Following the success of our first entry into the Brisbane property market late last year, in the form of Metro Property Development’s striking Broadway on Ann project, today marks the launch of our next investment opportunity in the city, .
IP Global Director Darren Mellis and a number of his investors were convinced by the strong investment case of Broadway on Ann and Brisbane in general, and Darren has shared with us his thoughts on investing in the strength of the Queensland capital.
Brisbane wasn’t a market I was overly familiar with six months ago. Before we launched Broadway on Ann I was very curious to learn more about the fundamentals and the reasons why our Investment team were so confident about Brisbane. Once I was educated on the investment case for Brisbane I was intrigued, and in the back of my mind the notion of investing in this project started to form.
The opportunity arose for a few of us to fly down to Brisbane to view the site and meet with the developer. Broadway on Ann is in Fortitude Valley, considered the dress circle of Brisbane, with its array of cafes, brasseries, high-end restaurants and boutique shops.
FORTITUDE VALLEY IS CONSIDERED THE DRESS CIRCLE OF BRISBANEDarren Mellis, Director - IP Global
This particular area of Fortitude Valley is also seeing a slew of major corporations relocating their headquarters from the city’s CBD to this part of Brisbane. This is partly due to the area’s proximity to the CBD – less than a ten-minute drive – but also because of the huge amount of investment going into the infrastructure of Fortitude Valley and Newstead.
A number of my clients invested in Broadway on Ann based largely on the above factors concerning the development’s specific location, including the low 0.8% vacancy rate among rental units in Fortitude Valley.
They and I also saw the value in the general strength of the Queensland/Brisbane economy. Jones Lang Lasalle released a report in 2013 in which Brisbane is forecast to show the strongest growth of any mature world city over the next eight years. With the economy doing so well, population growth in Brisbane is expected to be higher than any other Australian city, and the increased demand this will create will come up against the city’s structural undersupply of property.
BRISBANE IS FORECAST TO SHOW THE STRONGEST GROWTH OF ANY MATURE WORLD CITY OVER THE NEXT EIGHT YEARSDarren Mellis, Director - IP Global
All these factors point to strong growth in the property market of Brisbane for the foreseeable future, and Fortitude Valley/Newstead is in my opinion the right location for taking full advantage. That’s why I purchased a unit at Broadway on Ann, and am very confident that I’ll see strong returns from this investment, in terms of both yields and capital appreciation.