Brisbane and the rest of South East Queensland tipped to generate more jobs. This will result to increase in property demand and prices. SEQ’s property market is expecting tremendous property investment growth that offers better values for short-term and long-term investments.
Brisbane’s Employment Market and Business Sectors Remain Strong
Brisbane comes out unscathed after business confidence deteriorated in 2019 throughout Australia. The city also continues to shows great signs of growth. Business confidence is strong with a number of new infrastructure projects in SEQ like the Victoria Park revamp. JLL Australia’s Andrew Ballantyne said, “In another sign of confidence in the Brisbane CBD office leasing market, the resource sector is in expansion mode.”
According to JLL’s latest report, Brisbane recorded a net absorption of 28,900m2 in the last quarter of 2019. Then, 44,900m2 over 2019, higher than the 20-year average of 27,100m. Healthcare, education and training, scientific services and construction are key industries in driving the economy not only in SEQ but in the entire state of Queensland.
One of the fastest-growing industries in Brisbane is construction. There are several job vacancies mainly Construction Managers, Structural Steel Construction Workers, Plumbers and Civil Engineers.
Just recently, the Brisbane Metro fleet and infrastructure project commenced and is believed to create at least 165 jobs in construction. Another 185 new job vacancies upon its opening.
The Department of Jobs and Small Business is predicting more construction jobs in 2020. Another strong indicator for this expected development is the growing numbers of developments, residential, commercial and integrated projects throughout SEQ.
What do all of these mean for Investors?
Brisbane’s strong employment market will result to increase in property prices that will affect other regions in the SEQ. More people with jobs means more households able to service a mortgage. Clients are also taking advantage of favourable home loan conditions like record-low interest rates.
Low and middle income earners are also more confident to acquire a home loan with the First Home Loan Deposit Scheme or FHLDS. This program will allow people to apply for a loan that requires a deposit of as low as 5 per cent (lender’s criteria apply).
There is also a spike in interstate migration heavily influenced by employment and improved lifestyle here in the SEQ. All of these factors provide investors better grounds and resources to ensure monetary value for both short and long-term investments. Educated investors are now taking the time and effort to determine the best area to invest in as many suburbs are offering great value.