Property and Infrastructure Specialists

Queensland’s property outlook cautiously optimistic

APP’s industry forum in February posed the topic “Queensland 2019: Hot or Not?”. A packed house was there to hear from guest speakers Luke Dixon, Head of Research, Real Estate, AMP Capital Real Estate and Gene Tunny, Economist and Author, shared candid views which could be best described as cautious optimism, with a number of caveats around migration, the resources sector and the national economy.
Queensland’s property outlook cautiously optimistic

In reviewing the Queensland market, Luke and Gene agreed the resources and tourism sectors were shaping us as strong performers - with a number of checks and balances across the remainder of Queensland’s economic landscape. Whilst Queensland is expected to experience the strongest economic growth over the next five years after Victoria, business confidence in the Queensland economy has declined they said.

Across the sectors, Luke said that retail remained strong in the leading regional centres but not so much in the sub-regionals. He said the Brisbane CBD vacancy was at a 5-year low and rents have stabilised but incentives are still at record highs. Whereas industrial demand levels are at a 10-year high, the traditional industrial sectors such as manufacturing and construction continue to drive underlying demand for the sector as it gradually transitions from blue collar to high tech industrial industries.

The two speakers diverged with regards to infrastructure: a circa ~$43bn in construction projects committed over the next 6 years was a positive but Gene maintained the pipeline was only flowing not gushing.

In summary, Luke Dixon suggested investors can expect higher returns from Brisbane’s property market as Melbourne and Sydney markets cool, with yield spreads between Sydney/Melbourne versus Brisbane narrowing across most categories in 2019.

Gene Tunny summarised the Queensland market as ‘lukewarm’ with a tepid infrastructure pipeline, though tourism, mining, and health/social assistance sectors will be hot.

Our presenters have kindly agreed to share their presentations which are available for download below, however remain the property of the respective authors.

Feedback from the forum was overwhelmingly positive and we are looking forward to hosting more in the future. The photos from the event can be viewed here. Please contact Ross Elliott for further information or to express your interest in attending our next industry forum.