Why Hasn't Brisbane BOOMED

I think are talking about two different concepts the New South Wales public service and Education Sector employees a heck of a lot of people also.
I think the concept of having unique employers is quite important. We do need a few more head offices up here or more local unique businesses starting and growing

 

Yup.
And a big reason why Brisbane is much cheaper than Sydney.

 

I'm guessing.. But I don't think there will be asx300 HQ moves to Brisbane . Respective governments in Sydney/Mel will do everything they can yo keep them there.
What I do think will happen is more international companies looking to either establish or expand Australian operations will see Brisbane as attractive given lower cost of operation yet still having a relatively decent pipeline of skills yo choose from given the Brisbane employment market includes a lot of gc as well (as evidenced by the masses of gc people who travel yo Brisbane for work at the moment). Together, thats 3.5 Mil and represents a fair labour and skills pool. Of course not as big as Mexico, but both are growing. Give it another 7-10 year and combined will be > 4 Mil and that too will likely have better transport links between the two as.well. Buy now when it's still cheap compared to salaries. It will get progressively more expensive. RE is a long term asset, and you want to get in when prices are low but the are is on an upward growth phase. Hold for at least 10 years and then we will all be laughing at sydneysiders.!!!

 

Well ok think logically - would a senior civil engineer in BHP or RIO TINTO earning 150-160K per year over say someone who works in a restaurant (say standard chef) earning 70-80K per year have more buying power or budget to buy more expensive properties. One could possibly buy a 1 mil and possibly couldn't reach that level without a sizable deposit.

For eg. a senior SAP consultant working in Woolworths HQ would earn close to 200K as opposed to a Woolworths store manager in Darwin.

San Francisco (Software Or IT consultants Google, apple, uber, Microsoft - all can earn USD200-300K per year) and New York (Wall Street Trader, finance workers could earn 200-500K per year on even more with bonuses). All you have to do is watch Million Dollar listing New York and see the multitude of exp properties and ppl who have the money to purchase.

If you have 3 guys who have the ability to buy a million dollar property? that is going for auction at 700-800K. would the price have more probability to go up to above 800K as opposed to 3 guys who can only afford 800K.

same logic applies to the Mining towns in WA as ppl had a lot of money (working in the mines) to spend and hence why the property prices jumped during the mining boom.

 

I am pro-boom as you know

 

I posted the following in another thread but its probably more relevant to this thread

Brisbane's ride is probably over the half way mark. It started in late 2013/ early 2014. Its an unusually long and slow upward cycle. Its so slow that many on here are complaining that nothing has happened which couldn't be further from the truth.

8 Flower Street, Woolloongabba, Qld 4102 - Property Details -sold for 460 in 2013 would sell for over 700k now
83 Billan Street, Carina, Qld 4152 - Property Details - sold for 360 in 2013, would sell for about 530 now
125 Melville Terrace, Manly, Qld 4179 - Property Details - sold 465 2013, now would fetch 650
33 Livermore Street, Redcliffe, Qld 4020 - Property Details - sold 261 in 2013, now about 380
134 Trouts Road, Stafford Heights, Qld 4053 - Property Details - sold 375 now would be 530

ANyway you get the point, most parts of Brisbane -whether inner or outer have seen close to 50% growth from Late 2013/ early 2014 until today. So maybe another 50% from here if we are very lucky

 

Those who got in 2-3 years ago in the 7-12km rings with homes, land content and/or dev/cosmetic potential are set up very best for the next 3-5 years I would say. And then there's all the other buyers who will rank on a spectrum of good, decent and poor as their purchases happen past this last 12 months mark IMO.

 

Any examples for south side?

 

Excellent, thanks for links
So why have these properties had excellent growth? While other markets in QLD lagging behind?

 

OO demand
some ares are very slow to gentrify though

 

Southside, all middle/outer BCC area.
I haven't looked up any sales from 2012/13. No need to, I have an idea what has happened or hasn't. No boom but 35-50% return in 5 years is hardly chicken feed.
Includes Holland Park, HPW, Macgregor, Carina, Sunnybank Hills, Sunnybank, Carina Heights and coopers plains. Plenty of other examples.


