Is the future of Queensland skyward?
The construction pipeline in Queensland continues to be filled with apartments blocks, demonstrating its popularity for property investment.
When designing the layout of a city, urban planners have two options: Do you build up, or do you build out? Apartment blocks, or suburbia? For us, it looks like the choice has been made in favour of the former. The Australian Bureau of Statistics (ABS) reports that a record number of dwellings are now under construction, and units are taking centre stage in Queensland.
A glut of construction
A lot of the building work is being driven by demand among investors.
According to the ABS, over $25 billion worth of construction was done throughout the nation in March, the majority of that being new residential builds or alterations. That's a significant increase from the previous quarter, as well as the previous year.
A great deal of this will be the result of Queensland approvals, which cracked over 4,000 total dwellings given the green light in May. About half of that was private-sector houses, with the remaining including a significant portion of unit approvals.
Considering how accessible units and apartments can be, even in the capital city of Brisbane, it's understandable why a nation so concerned with housing affordability would put their focus on these cheaper dwellings rather than detached houses. With so many construction projects either underway or waiting for financing, investors should be turning their eyes to this opportunity to build wealth (quite literally) from the ground up.
An economic strength
Meanwhile, Queensland has also secured its place as a region of solid growth, as the National Australia Bank State Update for July describes the strength of the current economy, mentioning dwelling investment as a particular economic focus. Furthermore, CoreLogic RP Data research analyst Cameron Kusher describes that a lot of the building work is being driven by demand among investors. Queensland is clearly proving to be a popular area for those who wish to put their capital into real estate.
One CoreLogic survey demonstrated that two thirds of the populace believed it is a good time to buy property now. With so many new dwellings on the way, coupled with the strong growth Brisbane and the surrounding areas has seen, is it time for you to get involved? Make sure you get in touch with the property mentors here at Think Money to make sure you make the most of your property portfolio.