A lack of construction in Brisbane is tipped to be the driving force behind sustained gains for property investors, according to industry experts.
During a recent episode of The Smart Property Investment Show, Streamline Property Buyers’ Melinda and Scott Jennison explained the macro forces driving up the Brisbane property market.
The couple suggested record numbers of enthusiastic investors making “emotional purchases” are making it difficult for investors looking to snag a bargain.
“What we are seeing on the ground is record number of buyers which is being accelerated by low stocks and low vacancy rates,” Ms Jennison said.
“There’s been a big drive from owner-occupiers and we are seeing a lot of competition from those emotional buyers, with the buyers’ debt being phenomenal.
“We saw a slight uptick in sales volumes, but there are certainly still a lot of supply issues from the sales perspective.”
Mr Jennison agreed competition was one of the reasons why the property market will remain strong.
“We’ve been to some auctions where recently there were 29 registered bidders and 40–50 people at an open home,” Mr Jennison stated.
Not only did the couple predict buyer volumes to hold competition in the short term, they expect them to continue in the medium term while construction catches up with investors.
“Construction work is down 24 per cent on the decade average. That will continue on for a while because construction takes time to happen,” Mr Jennison said.
Finally, the couple suggested the good times could continue in Brisbane, as a number of large-scale investment in Brisbane drive the local economy.
“There’s a lot of things happening and also planned. Just a list of a few things that I’ve brought down here is the Queen’s Wharf project, $3.6 billion project. It’s currently under construction, opening in 2022, about 2,000 jobs during construction, about 8,000 once it’s operational. Cross river rail project, $5.4 billion for that project as well. Underground stations connecting Woolloongabba to the CBD,” Mr Jennison concluded.