Unlocking Queensland’s potential

Queensland (QLD) has entered a period of unprecedented growth. A combination of a diversified economy, strategic infrastructure investment, and population growth is expected to sustain this growth over the medium to long term, creating opportunities across multiple sectors, particularly for the state’s real estate sectors.

QLD’s economy benefits from strong rankings across key economic variables, positioning the state as one of the strongest performing nationally. Furthermore, the state’s economic diversification agenda as well as current infrastructure pipeline projects will support growth over the medium to long run.

QLD’s export sector contributes significantly to the state's economic output. The state remains Australia’s second-largest merchandise exporter, with exports totalling AUD105.4 billion in FY 2023-24. Furthermore, QLD has an active diversification agenda, with emerging sectors such as international education, technology, and innovation expected to enhance overall economic performance in the long term.

Queensland's appeal extends beyond traditional economic measures, with Brisbane ranking as Australia's most stable CBD office market, as evidenced by vacancy rates that demonstrate lower volatility compared to other major markets.

Brisbane CBD white-collar employment has grown 12% over the past decade, led by healthcare (85%), finance & insurance (34%), and education & training (33%). This diversification creates a resilient foundation for office market performance.

The retail sector presents compelling investment opportunities. QLD recorded the strongest shopping centre retail turnover growth among major states, with a total increase of 22.9% from 2019 to 2024, compared to 16.1% in NSW and 18.8% in Victoria.

On the other hand, QLD is facing the most severe supply-demand mismatch nationally. The state requires 2.6 times more retail space than is currently in the development pipeline over the next five years.

Queensland's government has demonstrated robust fiscal management, enabling significant infrastructure investment, representing 5.7% of Gross State Product annually over the next four years. This AUD 29.2 billion annual investment significantly outpaces other states in relation to their economic size, with NSW at 3.8% and Victoria at 3.1%.

This infrastructure pipeline will drive industrial and logistics sector activity, support the expansion of the blue-collar workforce and boost manufacturing and construction. Brisbane's emerging position in technology further enhances its appeal, with South East Queensland recognised as Australia's fastest-growing region for technology jobs.

Brisbane offers compelling value compared to global markets, with prime office price-to-earnings ratios demonstrating an appealing entry point for investors. The correction in real estate values between 2022 and 2024 was less pronounced in Brisbane than in other major markets, reflecting the market's underlying stability.

The 2032 Olympic Games, ongoing knowledge economy expansion, and QLD's leadership in emerging sectors, such as AgTech, Energy Transition, and Green Hydrogen, provide multiple growth drivers for long-term real estate performance.