Brisbane, Morayfield, Ipswich, Sunshine Coast to outperform other state capitals for price growth
Capital Growth
Based on industry reports and market research pockets of QLD have been identified to outperform Melbourne or Sydney for capital growth during 2016
Queensland prices have not moved for a long time, making it highly affordable compared to other States according to BIS Shrapnel and believe that Southeast QLD centered on Brisbane will become a sound property market with strong rental yields and capital growth forecast to up to 17% price growth over the next 3 years … most during 2015 and 2016
Rental Yield
Did you know that Queensland already has higher rental yields than NSW (3% average) and Melbourne (2.9% average) having an average of just over 4.5%. New properties in the ‘golden triangle’ from Sunshine Coast through to Brisbane and south towards Gold Coast then across west to Ipswich and back up to Sunshine Coast and including Toowoomba, demonstrate rental yields of 5% to 6.5% today
This ‘golden triangle’ is already attracting investors from Sydney and Melbourne who are wanting higher rental yields (being cash flow positive) plus strong prospect of realistic capital growth where for the value of a new one bed apartment in Melbourne of 40 sq/m one could secure a 3 or 4 bed house with land for the same price + get higher rent upfront
Higher Rental Yields = Cash Flow Positive investment property; gives you the tool and ability to build an Investment Property Portfolio that much quicker and thus reach your own Financial Planning Goals far more effectively
Infrastructure Investment in Queensland will equate to Capital Growth
Capital Growth occurs when :
A basic Rule of Investment into property is to secure your investment in a location that includes as many of the following fundamentals as possible to soundly underpin your Investment Property. South East Queensland has the highest investment over any state …
- Government Expenditure
- Creates jobs
- Industry Expenditure
- Creates jobs
- Job nodes attract people
- Population Growth
- Looking for employment
- Increase in demand for property
- Low supply struggles to meet new high demand
- Building approvals increase
- Creating new jobs in the building industry
- Low supply puts pressure on demand for Rentals
- Rental yields increase
- Improved infrastructure budgeted for and built
- Hospitals, education (school / uni etc)
- Public transport (bus, train, roads, freeway0
- Retail precincts
- Sporting facilities
- Etc
- Demand ensures Capital Values increase
- Two people bidding on the same property has never made prices go down
- At same time two people wanting to rent the same property has always ensured rental yields increase
- Improved infrastructure creates new jobs, once again attracts population growth, once again placing pressure on supply of dwellings, building jobs created and the circle of life continues
- And of course historically low interest rates vastly improving ones affordability to secure a dwelling to live in or for Investment Purposes
The locations we are referring to all the fundamentals in place and on the go to soundly underpin your investment decision
Government and Industry Investment equates to capital growth
Property analysts talk about a Property Clock to demonstrate the cycles property values move in. At this time South East Queensland would be sitting at around the Twenty too mark on the clock heading towards a recovery and upturn of this current cycle
Property sales volumes reached new highs during 2014 across the Municipality of Brisbane (20km radius) with 32,000 residential properties sold of which 18,000 were detached houses; 12,000 apartments / townhouses and 2,000 vacant lots demonstrating an increase of around house sales of 17%; land sales by 13% and apartment / townhouse sales by 11% … according a recent Matusik report
It continued to demonstrate that the median detached house in the Municipality of Brisbane increased by 7% to a new high of $570k with BIS Shrapnel predicting Brisbane to outperform Sydney by twice the growth rate over the next 3 years
Forecast Growth Locations include :
- Ipswich (certain suburbs within Ipswich)
- Moreton Bay and Morayfield
- Sunshine Coast
- Brisbane
- Toowoomba
- Gladstone
Queensland has over the past two decades has achieved economic growth exceeding the Australian national economic growth!
The 2015 / 2016 financial year is expected to see Queensland deliver the first fiscal surplus for Queensland in a decade continuing to strengthen the state’s economy and ongoing creation of new jobs.
Queensland is fast approaching becoming the nations leading economy growing at 3% entering a period of transition as export of CSG (Coal Seam Gas) phase begins in 2016. Expecting to continue to outstrip national growth over the years ahead as LNG ramps up.
Residential construction is also a driving force to the QLD economy which leads to employment, retail spend and then white collar employment. 60,000 new jobs were created in Queensland during 2013 / 2014 taking the total number of employed persons to 2.32 million. Now accounting for just over 20% of Australia’s total employment and growing.
With over $134 Billion Dollars invested into Infrastructure in Queensland making this the largest infrastructure investment in the history of Australia, the spin off being the creation of new jobs, attracting population growth putting further demand on the supply of property.
When a government invests it expects to achieve a financial return on its investment and Queensland commitment to the delivery of infrastructure ($134 Bn) is in place to manage the ongoing economic and population growth over the long term.
Queensland population growth is historic, according to latest data the states population is at 4,658,560 at June 2013 a growth of 89,960 persons recording a growth rate of 2% which is higher than the national growth rate of 1.8%
Queensland population growth according to ABS is projected to increase by 49% equating to more than 4,498,000 persons to reach a population of 9.259 million persons by 2061. This is a growth of 95,700 persons per annum.
