South East Queensland

South East Queensland is set to be Australia’s premier growth State going forwards based on 4 primary reasons

1.  Population Growth : 1.5m new residents over the next 20 years to 4.9 million by 2036

2.  Infrastructure Investment : over $25bn in infrastructure investment will drive broad expansion

3.  Jobs Growth : creation of thousands of new jobs now and well into the future through major employment hubs

4.  Affordability and Demand : new jobs attracting strong population growth for jobs, affordability and lifestyle placing upward pressure on the supply of dwellings to own or rent

Meaning SEQ will require 794,000 new homes to meet current and planned population growth by year 2034 = almost 50,000 new dwellings per annum resulting in capital growth and rental yield increases!!

SEQ includes the Golden Triangle from Sunshine Coast in the north, going south to Brisbane then onto the Gold Coast, inland to Ipswich and back up to SC via Toowoomba … all primary growth areas and thus your investment opportunity

 

SEQ – the nation’s new Economic Powerhouse

 

More than $25 billion in infrastructure investment and spending in SEQ will drive the broad expansion of SEQ resulting in more than 1.5 million new residents by 2034

Did you know that 1 in 7 Australians currently live in South East Queensland ?

South East Queensland – Australia’s new Powerhouse Economy

Thinking of Investing?  = now more than ever is your Opportunity

• Fastest growing State in Australia
• Highest level of continuing migration and immigration into Queensland
• One of the fastest Population Growth locations estimated to reach 6.6 million people by 2031 and 9.1 million residents by 2056; growing by 80,000 residents per year which is twice that of other OECD countries
• Strongest growing Economy in Australia @ 4% – well above the national average
• Mining makes up only 9% of this 4% growth, meaning a broad based economy
• Property offers Value for your investment Dollar
• Employment opportunities plentiful with ABS reporting 28,000 new jobs per annum in the period to 2036
• High demand for dwellings has led to an estimated 33,000 new dwellings required per annum
• Supply of homes has been around 25,500 leaving an annual shortfall of 20% putting upward pressure on pricing and rent
• An increasing young family demographic paired with affordability and strong employment growth, particular in health and education sectors, will significantly drive future housing demand
• Vacant Land values continue to rise with 31.82% in 2017 and to date over 11% in 2018

What is driving South East Queensland’s new home market?

SEQ is one of Australia’s largest metropolitan regions and a leading destination for tourism, business and investment being planned as a master-planned city accommodating residents and tourists alike. Very well supported by public transport infrastructure, education, medical services and also easy access to retail shopping

And of course a strong growth in population coming in to not only fill new employment opportunities being created but also due to affordability and lifestyle

POPULATION GROWTH numbers by year 2040

• Brisbane a massive 3 600 000

• Ipswich 462,000 (by year 2031)
  

• Sunshine Coast 400,000

• Toowoomba 200,000

• Cairns 250,000

• Townsville 275,000

• Sunshine Coast 400,000

• Gold Coast 1 000 000

REIQ Capital Growth probability – median value by year 2040

• Aspley (Brisbane) house will be worth $1.23 million
• Coorparoo $2.1 million
• Ipswich $1.16 million
• Logan Central $797k
• Mt Gravatt $1.45 mil

Brisbane is currently growing by 100,000 new people per annum that is 2,100 per week!!!

Resulting in 800 – 1,000 new dwellings being required … supply cannot keep up with demand putting upward pressure on Rent which will also lead to capital growth

Brisbane is planned to grow to the same size that Melbourne is at today

Download the Queensland Government Population Projection Report to year 2031 here

Housing Market update

Never in the History of Australia has there been such a massive investment into Infrastructure

Billions and Billions of Dollars is under construction, budgeted and planned for in the Golden Triangle from Sunshine Coast down through Brisbane to the Gold Coast, across the west to Ipswich (including Toowoomba) and back up north to fast growing sought after Sunshine Coast

• As you know where a government invests, they want a return on investment
• They invite industry to invest, who also want a return on investment
• Both create new jobs now and into the future
• Jobs attract people
• Population growth places upward pressure on the supply of property to own or rent
• Capital Values thus increase as do rental yields

Many parts of Queensland housing markets are showing convincing signs of improving or imminent signs of growth. Banks continue to value Queensland property close to purchase price, however high demand will continue to increase values during 2016. Queensland is showing that the high demand for dwellings (owner or rental) is exceeding supply with no signs of abating. The result will be increase in capital price and higher rental yields

Low interest rates is making Queensland property more affordable and the opportunity of Jobs being what they are in Queensland are major attractions driving population growth – Queensland looks set for recovery with the possibility of house prices heading towards those in expensive cities like Sydney and Melbourne

