It is an exciting time for Australian property thanks to a modest to strong growth in many locations around the country – including Brisbane. While other sources might be singing songs to a different tune, it is a really hard pill to swallow when the facts show growth and point to nothing but a positive future for Australian property as a whole.

Sure there will always be good and bad points to discuss, but when it comes to the Australian property market (and economy for that matter), there are many people out there making a living off selling the ‘doom and gloom’. And many of us take the bait.

 But a fact is a fact. To set the story straight, we thought we would shed a few home truths about the current global, Australian and local economic situation – and what it means for property investors in the scheme of things.

ON A GLOBAL SCALE

US jobless claims are at near all-time lows

The US workforce is dramatically bigger than it was, however out-of-work assistance is at record lows. The data speaks for itself – and it does not get much better than that!

Non-manufacturing PMI (Purchasing Managers' index) jumped to 54.4

This number right here is economic ‘boom’ territory. The biggest sector of the economy, the services sector, accelerated sharply, while the manufacturing sector also improved. The big sample official PMI edged up from 49.6 to 49.7; this is a small increase, but a rise nonetheless.

China is anything but slowing down

New orders for manufactured goods are up by a healthy amount. Additionally, the Fixed Direct Investment results for 2015 indicate a very strong 6.4% growth. There was also a 9.5% jump in investment in high-tech manufacturing. All positive news here.

Lower global energy costs 

Sure this might have come from the fact that oil has crashed (only due to traditional oil producers deliberately driving prices lower to force new fracking producers out of business) driving lower oil prices, thus lower energy prices in general. However, lower energy costs is still a fantastic outcome for the world’s consumers and businesses alike.

Germany posted its strongest growth of 1.7% in four years

It might not be a lot but it is still a growth, and their strongest one at that, so it is all positive and that is what we want to hear. Nothing negative about that.

ON THE HOME FRONT

Un-employment rate steady at 5.8%

The latest unemployment data on our home soil suggests steady growth in employment is underway, further indicating that there is certainly light at the end of the tunnel.

Australian dollar remains low

Our low Australian dollar means Australian property looks like a total bargain in the eyes of foreign investors, who will have an ever-increasing influence on the Australian property market for decades to come.

LOCALLY HERE IN BRISBANE

Queensland's infrastructure spend is 75% higher than the national state average

From 2000 to 2010 Queensland’s infrastructure spend was 75% higher than the average of other states and territories, combined at $1021 per capita (Source: Queensland Infrastructure Plan, 2011). Not bad really in the eyes of an investor. 

Future plans have recently been announced by Lord Mayor Graham Quirk, for a $1.54 billion "Brisbane Metro" subway system, a first of its kind in Australia and great news for Brisbane investors. 

Several new CBD developments  

With a strong vision for the future, the Brisbane City Council and Queensland Government’s long-term commitment to invest in critical infrastructure (such as the Queen’s Wharf) continues to transform the city and the state, with the ongoing delivery of new road, tunnel and rail links to support the competitiveness of industry and business.

Brisbane booming thanks to lower AUD

Key tourist destinations (such as Brisbane) are benefiting from the lower AUD thanks to strong interstate visitor arrivals! More and more Australians are expected to holiday right here in their own backyard as opposed to venturing off overseas. Thankfully Queensland is one of the top tourism destinations in the country, proving that while things might be looking somewhat differently for other states, right here in Brisbane, the future is very bright.

So let us be clear, when we say “opportune times”, we mean exactly that. Amidst all the media negativity and scare tactics, fundamentally our economic situation is actually very strong, and prices are holding up – as you can clearly see.

Perhaps potential property buyers have been holding back? But just you wait. Once Australian’s start to catch wind of how good things actually are in the current economy, things are expected to shift quick smart. Very quickly indeed.

Thus pointing towards another price acceleration phase, especially here in Brisbane where things are already on the up.

 With so much to get excited about with the economy (globally and locally), now is an opportune time to get in on the front foot. Are you ready?

 If you are considering investing here in Brisbane, or growing your property portfolio, now is a great time to book a consultation with Hannah and the team. Call 0419 782 133 to make an appointment.