What factors are driving Brisbane’s property market now?
Have you been keeping a close eye on the Brisbane property market?
In my mind, there are two crucial ingredients that have fuelled this change and there is a strong relationship between the two.
These magical ingredients are jobs growth and migration.
So, what is the relationship between job growth and migration?
This is a fairly obvious one to follow.
There is no doubt Brisbane is an amazing place to live, it has got it all - the lifestyle, the weather, the list goes on.
However, it is difficult to move here without the possibility to thrive in life and this means having a secure and stable job.
It must be seen as a step up or an upgrade from your current status quo, otherwise, there is no movement taking place.
Once more and more jobs are being created, it creates opportunity, with many more willing to make the move to live here.
The tide has now turned as Queensland and Brisbane in particular make the transition from perceived country town to a new world city.
1. Jobs growth
We have seen a steady increase in employment growth from 2017 onwards, with a significant number of large projects announced for Brisbane.
It was estimated at around $16 billion dollars worth of infrastructure spending would transform Brisbane.
These projects included:
- The Queens Wharf Project
- Howard Smith Wharves
- Brisbane Airport Upgrade, including a second runway
- Eagle St Pier
- Cross River Rail
- Brisbane Metro
- Brisbane Quarter
- Brisbane Live
We now see many of the bigger infrastructure projects well underway and others in the early stages, while there are also many smaller projects with a green theme.
Until recently there may have been question marks around what happens next for Brisbane, once these projects are complete mid-decade.
It is now possible to put an end to this matter as Brisbane is hosting the 2032 Olympic Games.
The Olympics will not be a magic bullet, but it kicks off a new round of planning and infrastructure building, resulting in even more jobs growth.
If the correlation holds to form, migration will follow.
2. Migration
Migration has also followed a very similar pattern, as jobs growth has risen, migration has also increased.
While all forms of migration to Brisbane have been strong, it is interstate migration leading the way.
It has often been joked that you can buy two houses in Brisbane for the cost of 1 in both Sydney and Melbourne.
Perhaps that appeal is proving too strong, especially given the many new job opportunities on offer.
Conclusion
A huge injection of lifestyle and infrastructure projects have created a jobs boom and with it, migration has followed. Obviously, it triggered an increase in interest in buying Brisbane's property among home buyers and investors.
It looks as if employment opportunities will keep coming throughout this decade as Brisbane gets set to host an Olympics.
Not just for the usual superficial reasons of “the Olympics” or “its time” factors.
Importantly because those missing ingredients look set to stay and in the right locations property price growth will continue to strengthen.
Daily Bulletin
