Why Hasn't Brisbane BOOMED

Discussion in 'Property Market Economics' started by MTR, 28th Dec, 2016.

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  1. Perthguy

    Perthguy Well-Known Member

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    Even in Winter? I'm in Perth and I love summer but winter is killing me! :mad:
     
  2. JDP1

    JDP1 Well-Known Member

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    Yo
    And quite a bit of engineering and mining operations.. Bhp, Rio, Anglo American, peabody supported by engineering services like Jacobs and aurecon...
    But still...I'd agree with some of the views above...it's still country townish compared to Syd and Mel.
     
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  3. Phase2

    Phase2 Well-Known Member

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    Perth's climate is terrible. I don't know why everyone thinks it's great. Late spring, early summer are nice, and so is late autumn. That's it. Otherwise it's either too hot or too wet/windy to be outside.
     
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  4. Whitecat

    Whitecat Well-Known Member

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    Yes but historically in the long run not so relatively cheap. There was even a point in time not that long ago where Brisbane was more expensive than Melbourne
     
  5. Lacrim

    Lacrim Well-Known Member

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    Yeah I know.

    But Melbourne has left Brisbane for dead in the last 10 years and I doubt that gap will ever be bridged.

    Up until 10 years ago, Brisbane was more expensive than Perth. That relativity, I feel, will repeat itself provided the mining boom doesn't make a resurgence.
     
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  6. Whitecat

    Whitecat Well-Known Member

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    That was a very temporary overtake of Melbourne of course Brisbane will always be the third most expensive city in the long run but it won't be half the price of Sydney in the long run
     
  7. brandontp

    brandontp Active Member

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    I purchased a nice clean 900sqm corner block in Ipswich April last year with the intention of putting a GF on it. However, due to a few personal reasons didn't proceed with it and only started looking into it again recently.

    I just found out from a local PM, however, that the vacancy rate in area is currently hovering around the 8% mark(?!?) and so am reconsidering the GF idea. The block is also suitable for a subdivision/build so am carrying out due diligence into that as well at the moment.

    The annoying thing is the property has seen next no NO growth over the last year. RPData's auto valuation report spits out the same figure as it did last year. I wasn't expecting double digit growth ala Syd/Melb or anything but pretty much zilch? Fairly disappointed tbh!
     
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  8. sash

    sash Well-Known Member

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    Mate good on ya for being honest...a lot of people (includes moi) went to Brissie at the expense of Melbourne. I did go back to Melbourne...but overall Melbourne has performed better.

    I still think Brissie will do ok...but nothing like Sydney or Melbourne...and only areas that are now lower socio...

     
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  9. brandontp

    brandontp Active Member

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    Lol I'm not sure why anyone would be dishonest about the actual state of their investments. The more honest you are the higher chance you are able to correct-course.

    Someone in another thread just showed me how to check for vacancy rate via sqmresearch.com.au though and it turns out vacancy rate for my suburb is actually 2.1%! It appears my property manager "mistakenly" added an additional 6% in order to convince me to drop the rent...unbelievable! :mad:

    Anyway, the attraction of Brissy vs melb was the lower entry price but as they say you get what you pay for! :(
     
  10. hobo

    hobo Well-Known Member

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    "Ipswich" is not in Brisbane, mind you....
     
  11. MorganHB

    MorganHB Well-Known Member

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    Sash, do you think the same would still apply for the Moreton bay region?
     
  12. See Change

    See Change Well-Known Member

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    IMHO , Ipswich won't move up much untill places like Logan and Goodna have moved up more strongly.

    We bought three in Ipswich around 18 months ago and probably around 5-10 % up so far , but the reality is that you can never fully predict when the really strong periods of growth will occur .

    The ongoing growth in Sydney and Melbourne continues to surprise everyone and I don't thing the really strong growth in Brisbane will occur until every one thinks that Sydney has peaked , not that it should have peaked .

    There are more and more people positioning themselves in places like Brisbane , Adelaide and tassie .

    At the moment , my observation is that Hobart is closest to lift off though ,a while ago , I would have thought that Brisbane would have gone before Hobart , but Hobart is a much smaller market and positioned closer to Melbourne and Sydney .

    I see no reason why Brisbane won't boom at some stage , but it's just a matter of being patient .

    Last cycle Brisbane was around 5 years behind Sydney . Sydney didn't take off until late 2013 .

    Cliff

     
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  13. sash

    sash Well-Known Member

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    Lol...I certainly hope so...I have 4 there... :D
     
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  14. melbournian

    melbournian Well-Known Member

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    Out of the list only Suncorp is up there in terms market cap - it needs like a Westpac or CBA to move it's HQ operations there. Top ASX20 companies in terms of market cap only 2 out of 20 HQs are in Brisbane.

    upload_2017-5-11_11-9-41.png

    Say someone wanted to travel "Garuda" on Thursday 25th May to Brisbane from Jakarta - they're either stop in perth or Sydney first before heading off.

    upload_2017-5-11_11-12-4.png

    upload_2017-5-11_11-13-42.png
     
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  15. MTR

    MTR Well-Known Member

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    one word......................... IMMIGRATION
     
  16. MTR

    MTR Well-Known Member

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    Same with Melb, there is or was lower entry levels only 17 km from CBD, they no longer exist think we probably seen at least 40%+ increases. By lower levels I am talking $400K+
     
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  17. 733

    733 Well-Known Member

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    Population growth into Queensland has slowed down coupled with huge apartment over supply...over the past five year professional salaries have pulled back...getting less now than five years ago from advertised salary ranges and conversations with my ex colleagues in professional industries ....
     
  18. MTR

    MTR Well-Known Member

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    So why do investors keep posting Brisbane looks good? When what you have stated is the exact opposite
    I keep hearing its cheap, but you need much more than this, Adelaide is also cheap
     
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  19. melbournian

    melbournian Well-Known Member

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    what they need is 5 of the top ASX20 companies by mkt cap move their HQ bases there and start hiring the likes of people, in procurement, legal, marketing, HR, IT, accounting, finance and that will kick start people moving to Brisbane. It also needs universities with twinning or matriculation programs with overseas universities to draw more students to areas that will grow and also no point having a university not centrally located (as even "monash uni - top 3 universities with number of international students Auswide" will be closing down their Berwick Campus - as who wants to be studying in Berwick seriously?)

    With Melbourne or Sydney, even in geelong ppl can still stay there and work in CBD and so with ppl in mt Druitt working in Sydney CBD. As i was a rook in interstate purchasing I honestly was intrigued by Brisbane after that many posts by investors and did think it was that great - and went to investigate buy (post on booms have been going for 2 years now) but didn't go for it that time around.
     
  20. zlatan9

    zlatan9 Well-Known Member

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    I agree - I don't fully understand why the demand is there other than investors thinking a piece of land is much cheaper in Brisbane than it is in Sydney and Melbourne.

    I still see more young people moving to Sydney / Melbourne / overseas for work than incoming.

    There's talk about growth in investor buying in Brisbane but I wonder if they are buying despite increasing rental vacancies?

    But then again, why is Hobart spiking? Caused solely by downsizers and retirees?
     
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