3 reasons why Brisbane property is still undervalued...
According to CoreLogic Home Property Value Index at March 31st Brisbane property values were up by 6.84% YOY, and 2.35% MOM which is nearly double the growth we saw in February. The real growth has been in the housing market which has seen 7.91% growth YOY while units have seen 1.91% growth.
And, according to the major banks, Brisbane is still on track for at least another 3% growth this year and a further 10% in 2022 meaning the price of an average home is going to increase by about $115,000 in 21’ and 22’.
Speculation of further growth is all well and good but what are the facts underpinning this speculation, specifically, here in Brisbane?
Brisbane – The preferred host for the 2032 Summer Olympics.
The International Olympic Committee announced in February that Brisbane is the preferred host for the 2032 Olympics due to having a “very advanced games concept”. Meaning that 80%-90% of the infrastructure required to host the event already exists as well as having experience in hosting major sporting events and a favourable climate.
So, what does this mean for Brisbane property? Winning the bid will mean that local and federal government will need to bring forward major infrastructure improvements, mostly relating to transport and roads, and with major infrastructure projects come jobs…and lots of them.
Will better options for transport around the city and to our local beachfront neighbours like the Gold Coast and the Sunny Coast, Brisbane will become a more desirable place to live.
Brisbane’s new $1.1b runway for Brisbane Airport.
Although paused by COVID, the new and complete runway (which officially opened in January this year) will effectively double Brisbane airports capacity to bring more visitors to the region and give residents a greater choice of airlines and destinations.
It has been estimated that by 2035 the new runway will have created 7,800 new jobs and contribute to $5 billion in annual economic benefit to the region.
The usual suspects.
Record low mortgages which aren’t tipped to increase until inflation is between 2-3%.
Low stock levels for both homes and units. Less people moving at the moment and fewer approved development of units on the horizon.
Strong internal migration to the Sunshine State.
Government supporting the housing sector as the backbone of Australia’s economic recovery.
Many buyers are worried that the market has become so expensive that they have missed the boat however the boat is only going to keep sailing so my advice would be to grab a dingy and motor across to the yacht before the water gets too choppy.