Growth in Brisbane hasn’t been as fast as expected in recent years. Would tighter lending be a driver and what is the current state of the Brisbane market?
Ryan: So, he’s heard some commentators mention that growth in Brisbane hasn’t been as fast as expected in recent years. Would tighter lending be a driver, and is this actually a positive for those accumulating? So, I know you’re big in the Brisbane market at the moment, Ben. What are your thoughts on the current state of it, and the growth that it’s had, I guess versus Sydney and Melbourne?
Ben: Look, I expected Brisbane to do better than it has in the last three years. Specific suburbs in Brisbane have done extremely well in the last three years. There’s some suburbs that have done between 20% and 40% growth in the last three years.
But on average, the marketplace, I think, has done 5% one year, 3% one year, and 2% one year. So, it’s under 10% over the last three years as an average.
What I’ve noticed is that in the last three months, a few things have begun to turn in Brisbane. So population, both international people moving to Australia as first-generation immigrants, as well as interstate migration has really kicked off.
So, you’ve got over a thousand people a week moving into Brisbane, which is the strongest population growth rate we’ve had in the city since 2006. So, I think that population has to be a positive thing.
The job situation in Brisbane still isn’t fantastic. It’s still not growing as quickly as the Sydney and Melbourne markets are.
I got an update from [inaudible 00:01:26] a number of weeks ago which said that basically looking at this month last year, and this month this year, that jobs were up 38%. Or job advertisements were up 38% in Brisbane based on the same time last year.
And that jobs had just, Australia-wide in terms of number of listings, just gone higher than they were pre the last year, say at the top of the last cycle. So, that’s got to be a positive thing for the Australian economy in general.
I think all around the world, those unemployment rates are dropping to historically low standards. So, things seem to be ticking away pretty well.
There are some suburbs in Brisbane now, which we’ve been buying in for clients, which have grown by between 10% and 17% in the last 12 months. That’s the first time I’ve seen double-digit growth in Brizzie.
Ben: So, that to me signifies the start for those suburbs of probably more meaningful growth. But again, there’s some areas in Brisbane that are still doing very, very average, and very flat growth of sort of 4% per year.
Ryan: Yeah, and so I think, to add to what Ben said, obviously, you’ve got one area, Brisbane, and how it performs. But then as Ben was saying, you’ve got individual suburbs within Brisbane as well, that are performing better than others. And so … sorry that’s just my wife texting me.
Ben: Yeah, [inaudible 00:02:48] me, Ben. You’re giving me a hard time with, what was that, 15% to 17% growth call.
Ryan: I know that’s crazy. But yeah, I just …
Ben: That’s good growth. Hey, I would be happy with some of that.
Ryan: That’s so good growth. But yeah, even if Brisbane’s struggling, often there’s good suburbs within the region. So, always, always do your research as we always say.
Well, I hope you enjoyed the answer to this question with Ben Everingham from Pumped on Property. We’re really having a blast doing these Q and A sessions with you guys. So, keep the questions coming.
If you’re at the point now where you’re ready to purchase an investment property, but you think you might need some help, then Ben is offering free strategy sessions to On Property listeners. Simply go to onproperty.com.au\session and you can book a time with Ben, and you can go through where you’re at, where you want to be, and what your next steps are to get there.
So again, that’s onproperty.com.au\session. Thanks so much for watching, and until next time, stay positive.