The seven factors behind Brisbane’s upcoming growth: John McGrath

The seven factors behind Brisbane’s upcoming growth: John McGrath
The seven factors behind Brisbane’s upcoming growth: John McGrath

Given Melbourne and Sydney’s strong growth, John McGrath says that it may be wise to turn attention elsewhere – specifically, Brisbane and South-East Queensland, where he expects to see the best capital growth of all the major cities over the next three years.

He suggests that it will be a fantastic opportunity for southern state-based investors, downsizers and seachanging families.

"Upgraders are driving most markets in Queensland, with increasing interest from Melbourne and Sydney investors chasing better yields and value,” he noted in his most recent McGrath report.

“Last year, the sub-$1 million was the standout sector, this year it has extended to sub-$1.5 million. The $500,000 to $700,000 bracket is very strong, with lots of families selling to upgrade to $1 million plus properties and lots of buyers ready to compete for their homes."

He detailed that Brisbane is in the beginning of its growth cycle.

This is characterised by the following seven factors:

  1. More local and out of area investors

  2. More families upgrading while value remains

  3. First home buyers looking to get out of the rental cycle

  4. Returning developers

  5. Number of sales goes up

  6. Days on market goes down

  7. More buyers attending opens and registering to bid at auctions

"All of this is happening in Brisbane right now and it's finally starting to have an impact,” he said, noting that as Sydney and Melbourne’s growth slow down, we can expect Brisbane’s to ramp up.

The inner ring markets, that is five to six kilometres from the CBD, were noted as being in “strong demand” followed by the middle ring, 10 kilometres out.

"We are starting to see that classic ripple effect as more people expand their search to the middle ring where they can get bigger blocks at slightly better prices yet still with easy access to the CBD,” he said.

"More buyer's agents are setting up in Brisbane - indicative of increasing demand from interstate clients."

Larger infrastructure projects, including hospitals, are also likely to drive growth over the next few years.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Brisbane John Mcgrath

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