Brisbane is being touted as the next growth city. The population growth plus the subdued market over the last few years is making a good case for some short to medium term capital growth. Inner city apartment buildings are popping up all over the central regions of Brisbane.
So will the demand equal the supply?
Now let’s take Fortitude Valley for instance, the suburb right next to Brisbane CBD on the Eastern side. FV has long been recognised as the nightlife mecca of Brisbane, with bars, restaurants and nightclubs taking up whole streets, creating the energetic lifestyle location that appeals to the younger demographics.
What else is to love about FV? Proximity to the CBD, strong public transport links, access to the employment zones of surrounding Newstead, Bowen Hills etc. the view from the higher levels works well too; the Brisbane river winding nearby. It is high and dry too, not having been touched by the disaster of the 2011 floods.
The buildings under construction and in planning are a study in one upmanship. They truly are magnificent examples of fine architecture. Some of the buildings would be like living in a 5 or 6 star hotel every day of the week, now we just need the maid service!
So, it is an up and coming suburb then huh?
It must be… Currently there are over 4587 residences in the planning stages in council, the vast majority of which (if approved) are expected to be delivered between 2016 and 2018. This is not including the estimated 1300+ that have been settled over the last 3 and a half years.
In the 2011 census there were a total of 3339 dwellings in Fortitude Valley at a density rate of some 4000 people per sq km.
So to recap the math, there are more dwellings planned in the next three years than there were in the suburb in 2011.
By end of 2018, pending council approvals, there will be approx. 8400 dwellings housing over 15,000 people – in excess of 10,000 people living per sq km.
That is some serious residential supply growth!
So will population growth and increase in supply lead to rental and capital growth? Build it and they will come? Or is it another Melbourne Docklands type of project where overzealous developers bring too much too soon and flood a premature market?