A strong economy and a strong future. This is what VentureCrowd forecasts for the South East Queensland (SEQ) region.
The ‘Golden Triangle’ made up of the Sunshine Coast, Gold Coast, Brisbane, Ipswich and Toowoomba represents a golden opportunity for investors with an additional 1.5 million people expected to move to the area by 2041.
Having one of the highest rates of investment in infrastructure rates in Australia, the economic growth in South East Queensland is about to turn into a significant increase, and this will make the area very attractive to new business and real estate investors.
Let’s take a look at what is accelerating this growth and what investment opportunities will be there in the next few years.
On the 21st of March this year, Citi’s $1.8 billion deal for South East Queensland was signed, with the money going towards critical infrastructure projects in the region. This includes the new $450 million Gabba Brisbane metro station, the $150 million Innovation Economy Fund, and $70 million digital connectivity projects.
Other major infrastructure projects for the period 2022-2023 include:
- $285.8 million for the Living in Southeast Queensland Fund
- $105 million for resource recovery infrastructure to develop a district-wide waste management program
- $1.121 billion Brisbane to Gold Coast (Corabi-Benley) faster rail upgrade
- $27.2 million for three business cases to upgrade the Bruce-Anzac Highway (between Anzac Boulevard and Caboolture Bribie Island Road)
- Infrastructure projects in the state currently under construction are expected to support around 20,500 jobs over the life of the projects.
Queensland Premier Anastasia Blaszczuk said the project will prepare south-east Queensland for the 2032 Olympic and Paralympic Games, ensuring the area is well-equipped to host the expected 500,000+ tourist influx as well as supporting sustainable growth over the coming decades.
Go for the gold
The announcement that Brisbane will host the 2032 Olympics is a defining moment for the future of South East Queensland.
Hosting the Olympic Games can raise a city’s profile on the world stage and attract new foreign investment, leisure and sports activities, and increase net immigration.
VentureCrowd believes that Brisbane winning the Olympics will boost the Queensland economy and open up a host of new opportunities for investors in new businesses as well as in the real estate development sector.
Brisbane and South East Queensland have been on the rise for some time now, and Venture Crowd believes the announcement really boosts the opportunity for the region to really come into its own over the next 10 years.
At a cost of $5 billion, KPMG expects the 2032 Olympic Games to inject $8.1 billion into the Qld economy, $17.6 billion into the broader Australian economy, and create 100,000 new jobs.
Other projections indicate that there will be:
- $8.6 billion in increased export opportunities,
- more than $20 billion in international tourism spending,
- Nearly $700 billion has been spent on infrastructure projects in the region, including: building new venues and upgrading existing ones, building new sports villages in Brisbane, Gold Coast and Sunshine Coast; and modernization of the road and rail networks that connect the SEQ sites that will be venues for Olympic sports.
- When you inject this level of financing into any region to accelerate major city construction projects, the region’s attractiveness as a place to live and work increases materially and creates a multiplier effect throughout the local economy that can be very powerful, and VentureCrowd believes this will be the case for SEQ.
Plus, you have the power of positive consumer and community sentiment – something that’s hard to measure but a very important component of economic stimulus.
An undersupplied and undervalued property opportunity
On the real estate side, the SEQ housing market is already in short supply and is expected to remain in short supply for at least the next few years. With the Olympics only a decade away, VentureCrowd expects there will be an even greater increase in domestic net immigration in the region, and this will put more pressure on an already short-supplied housing market.
This can be good news for real estate investors as it means that price growth is likely to remain strong for some time. But, it also means that SEQ will need a lot of equity and therefore, investors should expect a whole host of new residential property developments to come online across the region over the next few years in order to meet the growing demand.
At VentureCrowd we are proud to be a part of this growth story enabling our crowd of investors to support a community focused real estate development in Toowoomba and soon to be launching a new development soon in Albany Creek with development of 47 plots over 2 freehold plots of land, complementing By June 2024.
Finally, to venture capital; SEQ has become one of the most vibrant startup ecosystems in the country and is fueled by some of the largest startup investments and exits in Australian history.
The SEQ district is also home to some of the country’s leading university accelerators, incubators, and commercialization departments that are doing some really cool work across health technology, food technology, biotech, agricultural technology, and a number of other really interesting areas. An example of this is the LuminaX HealthTech Accelerator supported by the VentureCrowd HealthTech Fund.
When you add affordability, lifestyle, and the fact that remote work is becoming commonplace, VentureCrowd predicts that more and more founders will choose to build themselves in a sunshine state.
More information can be found at VentureCrowd.com or Book a call with their team. Any inquiries regarding VentureCrowd should be directed to VentureCrowd and not to Stockhead.
This article was developed in collaboration with VentureCrowd, a Stockhead advertiser at the time of publication.
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