WHY BRISBANE. WHY NOW
10 FACTORS SHAPING BRISBANE'S COMMERCIAL PROPERTY INVESTMENT OUTLOOK Brisbane is outperforming nationally and ranking among the strongest office markets across the globe. Strong rental growth, attractive relative yields and Queensland’s structural growth are strengthening its position with global capital.
WHY BRISBANE? 01
02
SOUTH-EAST QUEENSLAND IS SCALING RAPIDLY Around one million additional jobs are expected across South-East Queensland, deepening the region's occupier base.
POPULATION OUTPERFORMANCE
Queensland's population growth continues to outpace Australia , expanding the long- term demand base across property sectors.
03
04
A BROADER ECONOMY
INFRASTRUCTURE INVESTMENT More than $119 billion of investment extending beyond 2032 is supporting connectivity and long-term growth.
$24BN
combined real GVA growth from professional services & finance by 2035, the core office-occupier base.
WHY BRISBANE STANDS OUT? 05 19% RENTAL GROWTH 06 7.44% PRIME YIELD
Brisbane combines market-leading rental growth with a yield premium to Sydney, Melbourne and Perth.
Brisbane leads Australia's major office markets for rental growth and ranks second among major Asia Pacific office markets.
07
08
GLOBAL CAPITAL IS REENGAGING
INCREASED COMPETITION
Competition for quality space is expected to remain elevated, supporting further rental growth and Brisbane's continued outperformance.
Institutional transactions are providing evidence of renewed domestic and offshore investor confidence in Brisbane.
09 HIGHER BARRIERS TO SUPPLY
Labour shortages and higher costs in the construction industry are increasing the hurdle for new development
WHY BRISBANE NOW? INCOME GROWTH HAS MOVED AHEAD OF ASSET PRICING
Brisbane CBD prime office | Q1 2018 = 100
Net Effective Rents
Prime Capital Values
10 THE INVESTMENT WINDOW IS OPEN
Brisbane's income fundamentals have strengthened faster than asset pricing, creating a distinctive entry point in the cycle.
BRISBANE'S OUTPERFORMANCE IS ESTABLISHED. THE NEXT PHASE OF GROWTH IS YET TO BE FULLY PRICED.
CONTACTS
BEN MCGRATH Managing Director QLD & Director, Capital Markets QLD ben.mcgrath@cushwake.com
JAKE MCKINNON Associate Director, National Research jake.mckinnon@cushwake.com
cushmanandwakefield.com
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