Strong quarterly growth and an increasing population have pushed the Brisbane property market into the spotlight, with investors and owner-occupiers clamouring to get in on the action
As industry experts predicted, the Queensland capital is surging ahead in the first half of 2007, with Brisbane property values increasing by almost 5% in the three months to May this year, reports Residex.
"There are a number of factors driving Brisbane's growth," says Brisbane Lord Mayor Campbell Newman.
"Some primary reasons include the rate of migration – from both southern states and overseas – to South-East Queensland, which is very high. Also, reports about increasing house prices and the need for investors to buy property have also spiked interest in property."
Newman says many visitors are attracted to the quality of lifestyle Brisbane offers, with the comparatively affordable cost of living underpinning the city’s "vibrant economy".
Real Estate Institute of Queensland (REIQ) chairman Peter McGrath believes the Queensland capital is attracting buyers who are "looking for value" in property that is relatively close to the Brisbane CBD.
"Brisbane’s middle ring eastern suburbs especially have performed very well over recent quarters, and this is likely to continue," McGrath says, adding that regional Queensland continues to perform well, with quarterly growth reaching almost 4.74% and an average rental yield equivalent to the state’s capital.
"The economic and population growth of regional areas such as Townsville and Thuringowa – and its subsequent impact on property prices – have excited investors and owner-occupiers alike in recent years," McGrath says.
"These regions have the most affordable housing in North Queensland… when you combine this with a growing economy and high levels of business confidence, the future looks very bright for these North Queensland twin cities."