Why is the real estate in Brisbane, Australia’s third largest city, being revalued?

Why is the real estate in Brisbane, Australia’s third largest city, being revalued?

Real estate prices in Brisbane, Australia’s third largest city

Brisbane, Australia’s third largest economic city. It is the largest economic city in Queensland, with a market size of about 2.2 million including neighboring areas, a growth rate of gross domestic product of around 3%, and the number of real estate transactions in the state is by far the largest. It is a metropolitan area boasting stable growth with a real estate price increase rate of 3% to 5% and a real yield of 3%.

 

Brisbane is a little-known city name in Japan, but it may be chosen as the venue for the 2032 Summer Olympics around July of this year and may become famous.

 

Now, the city’s real estate is being re-evaluated and attracting attention among real estate investors.

 

The reason is that Brisbane properties are cheaper to buy than real estate in downtown Australia, Australia’s largest economy, Sydney, and Melbourne’s second-largest economy. In other words, there are many properties with low entry levels in terms of investment amount.

 

 

I think Sydney and Melbourne are the first cities to be mentioned when it comes to real estate in Australia. Why?

 

Simply put, Sydney and Melbourne tend to be “speculative” in the real estate market. At one point, a large amount of China money rushed in, real estate prices in Sydney and Melbourne rose sharply, and domestic speculators (including investors) took advantage of it. It was criticized that it was not accompanied by.

 

After that, capital outflow regulations in China came into effect, and cooling major measures were taken in Australia, and real estate prices entered an adjustment phase.

 

It may seem surprising, but it’s no exaggeration to say that the 2017-2019s were a time when real estate prices across Australia fell and the new Corona was finally out of adjustment. Sydney, Melbourne What was Brisbane’s real estate market when the real estate market was bustling with speculators?

 

In fact, there were no major fluctuations, and prices rose as usual, that is, under a solid market. Looking at this graph, we can see at a glance that the extraordinary rate of price increase in Sydney and Melbourne was actually possible by “speculators”.

 

 

The brown graph line shows Sydney and the green graph line shows Melbourne. Prices peaked in 2017 and then declined into 2019.

 

On the other hand, the purple graph line showing the price transition of Brisbane did not change significantly and increased slightly. Even during the adjustment period, it started to rise after a slight drop.

 

What we can see from this chart is that while Brisbane’s real estate prices are stable, it may be a less tasty market for speculators.

 

As an aside, the price adjustment of orange Perth has not stopped, and it has fallen at a stretch. There was another problem inherent in this (simply partly due to the sudden cooling in capital investment associated with the resource boom).

 

Although the introduction has become long, as shown in the graph above, investors’ minds have been reset as past price changes become clear, and stable real estate is revalued rather than markets with high price fluctuations. There is.

 

Brisbane’s real estate is attracting attention because it is Australia’s third largest economic city, but its entry level is low and investment is low, and future growth can be expected due to future economic growth. The point is that asset formation can be expected in a healthy market.

 

By the way, the real estate price in Brisbane is worrisome, but according to the data dated March 31, 2021, the median real estate value is

 

  • Sydney: $ 928,082 (approx. 78.8 million yen)
  • Melbourne: $ 736,620 (approx. 62.6 million yen)
  • Brisbane: $ 548,260 (approx. 46.6 million yen)

 

Brisbane has a median of about 40% lower than Sydney and about 25% lower than Melbourne. Even today, there are many properties in the 40 million yen range in central Brisbane.

Source: Core Logic

 

Once again, Brisbane is Australia’s third-largest and largest economic city in Queensland, with low entry levels, stable price increases, rent income and real estate in Brisbane with potential for further growth. There is plenty of room for investment to consider.

Eight features of Queensland’s capital, Brisbane

Below is a brief summary of eight features of Brisbane for your reference.

 

◆ The capital of Queensland, the largest economic city

Brisbane is Australia’s third largest economic city after Sydney and Melbourne. All Queensland’s economic activity revolves around the city, and the city’s economy is growing every year, especially with the recent expansion of exports of mineral resources and agricultural products. As the city is close to the rapidly growing Asian countries, further growth is expected in the future.

 

◆ Convenience in the city center The transportation network unique to the city is enriched

Public transportation by bus and train is well developed around the city of Brisbane. You can also take a ferry to and from the towns and residential areas on the opposite bank of the Brisbane River, which runs through the city. It is very convenient to get used to the route map that looks complicated at first glance, and you can enjoy it not only in Brisbane city but also in the suburbs.

Brisbane River (* The photo is an image / PIXTA)

 

◆ Educational city A city crowded with 40,000 students

Brisbane is Queensland’s largest economic city and a city with around 40,000 students. There are many educational institutions such as private universities, vocational schools, and vocational training schools. In particular, universities have a high level of education, so many people from other countries study abroad every year. Many university students and researchers from Japan are also studying, and it boasts the highest level of education that represents the state.

 

 

◆ Cultural City You can enjoy various performances

Brisbane is also highly regarded as a cultural city. There are museums in the city where you can go to see performances by ballet companies, operas, orchestras, and watch contemporary theater. One of the ways to enjoy it is to collect information on the performance information on the website in advance, stay in Brisbane according to the schedule, and appreciate it.

 

◆ Rich food culture There are dishes from various countries

Brisbane is the largest city in Queensland and has a rich food culture. There are top-class restaurants, famous cafes, Japanese restaurants, ramen shops, and Chinatown in the city, so you can easily enjoy dishes from various countries. The weekend bustle of restaurants and cafes along the Brisbane River in the city is worth a visit.

 

◆ Medical care is also substantial Many Japanese live

Many Japanese live in Brisbane. Medical interpretation services by Japanese people, dentists, general practitioners, etc. are also substantial, and public organizations include the Consulate General of Japan, the Japanese Association, Japanese Language School, and the Japanese Chamber of Commerce. There is also a Japanese food store, so you can stay for a long time.

 

◆ It is a city where nature and urban functions are in harmony.

There are many condominium tower condominiums in Brisbane that are convenient and have a good view. The Brisbane River, which flows slowly through the city, and the national park in the distance are so calm that you will forget that you are in the city. There is also a property in front of the station, so the convenience is perfect, and it is the perfect environment to fully enjoy the city life.

 

◆ There is a direct flight from Japan

There are direct flights from Narita Airport and Haneda Airport to Brisbane International Airport (however, as of April 2021, it is suspended due to Corona).

 

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