(THE OLYMPICS & THE ELECTIONS)
The Liberal Party has only just taken the reins of the State, but the countdown to the Olympics is well underway. 2032 is less than eight years away and the clock is ticking for our sporting venues – a major drawcard throughout the election campaign.
Ahead of hosting the world’s biggest sporting event, Brisbane City Council is furiously delivering city-shaping projects such as the Brisbane Metro, Cross-River Rail and the construction of bridges across Brisbane, which will have significant social and economic benefits for local residents and businesses. In fact, the opening of the Kangaroo Point Green Bridge on December 15 will no doubt have a profound impact on both quality of life for residents and the values of local properties!
The path to making a decision on the competition venues and facilities on the other hand remains in shambles. Will Brisbane’s chosen venue(s) be able to compete with the 2028 Games’ Los Angeles state-of-the-art SoFi Stadium, or will time run out to complete a major construction project? All we can hope is that the Games don’t end up in shambles before they even begin!
The race toward the 2032 Olympic and Paralympic Games has highlighted the urgent need for infrastructure and transport upgrades across SEQ, triggering a major influx in infrastructure spending. Historically, this has been a major driver in residential real estate by generating jobs, boosting local economies and triggering real estate booms. Despite the ongoing stadium conundrum, the countless projects currently in full swing will only improve the accessibility and appeal of our city and its surrounding major hubs for years to come.
Following the 2000 Sydney games, house prices grew by 66 per cent. If Brisbane follows this trend, Olympic suburbs could reach a median price of $8 million in the next ten years. Even if values increased at half that speed, the question begs itself: How will the average income earner secure a home when the median price tag reaches $2 million, and can our existing dwellings and future constructions even keep up with the demand?
(BRISBANE MARKET UPDATE)
Climbing another 1.5 per cent in the last quarter, Brisbane’s median house price could reach the million dollar mark by the time Christmas trees return to storage, provided it sustains its current pace.
Brisbane retains its position as one of Australia’s strongest capital city housing markets, with dwelling values rising for the seventh consecutive quarter as we head into the final months of the year. The city’s unit market has overtaken Melbourne for the first time in 25 years, making it the nation’s second most expensive capital to purchase a unit.
As affordability dwindles, buyers are turning to units, fueling the 3.3 percent price gain for this type of property throughout the past three months. The median price for apartments has surged by $20,000, narrowing the gap between units and houses to a three-year low. House prices may have risen roughly one-third slower than the previous quarter, but remain on track to hit $1 million dollars before the year comes to an end.
Looking into the future, Queensland may well have more million dollar suburbs than Victoria in 2025, and a predicted interest rate cut would further drive demand across the entire market.
Assuming the growth rate of the past decade carries over into the next 12 months, roughly 99 Brisbane suburbs could well exceed the $1 million threshold next year.
(DRIVING FACTORS)
The robustness of Brisbane’s market in recent years is directly linked to the sharp increase in internal migration since 2020 and the arrival of anticipated infrastructure across the city.
During the pandemic, Australians who flocked north in search of sunshine and less rigorous restrictions were met by a relaxed lifestyle they would never want to miss out on again. Brisbane’s mutation from country town to cool capital hasn’t just captivated Australians in search for their forever postcode – international investors too have noticed the strong upside and favourable rental returns in the state’s capital, returning to the market in droves.
As a result, population growth has steadily increased over the past five years, forecasted to grow by more than 16% by the time the Olympic flame is lit (provided our stadium conundrum is resolved by then!).
An increased need for dwellings, combined with a tight supply of existing homes and astronomical building costs continue to drive property prices skywards, while exacerbating the current rental crisis. First home buyers scramble to get their hands on affordable homes, snapping up investor stock and narrowing the pool of options for tenants – a vicious circle with no end in sight, unless construction can eventually ramp up again significantly.
The Liberal Party has ambitious plans to increase home ownership and rental availability, committing to the construction of one million new homes by 2044. It may be music to the ears of Queenslanders struggling to secure affordable housing, but the current strain on the construction industry could prove to be a major hurdle.
Other initiatives on the new Premier’s list will appeal to those looking to get a foothold in the property market in particular. Stamp duty could be abolished entirely for first-home buyers and a new scheme could enable a first property purchase with as little as a 2% deposit. In addition to this, an easing on the First Home Buyer’s Grant would allow recipients to rent out a room in their first home, solving two major issues: helping Queenslanders get into their first home sooner and alleviating the rental crisis.
