Continued signs of growth in Queensland’s key Economic Indicators
Economic Activity creates new Jobs!
These key Economic Indicators continue to improve and are the underlying fundamentals which drive real estate markets forward. Deloitte Access Economics forecast QLD’s economy to grow at a very healthy 3.4% for both 2018 and 2019, a positive picture now and going forwards for Queensland
Did you know that QLD let the nations job creation market in 2017 at 4.6% or 109,000 jobs added?
Meaning a growth in population to fulfill these new jobs and take advantage of QLD’s lifestyle offering on the back of 20 consecutive months of planned positive employment growth
Queensland as a State is now the nations leader on net gains in population growth from interstate migration of 22,000 last year, this fundamental has increased the demand for new properties to be built for owners and renters. The result is that investors are not only seeing capital growth on their properties but they are also achieving stronger rental yields and exceptionally low vacancy rates. New jobs being created now and well into the future on current and planned infrastructure investment continues to attract more people into South East Queensland and it’s burgeoning economy
There is a $50 Billion investment into QLD infrastructure over the next four years which was was announced in the State Budget in June and once again astute investors understand that infrastructure activity is a major catalyst for economic activity. Economy activity creates new jobs and attracts population growth which in turn places upward pressure on supply of dwellings. Upward demand on a supply of dwellings results in property prices going up as does rental yield. We have witnessed this phenomenon in the past and recently in both Melbourne and Sydney
With the rise of property prices in Sydney and Melbourne, investors are turning towards South East Queensland property markets for more value for their investment dollar, lower vacancy rates and higher rental yields. The stars are all aligned for SEQ now and going forwards based on long term infrastructure investment and development
Whether you are investing in Brisbane, Sunshine Coast, Gold Coast, Ipswich or Toowoomba’s Local Government Areas you are investing in the hub of South East Queensland’s major infrastructure golden triangle. Remember that not all properties in this golden triangle are worthy of investment and one has to undertake their own due diligence on a selection of properties before coming to an informed investment decision
Editors Note :
Sentiment often ends up being a construct of the media based on little if any concrete evidence
Inner Brisbane : investors attracted to both inner Brisbane and Brisbane fringe suburbs and depending on budget will secure either an apartment or a townhouse. Contrary to media misreporting to create sensationalism inner Brisbane apartment supply has almost dried up with vacancy rates at all time lows. Key indicators affecting forward looking pricing for Brisbane apartment market are improving, albeit from a low base
There is a known oversupply of poor quality apartments, this is localised and not indicative of the wider Brisbane market. Not all property is investment grade, one has to identify what property makes for an astute investment based on due diligence and research or consulting a professional who has your interest at heart
The fundamentals of the South East Queensland property market are heading in the right direction.