Dun & Bradstreet Global Risk Indicator rates Australia as one of the safest countries in the world for investment. The continued internationalisation of the Brisbane economy, combined with a local pool of talent and a collaborative business culture, provides a strong, competitive environment for Brisbane’s progressive and far-sighted business and economic environment gives investors more confidence in their quest to optimise investment return. This confidence is built around Brisbane’s stable political environment, its proven and forecast population and economic growth, and ongoing public and private sector commitment to building a stronger economy and intellectual capital base. (Source: Dun & Bradstreet, Insight - Issue 2, 2014).
Strong, growing local economy
Brisbane is Queensland’s economic engine room – a growth city with a strong history of economic performance and significant infrastructure investment. Greater Brisbane’s economy has rapidly expanded to be worth $135 billion, representing 47.1 per cent of Queensland’s economic output in 2012-13 (Source: Brisbane City Council economic fact sheet, Q2 2014). Despite global uncertainty, the economy is predicted to grow to be worth more than $217 billion by 2031 (Source: Brisbane City Council, Economic Development Plan 2012-2031).
Proven performance
During the worst of the global financial crisis, Australia maintained strong growth, outpacing all other advanced economies and securing a 22nd consecutive year of recession-free growth in 2013. The Queensland economy has consistently demonstrated above-average growth, growing at an average annual rate of 4 per cent over the past decade, 1 per cent above the Australian average (Source: ABS, Australian National Accounts: State Accounts 2012-13).
Future prospects
Queensland is perfectly positioned to capitalise on this and consequently the Queensland economy is expected to grow 6 per cent in 2015-16 (Source: Queensland Treasury and Trade, State Budget 2013-14 Mid-Year Fiscal and Economic Review). Compared to Sydney, land and housing prices are relatively lower and there is greater potential for price appreciation in Brisbane. Led by new overseas migrants, population growth is set to continue for the Brisbane metropolitan area with an annual rate of 1.2 % projected to 2021. The mix of domestic growth is changing. Generally, more favourable revenue conditions for retail and industrial occupiers are expected, and combined with contained supply (in most markets), should provide some support for rent growth. For investment markets, “required returns” are expected, the lowering of which has been the key driver of yield compression in 2014, and such of which will be determined increasingly by rent growth prospects.
Increasing demand for CBD accommodation has transformed the city with a number of relatively new high-rises and distinctive bridges now peppering the skyline. Most buildings are oriented to take advantage of beautiful river views, either towards Moreton Bay and its islands, or upstream toward Mt Coot-Tha and the west. (Source: Brisbane City Council)
Building approval in the first quarter of 2015, totalled 5,089 houses and 6,320 apartments approved in the Brisbane metropolitan area. This is trending 3.5% higher for houses and 78.8% higher for apartments compared to the same period in 2014. (Source: Knight Frank Residential Research, ABS).
The CBD itself is an easy-to-navigate grid. The city is well-serviced by public transports. The Botanical Gardens are nestled in a bend of the river, offering a shady spot to relax for the city’s office workers and students from nearby Queensland University of Technology.
Albion and Spring Hills in Brisbane are popular area with multiple developer achieving rapid sales. Alongside its location, the area is surrounded by so many great amenities and its location, making it an attractive proposition.
