Investors banking on Brisbane

Brisbane banking

According to Colliers, investments in Brisbane’s biggest commercial property markets have surged in the first half of 2022, picking up where it left off in 2021 with last year being a record year of transactions in the state.

Queensland is entering a dynamic new chapter in its evolution driven by population growth, a growing economy, a rise in innovation and demand for lifestyle and high growth precincts – as well as the state’s successful 2032 Olympic bid.

“Queensland has entered an era of growth with several economic and demographic trends distinctly demonstrating its long-term potential as a destination for investment and development activity through 2022 and beyond,” John Marasco, Colliers Managing Director of Capital Markets & Investment Services, says.

“We expect the recent tightening of yields to slow as the market reacts to the changing economic climate,” he adds.

He says investment in transformational infrastructure projects combined with good urban and town planning will not only address the current needs of the state, but work towards achieving the State and Brisbane City’s unique vision for the future.

Colliers’ research has found investment activity in Brisbane’s commercial property sector increased significantly in 2021 compared to 2020, with more than $1.4 billion worth of property bought in the CBD alone.

In just the first half of 2022, Colliers has seen a total of $5.0 billion in property purchased in Queensland, showing a robust start to the year.

The past 12 months have represented an unprecedented period for the Brisbane industrial and logistics sector as investment and occupier volumes reached new heights, and yields fell to record lows in all submarkets.

“While existing fundamentals such as e-commerce, infrastructure investment, and automation will remain key drivers for demand, population growth in Queensland is currently the strongest in the country and will amplify demand for warehouse space off the back of growing consumption levels,” Gavin Bishop, Colliers Managing Director of Industrial, says.

“However, fewer assets have been brought to market in 2022, which has constrained investment volumes,” he adds.

He says Queensland was the most active industrial market in the country in 2021 by number of assets to trade, however, investors are holding out bringing assets to market in order to capture the forecast uplift in rents.

Colliers says demand is expected to remain strong over the next 12 months, underpinned by strong occupier fundamentals which have improved substantially over the past year.

For more information on Colliers, click here.

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