QLD MARKET OVERVIEW
QUEENSLAND
QLD Market Overview with Justin Bond What are the key market trends occurring throughout 2022 in your region?
to see a greater focus on income returns, keeping Queensland assets at the forefront of investing. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? At the institutional level It was noticeable that the travel restrictions of 2020 & 2021 impacted on the number of offshore buyers in the Brisbane market. For the CBD we went from offshore buyers purchasing over $1billion in 2019 down to $380 million in 2020 and $457 million in 2021, with a boost at the end of the year. REITS and private investors have also been less active with wholesale funds and syndicators more prevalent across the CBD, Fringe and metropolitan markets. For smaller assets this trend also translated with private interstate buyers unwilling to purchase assets sight unseen and as such there has been a marked lift in inspections and active interest since the internal and international borders have re-opened.
Demand for Queensland commercial property remains high with minimal
lockdowns sustaining small business and the Federal government fiscal support engendering strong consumer and business spending. The region is set to see sustained infrastructure development, underpinned by the current Cross River Rail project and the upcoming Olympic games. Despite the restrictions on movement the 12 months to Sept 2021 saw net interstate migration into Queensland above 40,000, highs not seen since the mid 1990s. Brisbane also bucked the trend of capital cities losing population to regional areas, with inflows of 21,870 in 2020-21. This is a testament to the job opportunities and lifestyle benefits available in South East Queensland and will continue to drive infrastructure investment and property demand. What have been the fundamental drivers of demand amongst buyers? Investors are seeking exposure to markets with long term growth prospects which the Qld market provides. Additionally, there remains somewhat of a yield premium for Queensland assets when compared to southern markets. These higher income returns are attractive to investors seeking diversification in their portfolio and exposure to growth. As the pendulum swings from capital growth driving returns, we expect
JUSTIN BOND PARTNER KNIGHT FRANK QUEENSLAND
What types of assets are most in-demand given the current environment?
There is demand across the full spectrum of asset types. Office assets have remained sought after despite initial fears that office demand would be impacted by a structural shift towards working from home, with a central office space still seen as an essential hub for creating and maintaining culture in the workplace. Retail assets, particularly
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