South East Queensland has been a "beacon of light" in Australia's property sector so far this year, according to Knight Frank.

Research from the agency has revealed that a strengthening economy, affordability, and Brisbane's infrastructure pipeline has contributed to growing confidence within the region's market.

Knight Frank Partner and Head of Queensland Ben McGrath said the market was faring better than most others around the country.

At a glance:

• Research from Knight Frank's commercial and residential markets have had a strong start to the year.
• The office and industrial sectors have been the highlight, while retail has taken a back seat.
• Knight Frank projects the proportion of ultra-wealthy individuals in Brisbane to rise by 20 per cent between 2018 and 2023

“Both the residential and commercial markets in South East Queensland are performing well, especially in comparison to other parts of the country,” he said.

“While Sydney and Melbourne’s commercial property markets have seen a correction in recent months after significant growth, Brisbane’s market continues to firm, with a lot of enquiry and transactional activity marking the start to this year.

“Interest in our market is largely reflective of our affordability levels, as well as a strengthening economy, with population and jobs growth, a mining resurgence and an infrastructure pipeline worth hundreds of billions of dollars, all of which is creating confidence."

Mr McGrath added that office and industrial had been the standouts in Brisbane's commercial market, while retail had taken a backseat.

Knight Frank Head of Residential Research in Australia Michelle Ciesielski. Source: Knight Frank

“In the institutional end of the office market we are seeing a lot of money and it’s certainly evident that Brisbane is on the radar,” he said.

“The South East Queensland economy is now reaching a level of maturity that is attracting more interest from offshore buyers, and the assets being chased are those that present value-add opportunities or core assets with long, secure lease structures. 

“There is no end of capital for either of those at the moment as long as the assets are priced correctly, and there are minimal concerns about funding availability at this end of the market."

Knight Frank's 2019 Wealth Report found the number of ultra-high-net-worth individuals (those with a net worth of over US$30 million, excluding their primary residence) living in Brisbane was growing at a fast pace.

Knight Frank Head of Residential Research in Australia Michelle Ciesielski said the trend was expected to strengthen investor demand in South East Queensland.

“The proportion of ultra-wealthy individuals in Brisbane is projected to rise by 20 per cent between 2018 and 2023, equating to an extra 50 UHNWIs every year," she said.

“The projected growth is stronger than the 10 per cent growth recorded over the past five years, between 2013 and 2018.”

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