Urbis Think Tank
Queensland sunshine set to spread to the property sector
Content provided by Malcolm Aikman
The Queensland economy is in the midst of recovering from the GFC and natural disasters. The overall trend is positive for Queensland over the next 5 years due to the expanding resource sector, in spite of some uncertainties. Property is expected to benefit from this growth.
Apartment construction and commercial property expected to grow in SE Queensland
Urbis forecasts the High rise residential (multi-unit apartment) sector to return to strong growth mainly driven by solid population growth, an undersupply of housing , growing preferences for inner city life and high density living, and historically low home loan rates.
The commercial market in Queensland is also recovering due to economic growth, the reconstruction of flood-damaged buildings. increases in white collar employment in SE Queensland, falling office vacancy rates and the booming resource sector.
Strong conditions for property growth in northern cities
Urbis has also identified Gladstone, Mackay and Townsville as having very good prospects over the coming years.
Gladstone is being driven by big local development projects. Local population growth, high rental yields, low vacancy rates and development opportunities are expected in the property sector.
The Mackay 200k Planning Scheme is expected to drive growth and development, as the Council prepares for the region to be home to 200,000 people by 2031. In addition, the booming mining industry strengthens the local economy and drives solid population growth.
Townsville grew rapidly from 2002-2009 and has a very healthy economy which is set for a second growth spurt, underpinned by solid population growth, relatively low residential vacancy rates and solid yields.
After struggling for the last couple of years since the GFC, Queensland may well be set to return to its moniker of “Beautiful One Day. Perfect the Next”.