Brisbane Industrial Property Prospects 2019-2029
The Brisbane industrial property market continues to perform well. Underpinned by a recovering Queensland economy and boosted by global changes in the logistics and retail industries, occupier demand has been exceeding supply additions, bringing down vacancies and stimulating the first meaningful rental growth since the GFC. Meanwhile, further yield contraction through FY2019 has delivered another year of solid capital gain and investment returns.
The short-term outlook is for more of the same. Historically low bond rates support the continuing flow of money into industrial property, promising attractive investment returns. After a brief weakening, demand will be supported by a cyclical upswing in the Queensland economy and further expansion in the logistics sector. However, forecast bond rate rises and the associated softening of yields post 2021 loom as the main risk for investment returns.