This year already, increased Government support, cash rate holds and well-overdue updates to the First Home Buyer Stamp Duty Concession in Queensland, have instilled renewed confidence in the market for homebuyers and strategic investors.
(WOOLSTORE & HERITAGE PROPERTY UPDATE)
Five years into an exponential growth spurt, the Brisbane property market remains a burgeoning one, and heritage property values have shot up in line with these results. In fact, they have maintained a competitive edge over other types of properties, where the average price increase has ever so slightly softened in the latter half of the year.
A slow down in construction due to exorbitant building costs has lifted buyer appetite for existing properties overall, further lifting values across the city and beyond. Heritage and Woolstore properties with a price tag beneath a million dollars have been particularly sought after, and the increased appetite for this type of asset has in turn driven results upwards in this sector of the Brisbane market.
The ever growing residential price tag of the 4005 peninsula continues to attract more affluence into the suburb, evident in the calibre of the renovations undertaken across a variety of properties. In line with many of the Woolstore redevelopments approaching their third decade, these cosmetic refreshes and essential upgrades have taken on impressive dimensions and quality of finishes. Heritage homes are rapidly evolving into some of the most elaborate and luxurious residences in the area, consequently lifting the value of these residences even further!
(TENERIFFE BANKS)
In early August, leading luxury property developer Kokoda Property released first glimpses of what life along the last remaining riverfront site in Brisbane could look like.
On October 30, 2024, Teneriffe Banks sold a record-breaking $285 million dollars worth of apartments in a single day, with sales on two of the five unique buildings released on the site now nearly sold out.
Comprising over 200 residences, homes in this riverside development range from $1.5 million for a two-bedroom apartment to over $25 million for a premium penthouse. A highly contentious project, the proof is in the response – buyers want a piece of Teneriffe at any cost, and this project offers luxury, innovation and a rare riverside address.
If Howard Smith Wharves, standing quietly underneath the Story Bridge for several decades before being given a new lease on life as Brisbane’s favourite lifestyle destination, is anything to go by, an exciting future lies ahead for this tired industrial site, reinvigorated by vibrant commercial spaces and a seamless continuation of the riverwalk for locals and visitors to enjoy.
(QUEEN’S WHARF PRECINCT)
For years, the Queen’s Wharf Precinct has scored an honourable mention in my quarterly updates. To finally stand atop the Skydeck, taking in the panoramic views from the glass platform on a sweltering September day felt surreal.
Albeit unfinished, this mammoth precinct will change the way we experience Brisbane. The Star may be in a poor way financially, but once fully operational, this venue will cement itself as a major asset to the city, beyond its reputation as a destination for leisure and entertainment. Surrounded by riverside parklands and historical buildings, the precinct is already a major attraction for locals and will remain a massive job generator for years to come.
Developments of this scale signal to the world that Brisbane is an attractive destination for capital, and this has not gone unnoticed by home buyers and investors, local and international.
(HOWARD SMITH WHARVES)
Cementing itself as Brisbane’s most sought-after destination for residents and visitors of all ages since opening in 2018, Howard Smith Wharves recently revealed plans for a major facelift.
There’s no shortage of ambition in the renders released, promising an extravagant destination including an over-water pool, a nine-storey hotel and a revitalisation of existing structures.
(LOOKING AHEAD)
Across all four corners of the city, the Olympics are the catalyst for change, delivering a world-class destination in time to welcome international spectators and athletes for a spectacular sporting event!
Ranking amongst the Time magazine’s world’s greatest places last year, Brisbane’s lifestyle is what sets our capital apart from the nation’s major cities. Unsurprisingly, the demand for properties, from entry-level to high-end, both as primary residences or investments, particularly within five kilometres of the CBD is high.
More than ever before, liveability is a priority for homebuyers and investors. Proximity to the river or greenspaces, dining and retails precincts as well as good schools are driving factors, along with access to public transport or major roads is a non-negotiable for many.
The right property in a good location will always make a good investment and Teneriffe certainly meets all of the criteria listed above, making it Brisbane’s premiere postcode to live and invest in.
I look forward to answering any questions you might have about the market or your property’s value.
Talk soon,
Ben
