Property Investment Brisbane January 2024 – Brisbane, Queensland, is touting unprecedented capital growth, with a rise of over 50% since the pandemic’s start in March 2020, according to a new report by CoreLogic. This soaring growth corresponds with rising property values, ranking the capital third for the most expensive median dwelling value behind Canberra and Sydney.
For investors, Brisbane is the Holy Grail, offering abundant opportunities for profit while providing much-needed housing for the booming market. Where Melbourne saw a mediocre 11% climb in property values, Brisbane’s dwelling values skyrocketed from $187,000 below Melbourne to $7,000 above. The factors affecting Brisbane’s booming market values are the same reasons why it is the best capital city to invest in for 2024 and beyond.
1. High supply and low demand drive Brisbane investors
According to Eliza Owens, the Head of Residential Research Australia for CoreLogic, “Before the pandemic, Brisbane was oversupplied with dwellings and undersupplied with people – but that totally flipped.” Between 2021 and 2022, a population increase of 51,000 or around 20,000 households became one of the city’s largest migrations in recent history.
Pair those numbers with a meagre 17,500 added dwellings, and the beginnings of an emergent housing crisis become clear. Savvy investors with a keen eye for the shifting housing market can capitalise on this substantial imbalance by providing high-quality yet affordable dwellings for Brisbane’s growing population. Tied with the influx of residents migrating to Brisbane are the soaring housing costs, which alienate a large portion of incoming inhabitants.
The median dwelling value in the capital city has risen to $787,217, an unaffordable number for the fastest-growing demographic, single adults. These residents are searching for affordable and easy-to-maintain units, not single-family houses. For investors, meeting these needs offers an exciting and lucrative opportunity.
2. High yields and high social impact
Investors seeking to capitalise on Brisbane’s growing market have access to commercial returns on high social impact residential property. Utilising the High Yield Property Club’s proprietary Rooming House System, investors have access to done for you rooming house microdevelopments which may also produce a capital uplift once tenanted.
In the past, those looking to profit in Brisbane’s housing market relied on single-family homes; however, as referenced earlier, the influx of single adults created a shift in the market.
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3. Increased interstate migration
While the pandemic served as a catalyst for slowed growth in many Australian cities, remote work paired with extensive lockdown procedures in multiple locations caused Brisbane to thrive. Where the South East Queensland municipality lifted many restrictions, cities like Melbourne embraced extended lockdowns through October 2021. The result was an influx of people leaving areas like Victoria and moving to Brisbane.
ABS migration data reflects this exodus, showing a record-high net interstate migration totalling 51,500 to Queensland, while migration to Victoria was only around 20,000 during the same period. While the most recent migration statistics are at a state-wide level, the corresponding ABS population data shows a direct correlation between increased migration and Brisbane’s 2.3% population growth, more than twice as much as Melbourne.
As more Australians embrace remote work and migrate to Brisbane, the rental market will continue to grow and thrive. Providing quality housing will remain a paramount concern, curbing the growing housing shortage and making the case for eager investors seeking lucrative investment options.
4. A focus on infrastructure
The Brisbane City Council has partnered with Brisbane Move to overhaul the city’s infrastructure. The massive project involves the construction of a sustainable metro depot located at Rochedale and new underground tunnels for the fully electric metros to reduce city-wide congestion. It will also include upgrading existing stations, creating greener, more enhanced streetscapes, and shadier, more inviting public spaces
Once complete, these infrastructure advancements will improve traffic flow in Brisbane, making it more accessible and attractive. The focus on infrastructure development and improvement means good things for interested investors. The fresh look and feel will attract more residents who are eager to reside in a booming metropolis. Additionally, improved transportation makes surrounding neighbourhoods more accessible, extending rental opportunities beyond the city centre. Increased housing possibilities equate to greater short and long-term ROIs.
5. Hosting the 2032 Olympics
On July 21, 2021, the IOC announced that Brisbane will host the 2032 Olympic and Paralympic Games. Along with worldwide notoriety, this partnership will deliver a massive $8.1 billion economic boost, creating over 91,600 jobs, according to the KPMG. Queensland Premier Annastacia Palaszczuk says hosting the games “will put Queensland on the map for business investment globally, just as the 2000 Olympic games did for Sydney and NSW.”
However, despite the promised economic uplift, the influx of workers could spell disaster for the city, already plagued by a growing housing crisis. In preparation for this financial windfall, investors are jumping at the chance to build properties designed with the incoming population in mind. The social benefits of the games are clear: enhanced communities, improved social cohesion, upgraded infrastructure, reduced congestion, and more. However, without adequate housing, Brisbane will fail to reach the full possibilities the games provide.
Rooming House investors stand to benefit from the influx of residents, as each dwelling can house five tenants. By maximizing on space, Brisbane can provide quality housing to the workers who will call the city home.
As it grows, Brisbane promises to provide virtually unlimited opportunities to eager investors seeking to capitalize on the city’s unique housing market. An inpouring of residents coupled with limited housing has created a shortage that will only worsen with time. Investing in the Brisbane market now with The High Yield Property Club will help offset the growing population’s need for affordable housing while providing an unmatched 8% rental yield. There has never been a better time to partner with The High Yield Property Club and consider property investment Brisbane. Create a legacy for your family, and make a difference with high social impact property investing.