Buses shelter lagging Bris markets
Property owners along the Brisbane Metro route were winners in the 2018-19 Federal Budget with the Coalition's commitment to the project set to improve commuter travel times and reinvigorate neighbourhoods along the alignment, real estate group LJ Hooker said.
The $300 million commitment to Brisbane Metro, supporting Brisbane City Council’s commitment, will likely see an uplift in sales activity along the route as buyers and investors look to get in on the ground floor, LJ Hooker Hooker’s Head of Research Mathew Tiller said.
“This brings suburbs like Upper Mount Gravatt and Eight Mile Plains in the city’s south and Kelvin Grove and Herston in the north closer to the CBD through increased ‘show-up-and-go’ public transport services,” said Mr Tiller.
“While the Queensland Government is prepared to go it alone in the funding of the Cross River Rail project, the Brisbane Metro is the Federal Government’s preferred public transport solution for the city, and the two-tier commitment will provide investors with significant funding.
“As the population growth of our major cities aggravates congestion, lessening the time we commute to work will deliver tangible value to property owners.”
The Federal Budget commitment comes as suburbs to benefit from the Brisbane Metro’s corridor had subdued growth in the 12 months to January. According to CoreLogic, Upper Mount Gravatt houses recorded 2.5 per cent growth in the 12 months to a median of $625,000, while Eight Mile Plains recorded 1.3 per cent ($780,000). The Budget allocation could be the catalyst for the areas to catch up with neighbouring suburbs including Mount Gravatt East (11.6 per cent growth to $658,000) and Mansfield ($676,250 for 7.3 per cent rise).
Equally, on the northern side of the Metro alignment, Kelvin Grove’s house market underperformed in the 12 months to January (a drop of seven per cent to $771,500) while the median house price in Herston went back 4.7 per cent ($820,000).
Elsewhere in the Budget, the Government’s seven-year personal income tax policy will assist mortgage holders and tenants in their monthly outgoings, as well as with the cost of living.
“This comes a crucial time with the improving economic outlook likely to see interest rates rise sometime in the next couple of years,” said Mr Tiller.
Additionally, LJ Hooker welcomed the Coalition’s commitment to retain current negative gearing allowances in their current form.
“Previous analysis of landlords for whom LJ Hooker manages their investments showed 37 per cent have a household income below $100,000 while 67 per cent had household earnings below $150,000.
“Negative gearing is not a concession reserved for the well-heeled. Property is an important wealth accumulation tool for many people and negative gearing contributes significantly to the economy through the employment of tradespeople for investment maintenance and repairs, strata and property managers, accountants and countless others directly and indirectly employed in the property sector.”