This year the Queensland property market expects to bounce back from some recent stagnation, with the announcement of a $1.15 billion confidence boost.
South Australia’s Urban Construct Group responsible for the boost claimed the investment would go towards just under 2000 inner-city Brisbane apartments across four inner city projects, creating an estimated 3300 jobs. Meanwhile, a further 2200 apartments, townhouses and allotments also in the pipeline are to be delivered in the broader South East Queensland corridor over the next few years.
In a media release, the company described the move as a “once in a generation opportunity” with its current plans for Queensland to represent a significant portion of the capital city’s inner ring apartments.
“Queensland is once again the state of opportunity,” said Urban Construct Joint Managing Director, Todd Brown.
“With a stable local political environment, solid population growth, high infrastructure spend, low interest rates, strong Melbourne and Sydney markets and some noticeable pent up demand, all the fundamentals point to strong years ahead.”
Referring to the Place Advisory’s market report New Brisbane Apartment Report/June QTR 2013, which details 1621 apartments currently for sale across the inner Brisbane market, Urban Construct feels that given historical sales rates and current demand, the inner Brisbane market has remained under-supplied for the long-term.
Also a positive for Queensland is the success of the Bowen Hills 5-star apartment building, Belise, which claims to have surged into the New Year after selling almost 20 per cent of its remaining apartments in December alone, after a strong 2013 saw 65 per cent of Belise’s one-, two- and three-bedroom apartments acquired.
Residential market analyst and property adviser Michael Matusik said the December rush to buy or invest was not only due to buyers taking advantage of record low interest rates, but their pursuit of quality and value.
“An under-supply of inner city residential accommodation in Brisbane and the Queensland population on a sharp incline have allowed both owner occupiers and investors to recognise that now is the time to act – their confidence prompted by an upturn in the state’s economic cycle, as evidenced in the State’s latest employment and growth figures.”
According to their research by the Belise team, 2013 saw a large percentage of Belise apartment sales coming from interstate and overseas, expected to be influenced by Brisbane being recognised in a recent Jones Lang LaSalle report as the world’s fastest growing city. However, December figures showed a large uptake in local investment.
Belise sales and marketing director Michael Wilkins said the positive impact of an increase in local investors will be the subsequent increase in owner-occupiers.
“A high percentage of owner-occupants ensure more residents have a genuine interest in maintaining the quality of Belise on a long-term basis, and also brings about a real sense of community within the development,” Mr Wilkins said.
Queensland property is beginning to regain traction since the aftermath of the global financial crisis, coupled with the impact of the 2010-2011 floods, leaving a market in need of a boost.