Brisbane market

Hi Kylie,

There are a few amazing opportunities in the Brisbane market at present, and of course now is a prime opportunity to get in as there are still quite a number of apprehensive people about the region. Fundamentally there are a few extraordinary x-factors that make the Brisbane market a prime target for investment right now and some of those are:

Redevelopment of the RNA show grounds in Fortitude Valley ($2.9 Bn redevelopment – currently in progress)

Proximity to the Brisbane CBD

Multi-national businesses moving from the Brisbane CBD to the inner fringe of the CBD (cheaper rents, and placing themselves in a position to capitalize on the gentrification of Bowen Hills/Fortitude Valley)

Upgrade of the East – West Arterial Road to the Airport reducing commute times to the airport from the Brisbane CBD significantly

5000 additional employees to be put on at the Brisbane Airport in the next 10 years

Upgrades and expansion of the Royal Brisbane & Womens Hospital – 7000 additional employees to be put on in the next 5 years

Infrastructure upgrades to inner city rail stations

An abundance of educational facilities (uni's & schools) within a 5km radius of the CBD

The price point of many units in the Brisbane CBD that enable SMSF investors to comfortably buy into the area as investors ($400,000 purchase allows a SMSF with $120,000 to buy in)

Strategically, I think Bowen Hills or Fortitude Valley are the best suburbs in that area to take advantage of these fundamentals over the next 5 to 10 years. The areas are perfectly located in relation to the RNA show ground redevelopment, proximity to the Brisbane CBD (1km), Proximity to all forms of transport (rail, bus and ferry), proximity to multitudes of employment, proximity to educational facilities and access to the airport. In fact you can't get into the Brisbane CBD without going through Bowen Hills and Fortitude Valley (if you are driving). Given that the airport will employ so many people in the coming decade, these areas will become prime targets for employees to reside.

From an investment perspective, the area is really a no-brainer over the long term (think Redfern in Sydney 10 years ago vs now).

Lastly, at present Fortitude Valley is currently considered an ugly duckling making it the perfect time to be buying in. Once the RNA development starts to come to fruition and people realize what amenities are available at their doorstep, the prices will move reasonably quickly. 

Brisbane isn't going anywhere soon. There's no economic driver to underpin any sort of meaningful resurgence. Performance will rotate closely around the mean.

Houses up units down for the time being.

There will be the odd hotspot as there always is and the occasional larger region within the city that will produce a few headlines for a while but in terms of medium to long term performance Brisbane is not likely to set the world on fire.

Previous growth spurts haven't shown to be sustainable and over all averages are anemic. Qld is largely a resource exporter. Given resource sector growth has now ceased and is trying to consolidate in slow growth over supplied markets all the economic pressure currently being exerted is negative. This shake out should peak around mid to late 2014. It's unlikely though that the LNP will be able to trigger alternative economic activity to replace the vacuum left behind by the resource sector contraction. That doesn't bode well for Qld in the short to medium term at least. 2015/16 could see quite tough conditions as federal and state governments try to keep growth above 2%.