How to Invest in Brisbane’s Booming Off-The-Plan Apartment Market

When investing in property, you’ll want to make sure that it offers a good return without undue risk, and that the property can be managed easily. Right now, investing in property in Brisbane offers the property investor all of these elements. Brisbane’s property market has lagged the recent growth of Sydney, but that looks set to reverse in the coming years as affordability and jobs creation draws more people to Queensland’s capital. At the heart of the property market in Brisbane is the recent boom in new apartment developments.

Long-term growth forecast

It’s not without foundation that Brisbane is attracting interest from both domestic and international property developers. Singapore’s giant developer, Roxy Pacific, recently signed a joint venture agreement with RP Developments and Hostplus to develop a key site in South Brisbane. In fact, everywhere you look in Brisbane you’ll see the city being transformed, developers; and investors’ confidence bolstered by the following positive property market dynamics, including:

  • Employment is growing in Brisbane, and unemployment falling
  • Low interest rates are making Brisbane properties even more affordable
  • Infrastructure planning through to 2013 will meet the needs of a ballooning population, with Queensland’s population set to double by 2056
  • Brisbane’s population is expected to grow by 1.1% every year through to 2021,
  • According to Hotspotting.com.au, Brisbane house price growth has averaged 11% per year since 1970: that’s a doubling of prices every six years. BIS Shrapnel expects property prices to increase across Australia over the next three years, with Brisbane’s growth the strongest at 17%.

Off-the-plan property booming in Brisbane

Despite the increase in development within Brisbane, off-the-plan property prices are smashing records. The average price paid on a weighted basis rose from $545,478 to $551,558 in the last September quarter, and in the last quarter of 2014 new projects released totalled an amazing 2760 apartments. Unsurprisingly, the Skytower development (set to become Brisbane’s tallest building) has received huge interest, but developments such as Queen’s Wharf will provide investors with even more opportunity.

The future looks bright

Place Advisory director Lachlan Walker told news.com.au that current record sales rates may not be sustainable in the long-term. Though he sees some saturation of the market, he believes that “Looking forward, we’re going to see higher quality, more expensive stock developed which will see sales rates decline and selling prices naturally increase throughout Brisbane.”

Put yourself in the forefront of Brisbane property investment

Brisbane is going through a major redevelopment process in line with the city council’s long-term infrastructure planning. There have been record numbers of apartment and off-the-plan sales in the last year (a total of $2.4 billion dollars in 2014), but the emphasis going forward will be on quality and lifestyle.

Those investors who buy off-the-plan property in developments that meet the lifestyle needs of residents, and offer the quality finish expected, will benefit most from Brisbane’s booming property market.