Planning restrictions are make or break considerations when it comes to defining an area’s scope for new development and growth. A sudden change to such government policies can really change the face of an area’s investment case for the better.
Our research in the Australian city of Brisbane turned up some interesting zoning changes that we think present investors with a real opportunity to achieve excellent returns.
Cannon Hill in Brisbane’s Inner East district already has a lot going for it, but a key piece missing from the puzzle has been the right opportunities to enter the market. We tend to favour recommending investment in low-maintenance apartment-style housing in order to increase investment potential, and although demand for this type of development has been high in this part of Brisbane, supply has been lacking.
As you can see from our new infographic, above, this is about to change. The Brisbane government has rezoned a key area of Cannon Hill, replacing several blocks of low-density zoning with several medium-density and commercial areas.
Developers are already moving on this and will soon be able to present investors with off-plan opportunities to enter this growing market with modern, low-maintenance apartments designed to appeal to the growing young demographics that are increasingly looking to move into the area.
The relatively small area allocated to this sort of housing, marked red on the above graphic, means opportunities to take advantage will be limited, but it also means that supply will certainly be low enough to see prices rise considerably in the face of ever increasing demand.
The significant amount of space allocated for new commercial developments, marked blue on the above graphic, is a further boon to investors, who will see the value of their properties increase as more amenities and job opportunities are created on the doorstep of their investment.
You can read more of our general thoughts on the potential of the Cannon Hill area in our new on the area.