Why buy investment properties in South East Queensland?.......

Written on the 3rd of November 2008 by Compiled by Liz Wilcox of Hot Property Specialists

The rate of population growth in the South East Queensland equates to approximately 630 new residents moving into the area each week. An estimation of housing demand can be derived based on the population growth and average household size of 2.6 people.

Using these figures, Greater Brisbane requires 250 new dwellings each week to provide housing for new residents, however realistically this figure is likely to be higher, given the trend towards smaller household sizes. The 'urban renewal' process has resulted in many of Brisbane's inner suburbs being transformed from industrial eyesores to premium residential / retail / lifestyle precincts e.g.(New Farm, Teneriffe, Albion and Milton just to name a few) which are now in high demand and achieving the region's highest price points for medium and high density living which has placed the inner suburbs out of reach of first time property investors.

In the November 2008 issue of the Australian Property Investor Magazine,  they have named Australia’s HOT 100 Locations for 2008. Just to name a few of these ‘Hot Locations’ in which Hot Property Specialists Buyers Agency  buy in for their clients - Wynnum, Morningside, Wooloowin, Yeronga, and Margate.(Whatever you do - Don’t forget about the adjoining suburbs as they will normally feel the flow on ‘ripple effect’ of these HOT locations.)

The outer areas of Brisbane have recorded the highest population growth rates and this has been reflected in the last 12 months growth figures - which you can find in the Australian Property Investor Magazine - November 2008 issue. These areas may just suit your investment goals and we can help you purchase the best possible property at the lowest possible price in these areas.

Below are the areas and the median past 12 month growth %, accompanied with the annual growth over 10 years %.

Other areas to keep in mind for Investing are:

Looking towards the future:
The population of the Greater Brisbane area is conservatively projected to increase at an average rate of 1.5 percent per annum to the year 2011. By 2021, the population of the Greater Brisbane area is projected to be in excess of 3 million residents. Experts in the property field have said “Compared to other capital cities, Brisbane is expected to maintain one of the highest rates of growth for the nation”.  This is good news for investors looking for good solid growth properties.
All those extra people will need somewhere to live – 575,000 new homes will be built in the next 20 years, according to the State Government’s South-East Queensland’s Regional Plan.

A report by property experts KPMG predicted Brisbane will have 46 percent more dwellings in 2031 than 2001, the Sunshine Coast 63 percent more and the Gold Coast 56 percent more.
Property analyst Michael Matusik says cost will make inner-city living an impossible dream for all but a small, exclusive group and only the wealthy will be able to afford to live within a 15km radius of the central business district.
With the average house price in southeast Queensland likely to hit $1 million by 2026, he predicts up to 45 percent of people will be renting.
 
The SEQ Regional Plan Developments on green field sites in the southeast will incorporate a variety of housing types, sizes and designs – ending the “one-size-fits-all” sort of housing estates which have sprung up in many areas over recent years.

Houses of the future will have to be designed to reflect the area’s sub-tropical climate and incorporate “passive climate controls” such as vegetation use and positioning the house to the best end use on the property. Power and water efficiency will be more important and the State Government has set a target for a 25 percent reduction in water consumption over 20 years from the current 300 litres per person per day. Rainwater tanks and water recycling will become commonplace.

The Government estimates:
That 475,000 new jobs will be needed to support the extra population over the next two decades. The Smart State strategy has identified knowledge-based, creative industries as the growth areas. These would include aviation and aerospace (especially in the western corridor), biotechnology, information and technology, tourism and pharmaceuticals.
It is also envisaged that we will attract more professional, business and financial services away from Victoria and New South Wales.

The “activity centres” concept in the Government infrastructure plan is aimed at reducing the huge amount of traffic commuting across the city and across the southeast region each day. The idea is that people will live close to centres, based on key public transport hubs and they will catch buses or trains there to work, shop, use government services and recreation and leisure facilities. Major projects proposed in the plan include:

* More than $1.2 billion for new busways in Brisbane including one from Dutton Park to Capalaba and another from Enoggera Creek to Bracken Ridge.

* $590 million to add a rail line from Corinda to Redbank and a new line from Darra to Springfield.

* $500 million for a rail line to Coolangatta.

The heart of Brisbane will be transformed over the next 20 years under a city council masterplan.

Building height limits will be removed and cars discouraged as major public transport initiatives carry people into a more pedestrian-friendly central business district.

Highlights include:

* An underground city rail circuit with stations at Garden Pt, Eagle St, Spring Hill and Centenary Place

* An underground bus network with a station below King George Square and vehicles travelling below Roma St and Adelaide St to connect with the inner Northern Bus way.

* A mass transit system connecting West End, the City and Fortitude Valley.

* Roma St, Edward St, Victoria Bridge and the top of Melbourne St will become pedestrian-friendly, tree-lined boulevards with traffic calming.

* Three new pedestrian and cycle bridges over the river and a bus bridge from Adelaide St. to South Bank. 

* New plazas at Melbourne St. and Eagle St. and a riverside plaza at North Quay.

From the big country town of two decades ago to a modern super city in 2026, the transformation of Brisbane and southeast Queensland over the next 20 years will be beyond the imagination of many.

If you are unsure of the areas mentioned above or would like further information on how Hot Property Specialists Buyers Agency can help you capitalise on this future growth– we would love to discuss this you.

Please don’t hesitate to call Liz Wilcox on (07) 3299 6004 or see our website at www.hotpropertyspecialists.com.au

Please Note: this information is to be used as a guide and at all times, when looking to purchase Real Estate you should use more than one source to base your discussions and you should consult you financial advisor as they will know your personal circumstances. We also recommend you engage the services of a Solicitor to aid in the legal side of the transaction.
 
Disclaimer: The information contained in this article has been carefully compiled and is not intended to be treated as a warranty or promise of the correctness of information.