Residz Team 6 min read
“Watch out Melbourne and Sydney, Brisbane is very much on the rise.” - Bernard Salt.
Even before Brisbane was named as the winning 2032 Olympics venue, demographers like Bernard Salt were posting evidence of a bright future for the city. But with devastating floods and a sharp reversal of the housing market boom, sellers will be asking is it a good idea to sell now? and buyers will be asking Is it a good idea to buy now?
Here we share some interesting reasons we think it’s still a good time to buy quality property in Brisbane.
Home of the 2032 Olympics and Paralympics
As we know, the eyes of the world will be on Brisbane in 2032 and this means a decade of large and small improvements to transform Australia’s third largest city.
As for the 2000 Sydney Olympic Games, industrial land will become the main athletes' village, with a transformation of Northshore Hamilton. After the Games, the village will become diverse residential, comprising aged care, retirement living, social and affordable housing, key worker, hotel, build-to-rent and market accommodation. It’s a good mix of demographics that can only be positive for the city.
Diversity on the Olympics legacy committee
Odd as it sounds, the makeup of the Brisbane 2032 Olympic and Paralympic Games Legacy Committee with its diverse representation could be a great reason to have faith in the future of the city.
The committee includes student, disabled, indigenous, physical activity research, circular economy, regional advocacy, and innovation representation. If each voice is heard, these committee members may be able to ensure an inclusive and sustainable “legacy-led” approach to the Olympic planning that will drive benefits for the next 20 years and beyond.
Money flowing into state
No bad thing to have some money coming into your state. KPMG estimates $8.1 billion in direct economic benefits will flow to the QLD economy from the Olympics, and create 91,600 jobs over the next 20 years. Tourism is expected to increase substantially in the lead-up to, and post the Games.
By 2050, Brisbane’s population is predicted to almost double to 4.2 million people (Bernard Salt) Many of them will come from within Australia. During the pandemic, more than 30,000 people from other states of Australia decided to live and work in Queensland. The state recorded Australia’s highest net interstate migration figure in the year to March 2021 (a 28.2% increase). Many swapped Melbourne and Sydney for Brisbane and those who rented are staying. International visitors are returning, with 5000 long-term visitors arriving in Queensland in June.
Big Ideas: Inner city framework
As part of the lead-up to the Olympics, there’s a creative focus specifically on Brisbane’s inner city right now. People can vote on a whole raft of “Big Ideas” (until 25 September 2022) submitted to Brisbane City Council by design studios, university students and industry bodies around seven themes:
The Big Ideas imagine the possibilities of a vibrant and dynamic city, and while they’re only ideas at this stage, they include:
Greening the Queen St bridge (pictured), an extensive bougainvillaea-lined walking route, an indigenous eternal flame landmark, islands in the river (based on Little Island in New York), urban and riverside parks and walkways, urban agriculture, and bike paths, ‘Blue Brisbane’ (a flood and drought mitigation plan), a walking event over four days in a row, ways to bring life and connection to laneways, a moveable Olympic-standard pool floating in the Brisbane river, public art, a pedestrian link to the Gabba, a city art loop, weekend street closures for markets, parks in the heart of the CBD, removal of the Riverside expressway, lighting and projection artworks on the river, pedestrian malls, rooftop gardens on skyscrapers, revitalising underpasses, and inclusivity-design ideas.
If some of these wonderful ideas get built, it will have a flow-on effect on the value of homes in Brisbane.
Better flood preparedness
Brisbane is built on a floodplain, and in 2022 record-breaking floods led to a tragic loss of lives and 20,000 homes were impacted. While this is a major red flag for home buyers, they can take heart from the Brisbane City Council accepting recommendations from an independent flood inquiry.
A few initiatives include:
Plan Your Brisbane Game
In 2018, one in five households took part in a major planning consultation exercise from Brisbane City Council that included a Plan Your Brisbane game. Over 96,500 participants took up the challenge to accommodate 1000 people in a typical suburb while maximising greenspace, transport and liveability, while creating a city of neighbourhoods. This co-creation opportunity led to the Brisbane’s Future Blueprint based on eight principles:
There are dozens of actions that have been taken and many more are underway to realise the vision of the Brisbane community.
Liveability and friendliness
For home buyers wanting a good all-rounder, Brisbane is not a bad choice. A survey of residents in 2018 saw 68% of people saying ‘liveable and friendly’ was Brisbane’s greatest strength. 53% chose ‘Brisbane’s places and spaces’, 43% chose ‘clean, green, sustainable city’, and 34% chose ‘affordable lifestyle’. Lower numbers voted for ‘easy to get around’, ‘creative and cultural opportunities’, ‘jobs, education, and innovation’, or ‘other’.
New high-frequency bus network
It has its critics, but the costly, high-frequency network of battery electric buses due for completion in 2024 will reduce the need for cars to get people around Brisbane. The Brisbane Metro will initially service 19 stations and may be expanded.
Affordability and rental vacancy rates
With interest rates rising and borrowing capacity lowered, affordability is a major limiting factor for buyers.
Brisbane’s median dwelling value is $762,284, just over the national median dwelling value. Despite booming during 2021 and early 2022, Brisbane’s median price remains much cheaper than Sydney at $1,066,493 and a little cheaper than Melbourne which is $782,053. This figure represents the midpoint of the sold prices of both units and houses.
But rental vacancy rates have been at record low levels. Recently Brisbane’s rental vacancy rates were as low as 0.6%. This is terrible news for renters but positive news for investors.
So, is it a good time to invest in Brisbane? While it depends on personal circumstances and the quality of individual homes, our Investability Index shows that investability scores for Brisbane properties can be high. Supply of homes for sale, either from the 4 Ds that drive listings or for any other reason, are down more than 10% compared with a year ago. This, and demand from interstate migration and investors, will keep prices from toppling too far. Plus, auctioneer Scott Kennedy-Green says a good real estate sale is about achieving a fair result that allows you to move forward with your life. Taking a long-term view, Brisbane has everything in place to do well for home owners and property investors who buy carefully.
Residz can help buyers and sellers reduce the stress:
ARIA/Urbis from Brisbane City Council website
Brisbane Metro website