Significant demand is set to be generated for Brisbane’s inner-city housing, according to property industry members.
With property development “given a huge boost” as lord mayor Graham Quirk announced last week that in the next ten years an extra 343,000 new jobs will be created in Brisbane, some are noting that this could be the start of an upturn.
Archers Body Corporate Management’s Michael Ryall said that developers should plan now to take advantage of this growth.
“With limited development sites in the CBD, we will see more high-density developments in fringe areas of the city like South Brisbane, Bowen Hills and Newstead,” Mr Ryall said.
Mr Ryall has noticed a number of trends evolving in CBD developments and said these will influence the type of properties being developed in Brisbane in the future.
“Transit-oriented-developments (TODs) are playing a big role in the design and location of new complexes and there are some great examples of TODs in areas of North America, Hong Kong and France.
“TODs will become more popular with increased workforce growth and a rise in international student numbers in the CBD, as they allow easy access to public transport and cut out the traffic,” he said.
He points to the best area for investors as those that have good “walkability”.
“There is a great deal of opportunity for developers to start capitalising on the demand, building smaller, more sustainable properties that will meet the needs of the new workforce.”
However, BIS Shrapnel’s recent Australian Housing Outlook 2012 – 2015 was not as positive about the Brisbane market’s public sector, but does note that growth is to be expected on the back of decent economic activity.
“The median house price is set to initially increase by a forecast 5 per cent over the year to June 2013 to $450,000,” the report states. However, this is attributed to private sector employment flowing from strong rises in mining investment.
A 19 per cent rise is expected over the three year period to June 2015.
The report explains that with the current lower interest rates and growing upgrader and first timer demand, “investors are expected to return to the market in larger numbers to capitalise on rental growth and the prospect for future capital gain.”
Hundreds of new jobs are expected through employers such as Qantas, whose multi-million dollar anouncement from CEO Alan Joyce yesterdaywas welcomed by premier Campbell Newman.
“I welcome today’s announcement by Qantas Chief Executive Alan Joyce that will see the investment of $30 million to upgrade Brisbane’s heavy engineering and maintenance facilities,” Mr Newman said.
“It is another vote of confidence in the economic future of the Queensland.
“Queensland is the traditional home of Qantas and this announcement demonstrates the important role the State will play in the long-term future of the airline.”