • Estimated yield of $3.82%
House and land: Ormiston (27kms east of Brisbane CBD)
  • Client paid $405,000 for the land in 2021
  • Our team oversaw the building of a new 4 bed, 2 bath, 2 car property
  • The property is now estimated to be worth $1,040,000
  • Rented originally at $600, now 900 a week
  • Estimated yield of 4.1% p.a.
Townhouse: Gaythorne (9ks northwest of Brisbane CBD)
  • Purchase of a 3 bed, 2 bath, 2 car townhouse in 2021 for $770,625
  • The property is now estimated to be worth around $1,020,000
  • 36% capital growth in 3 years
  • Currently rented for $650 per week
  • Estimated yield of 3.31% p.a.

Why now is an ideal time to invest in Brisbane

As one of the strongest capital city property markets, Brisbane offers savvy investors the opportunity for long-term growth and capital gains for several key reasons:

  • Historically low vacancy rates, increasing rental prices and a slowdown in construction reducing the supply of new housing has seen the demand for existing properties continue to rise.
  • There has been a growing trend toward medium-density housing, with townhouses in the inner and middle-ring suburbs offering a more affordable alternative to traditional housing without compromising space and location.
  • Houses in established suburbs remain in demand with an increasing number of families and professionals looking for larger, lifestyle properties.
  • Suburbs with transport accessibility, space and lifestyle features continue to offer capital growth and stable rental returns.
  • With interest rates predicted to fall over the next few years, bringing more buyers into the market, getting ahead now can allow you to take full advantage of the expected growth without the additional buyer demand. For 2025 alone the ANZ Bank has predicted a 5-7% property price rise in Brisbane.

How do we help people who want to invest in Brisbane property?

Our team takes the time to get to know you and understand what you hope to achieve. As experienced property investment advisors, we independently determine the top Brisbane suburbs and the type of property that aligns with your objectives and situation. Using our extensive network, we source suitable properties and assist with purchasing, development, financing and ongoing management and maintenance.

If you want to diversify your investment portfolio, explore why you should invest in Brisbane or are just starting your investment journey, contact our team today and speak to one of our experienced team members.




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