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SPOTLIGHT ON BRISBANE
Across Australia, Brisbane is acknowledged
as a lifestyle destination a diverse and
energised global city recognised as a leading
destination for business and investment,
major events and international education.
According to population projections,
the Brisbane local government area (LGA)
is set to increase by 9000 residents per
annum between now and 2031, equating to
approximately 174 new residents per week.
The most significant growth is predicted
to occur between now and 2021, with a
projected increase of over 12,000 new
residents per annum, or approximately
235 new residents per week.
Looking at actual figures between 2002
and 2012, the increase was just over 17,000
new residents per annum. This equates to,
on average, 331 new residents per week over
this 10-year period.
If we apply a rate of 2.5 persons per
household, this equated to a requirement
of approximately 132 dwellings needed per
week to accommodate this growth.
The Brisbane Population Growth vs.
Dwelling Approvals graph (on page 51)
indicates that the number of dwelling
approvals in Brisbane, despite an incentive-
driven upturn in 2007-2008, has continued
to decline in spite a consistent population
growth over the period 2002-2012.
Newly released Census data further
highlights the supply and demand imbalance,
suggesting an increase of 175,000 residents
between 2001 and 2011. Over the same period,
an increase of 57,800 dwellings was recorded.
At an average household size of 2.5
persons per dwelling, the demand based on
population growth was 70,000 dwellings.
This suggests an undersupply to the tune of
approximately 12,200 dwellings over the
10-year period to 2011.
The housing shortage, driven by
a sluggish development and building
performance within Queensland, and
in particular within inner Brisbane, has
been one of the main reasons behind tight
vacancy rates and increasing rental rates.
PROPERTY
KEY FUNDAMENTALS
The Brisbane LGA has strong fundamentals in place that are helping to drive the market
out of the trough and into the recovery and growth periods of the real-estate cycle.
These strong fundamentals are:
· Demographic: Growth and dwelling shift in key Gen Y demographic, influencing
demand for apartments and rental markets in inner-city locations.
·
Economic: Commodities boom filtering into Brisbane, privatisation of the Brisbane
Port and continued private and public investment into other key nodes will drive further
employment opportunities.
· Employment: Continued investment into the region will aid in future employment
prospects, promoting migration from interstate.
· Migration: Increase in population growth may drive further demand for dwellings,
advancing the supply and demand imbalance within the residential market.
· Development: Improved confidence and economic conditions may lead to further
investment and development, providing key infrastructure and amenities to support growth.
Residential Rental Apartment Rates