Resource centres in Queensland (Gladstone, Mackay, Rockhampton, Emerald etc) have all experienced price increases and also Rent Increases, at at time when most of Australia were experiencing a decrease in values. Driven by Resources, Jobs and Population Growth have recently come off the boil with analysts predicting they have bottomed out and next phase back to growth as population puts renewed pressure on supply

Resources (mining) makes up just 9% of Queensland’s 4% economic growth. What this means to Queensland is that it is set to continue to grow into the future, driven by new mines and coal seem gas projects being completed and the production of resources and their export. With over $165 billion worth of resource projects under way, Queensland economy is set to continue to grow well into the future

The majority of Resource Sector projects are still under construction and yet to produce anything at this time, meaning 20 to 30 years of economic development is still ahead for the Queensland Economy

With hundreds of Billions of Dollars is being invested into Queensland infrastructure now and over the next 10, 15 and up to 50 years – Queensland is set to grow

Queensland is undergoing a massive wave of new migration and immigration due to massive industry investment which is stimulating the job market. A rush on property is resulting in scarcity of Rental Accommodation and of available House and Land opportunity / Apartment dwellings

 SEQ Vacant Land Report June 18

House and Land Packages – Townhouses – Units – Apartments :

Brisbane, Sunshine Coast, Ipswich, Springfield Lakes, Moggill, Fitzgibbon, Caboolture, Morayfield (and Moreton Bay), North Lakes, Toowoomba, Ningi, Burpengary, Waterford Windaroo, Marsden, Beenleigh, Springwood, Calamvale, Capalaba, Salisbury, Raceview, Richlands, Redcliffe,  Lawnton, Petrie, Kallangur, Kippa Ring, Robina, Pimpama, Nerang, Coomera, Ivadale Lakes, Whitsundays, Rockhampton, and the list goes on throughout SEQ and QLD

Properties available today might not mean that they are available tomorrow … inquire today to avoid disappointment especially in highly sought after suburbs !!

Always invest where the Government and Industry are investing!

“Billions of Dollars are being invested into South East Queensland right now into major Infrastructure projects by government creating thousands of jobs today and more coming on the back of the next and next infrastructure project. Industry is coming in creating new jobs on the back of new infrastructure. New jobs attract Population Growth, which places upward pressure on Supply of Dwellings to own or rent. This upward pressure is ensuring Capital Growth and Strong Rental yields.”   this is your investment opportunity

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“Dear Fellow Queenslanders,

This State Budget demonstrates the Government’s commitment to growing our economy, rebuilding Queensland, and making communities more resilient for the future.

The Newman Government is unashamedly pro-growth. We are continuing the task to repair the State’s finances – a task made even more difficult after the January 2013 natural disasters and the loss of revenue.

The Budget strikes the right balance between stabilising debt and investing in better quality services. We are investing heavily in giving children a better education through our Great Teachers = Great Results plan, injecting record funding into healthcare, law and order, and increasing funding for people with disabilities and their carers.

With floods and cyclones battering communities year after year, we are determined not just to rebuild Queensland, but to increase our resilience to the natural disasters we know are inevitable.

This Budget is our commitment to fix the State’s finances and grow a stronger economy, so that we remain a great State with great opportunities for all.”

Hon Tim Nicholls MP
Treasurer and Minister for Trade

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Further afield and more speculative :

The likes of the mining regions in the Surat Basin has dropped in value but seemed to have bottomed presenting good value but more speculative in places like Gladstone (why Gladstone), Mackay and Bundaberg spilling over to nearby towns.  Rockhampton is receiving a massive spill over from Gladstone and Chinchilla on the verge of a boil over .. the list of opportunity in other locations is abound!

There are 40 major infrastructure projects underway in the Surat Basin, committed or proposed with an estimated value of close to $200 billion. The projects are in their infancy stages and have life spans estimated to be from 50 – 250 years, so this is only the beginning of the boom and the much talked about 2 Speed Economy.

 80% of these projects are within one hour’s drive of the town of Chinchilla and mining and energy companies require their staff to live within one hour of their work site.

 The major industries driving the boom are gas, coal, power, solar, coal seam gas, (CSG), water, liquefied natural gas (LNG), agriculture, manufacturing, port and rail.

 It is expected that 42,000 new workers will be required to service the Surat region. The annual growth in median house prices in Chinchilla has averaged 16% over the past 10 years. New homes in the area are renting for up to $1000 per week (average is $500-$600) and Independent research shows that Chinchilla has a rental vacancy factor of less than 1.5%, meaning that there is a strong under supply.

 Chinchilla has been rated No.4 in Top Rental Suburbs in Australia and within the Top 10 of Australia’s Top 100 in HOT SPOTS in the May edition of Your Investment Property (YIP).