View attachment 15462
Carina Heights

 

That's because we've had a **** state government for the last 10 years that have done nothing to attract them.. Bligh, Newman, Palauseless.. They've all sweet fa for business development in the state, and attracting medium to large scale business, listening to their needs, or offering incentives. It shouldn't even be that much of a hard sell.. It was just easier to ride the tails of the coal royalties while it was easy money and not bother to build solid foundations for the future.

When Brisbane was booming Beattie was doing a lot to attract people and business to QLD, and it was working.

 

If you look closely at the gains. it's about average 45% growth over 4 years. That is 11.25% increase per year. It's hardly a Boom in your books.. but most here would be happy with this gain..

Also,
Me thinks the "now about" and "now would" can not be verified unless proven sold.
For example:
134 Trouts Road, Stafford Heights, Qld 4053 - Property Details - sold 375 now would be 530

Versus

281 Kitchener Road, Stafford Heights Qld 4053, sold NOW 479k..me thinks it's comparable sale, but if you ask me I would take this house than Trouts Rd for 530k

me thinks Brisbane's done about 30-40% in the last 4 years...

 

yes, i would agree. I too have mentioned such in other posts- the mining royalties were good and easy, so they didnt bother with setting up the place for the future with non mining. I kid you not, all the politicians thought about was when the next shipment would sail from gladstone to china in those days.

 

this equates to a 7-10% increase per year.

I am not greedy.. if it can do the same growth in the next 5 years it means a 70-100% increase in 10 years. me will happy with this overall gain. Just get too nervous with this Sydney 30% per year gain and then god_knows_happen_next adrenaline situation.

 

QLD?

Gold coast - oversupply issues, high dollar = low tourism
Sunny coast - havnt monitored but its not really cheap so cant have done too badly
Mackay - boom and bust on coal, can throw rockhampton, moranbah and about 20 other smaller towns in
Gladstone - had a construction boom, curtis island etc but that came to an end
Cairns- tourism down
Bundaberg - went under water
Yepoon, cardwell, inmisfail - smashed by cyclones
Mount isa - century mine winding down
Weipa - didnt bust but proces have come off the boil as its a mining town (aluminium)
Townsville - went mad developing residential 10 years ago when they were booming and have had vacancy problems since, also suffered from resource downturn
Toowoomba - boomed on the back of the surat basin csg exploration and development.
Has come off the boil whilst the towns at the epicentre - chinchilla, miles, roma are stuffed

Basically any town that had anything to do with mining was over developed for a workforce that was never going to hang around long term. To rub salt in the mining companies built camps making the situation twice as bad.
High dollar - low tourism and catastrophic weather events and pretty much every area in Queensland has had it rough at some point in the last 7 or 8 years

 

So would I, the market overall hasn't done this well though, the suburbs with an Asian influence and their neighbours have performed well. The middle ring has shown most of the growth IMO. The greater Brisbane figures (showing a more miserable 3-4% growth) have been dragged down by some areas especially certain Ipswich city council suburbs like Redbank Plains etc.

 

For me i don't care so much how the market overall is doing, just care about the areas i did my DD on and invested in. Many areas will be less than stellar in BCC for a long time...while other markets will do very well. Just need to choose the right locations and type of stock imo.

 

Interestingly houses in Rocklea are selling for 400k and over now.
Could pick them up for 200k up til 3 years ago

I wonder how many people buying there dont know the history of the suburb?

 

Agree that international companies looking to expand will find Brisbane very attractive due to lower costs. A company like amazon setting up in Brisbane would be huge, they will have a DC set up there either way but if they choose to have a centre of operations, surely this would lure skilled professionals up to brissy, attracted by good job prospects and cheaper housing.

Amazon has made mention that Brisbane could be a major centre of operations:

http://www.couriermail.com.au/busin...s/news-story/800c758d41d41f38dc537ab8d336c90e