South Brisbane is becoming a world-class mixed-use community and cultural hub, and with more than $4 billion in existing and planned infrastructure projects, the riverside suburb is the most infrastructure rich urban area in Queensland, Colliers International's South Brisbane Highlight report has revealed.

Lachlan Walker, Colliers International Research Analyst, said the report found that the significant level of infrastructure development in the South Brisbane area has lifted the profile of the precinct, by increasing both accessibility and livability.

"South Brisbane is becoming one of the most sought after suburbs in Brisbane,  due to its proximity to the city's very best cultural centres, schools,  universities,  hospitals and  major  entertainment  arenas,  as  well  as  direct  access  to  major  developing  transport infrastructure nodes."

According to the report, continuing redevelopment within the area includes $1.7 billion in infrastructure projects, including the $200 million Arts Precinct extension in South Bank and the $100 million QPAC upgrade, both of which are currently underway, as well as the planned $100 million redevelopment of Southbank's Southern Restaurant Precinct and $2 million City Cat Terminal upgrade.

The latest major infrastructure project and first inner-city road bridge to be built in nearly 40 years is the $338 million Go Between Bridge, a four-lane cross-river connection with dedicated pedestrian and cycle pathways which connects the northern and western suburbs to South Brisbane and West End.

The bridge, which officially opened to the public on Monday, 5 July, is designed to increase accessibility to and from some of Brisbane's most popular recreational, cultural, educational and residential precincts including South Bank, West End, Caxton Street and Park Road.

Mr Walker said the precinct is closer to the Queen Street Mall than any other city-fringe location, at less than one kilometre away.

"South Brisbane enjoys incredible accessibility to the CBD via each of the city's six bridges; the Goodwill, Victoria, William Jolly, Rail and Tank Street bridges and the brand new Go Between bridge," he said.

Inner Brisbane is under increasing development pressure, due to an ever expanding resident population, changing lifestyles and demographics and a constrained land supply.  

"The South Brisbane area in particular has experienced a surge in population levels in recent years, with the total population standing at about 4,300 residents," Mr Walker said.

"As more developments get underway and town planning schemes are implemented to facilitate greater residential densification, further population growth is expected."

"South Brisbane has a high level of connectivity and transport infrastructure, which has the capacity to sustain this growth."

Mr Walker said the latest South East Queensland Regional Plan has defined a need for 138,000 new dwellings to be delivered to the Brisbane area to accommodate growing demand.

"This spike in demand is partly due to the suburb's central locality and broad range of amenities, as well as the slightly more affordable rent rates within the area, in comparison to the CBD," he said.

According to the Colliers International report, South Brisbane is dominated by apartments, which account for 80 per cent of all residential dwellings. The significant development in the area in recent years has resulted in stand-alone houses and semi-detached dwellings being almost phased out.

The report revealed that the region of South Brisbane has the highest proportion of Brisbane's population aged between 20 and 29 years of age, equating to 32 per cent of the distribution and suggesting a high concentration of students and young professionals.

In terms of property investment, Mr Walker said the area ticked all the boxes for either those entering the market for the first time or investors seeking a solid return on investment.

"Developments within suburbs which provide a point of difference - being proximity to the riverfront and the CBD, significant green-space, or the expected gentrification of the locality in the near future - such as South Brisbane, will continue to recognise above average returns," he said.

"South Brisbane is reasonably affordable considering its proximity to the city, with a median sale price for apartments of $470,000 recorded, as at December 2009."

"All precincts within the area experienced a positive annual capital return on apartment investment for the 12 months to December 2009, with South Brisbane recording capital growth of 7 per cent."

Mr Walker said future residential developments within the area will no doubt be attractive to investors, due to the secure yield returns presented in the area, as well as first time purchasers within Generation X and mature Generation Y market.

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For further information please contact:

Susan Epp
Communications Manager l Queensland
Tel: +61 7 3026 3322
Mob: +61 434 573 026  
Email: susan.epp@colliers.com