Kritsanun Tipkamjaroeng, Supalai Research Center

The economy of Queensland is currently entering a recovery phase following a downturn caused by the mining boom. In the third quarter of 2017, Queensland's demand increased by 2.7%, marking the first time in three years that there has been growth for five consecutive quarters.

A survey by Jones Lang LaSalle (JLL) found that Queensland's economy grew by 3.8% and is expected to continue growing for the next four years, compared to just 0.2% growth last year. Additionally, employment in Queensland increased by 4.1% compared to 2017, surpassing Victoria and New South Wales (3.7% and 2.3%, respectively) and 2.8% compared to other states.

The Australian Prudential Regulation Authority (APRA) has implemented policies to limit bank lending for investment purposes to reduce the number of investment purchases and increase the number of individuals looking to buy property for personal residence. Therefore, it is expected that approval numbers will remain stable, and construction will slow down, leading to a decrease in employment rates. However, the government still has plans for infrastructure investments, which will create more jobs in the future.

  • The graph shows that over the past two decades, interstate migration to Queensland has remained below 40,000 people, which was the peak in 2002.
  • However, it has been steadily increasing since 2014. At the same time, the ratio of Brisbane housing prices to Sydney has also risen, indicating a positive trend in Brisbane's housing market.

In 2018, the real estate market in Brisbane was performing well, despite a significant supply remaining. The value of residential properties continued to rise. Employment across the state was growing rapidly and outpaced other regions, leading to the highest influx of migrants from both domestic and international sources in three years. Thus, the increased migration rate signifies a higher demand for housing, making it a highly potential residential market.

Brisbane has laid a solid foundation for infrastructure to support future growth, instilling confidence in foreign investors to choose Brisbane as their investment destination. Additionally, there are supportive factors being developed through government and private sector initiatives, including several mega projects aimed at boosting tourism and stimulating the economy. It is anticipated that once completed, these projects will attract a significant number of tourists and investments to Brisbane, such as:

Cross River Rail is a major rail project crossing the Brisbane River, which will enhance the transportation system in Southeast Queensland. The underground route will pass through the river and Brisbane's central business district (CBD), connecting the northern and southern areas of the CBD, making it easier for residents and workers to commute. This project is expected to create 1,500 jobs.

Queen's Wharf is a billion-dollar project that will be a new entertainment hub, one of the largest in Queensland. It is expected to create 2,000 jobs during construction and an additional 8,000 jobs upon completion.

Brisbane International Airport second runway is the largest aviation construction project in Australia, featuring a runway system that can double passenger capacity, expected to create 2,700 jobs.

 

Herston Quarter redevelopment is a world-class health center that will become a new landmark in Brisbane, creating 700 jobs.

Brisbane Showground regeneration is the largest land development in Australia, supported by the state to develop a convention center and exhibition space for global events, creating over 2,000 jobs.

Brisbane Metro is the development of a high-frequency public transport system that will reduce bus travel times in the CBD and improve services to the suburbs, expected to create 7,000 jobs.

All these developments will enhance Brisbane's economic potential and will benefit the projects that Supalai is already investing in the western part of Brisbane, as well as the projects that Supalai is planning to invest in the northern part of Brisbane.

Supalai's investments in Australia have been successful in every project due to thorough research on all relevant fundamental factors as presented above.

Thank you for the information from Supalai