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News release

BRISBANE

$18 billion worth of infrastructure investment for Brisbane to drive set accommodation market


​​Brisbane is well and truly positioned to realise its title as Australia's 'new world city' as its set to welcome approximately $18 billion of public and private infrastructure investment. Industry experts agree that one of the biggest beneficiaries of much of this investment will be the city's accommodation market. 

 
The Brisbane accommodation market saw strong growth in both domestic and international overnight visitations with year-end March 2017 statistics from Tourism & Events Queensland (TEQ) showing an increase of 9.3% to a record 6.2 million domestic visitors. International visitation to Brisbane likewise increased 4.9% to 1.2 million over this period. 

 
One of the largest infrastructure contributors touted to benefit the Brisbane accommodation market is Brisbane Airport's development of the $1.3 billion second runway. Brisbane Airport has recently welcomed new direct airline services to key Asian source markets including Shanghai, Shenzhen and Kuala Lumpur and with continued globalization and international focus on the Queensland capital the increased capacity will be a welcome addition for the growing city. 

 
Tom Gibson, Vice President JLL Hotels & Hospitality Group said, "Arrivals at Brisbane Airport are approximately 23 million annually and this is an increase of 5 million over the 10 years. The new runway provides the capacity to double arrival numbers. Passenger volumes, are expected to reach some 50 million by 2035." 

 
This new runway is considered the largest current aviation project in Australia. "The scale of Brisbane Airport Corporation's investment in new airport infrastructure is a clear demonstration of the confidence in Brisbane's emergence as a New World City, and provides further impetus for transformational and city shaping projects such as Queens Wharf Brisbane, Cross River Rail and Brisbane Live." continued Mr. Gibson. 

 
"Airport expansions are a barometer for the longer-term ambitions of a dynamic capital city. Not only does a new runway bring new flights to a market, it provides a strong foundation for growth to the hotels sector, as well as the commercial, logistics, retail and residential property sectors." Mr Gibson said. 

 
Reflecting the strength of Brisbane's infrastructure development and hotel market's long-term outlook, investment in accommodation assets in the Queensland capital is becoming an increasingly key focus for international and domestic players alike. 

 
"The magnitude of interest we are currently receiving from very credible international and domestic investors is a testament to the city's long-term investment fundamentals. Well located quality hotel assets in and around the Brisbane CBD are being increasingly sought after like the recent sale of the New Inchcolm Hotel & Suites to Ovolo Hotels from Hong Kong by JLL Hotels & Hospitality Group" said by Mr. Gibson.  

 
The city is exceptionally well-positioned to support this growth off the back of an increase in commercial and hotel development, the introduction of new leisure infrastructure, and the affordability of the residential market in comparison to the likes of Sydney and Melbourne, concluded by Mr. Gibson.

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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit http://www.jll.com/

JLL has over 50 years of experience in Asia Pacific, with 36,000 employees operating in 94 offices in 16 countries across the region. We were the first global commercial property firm to establish an Australian presence in 1958 and currently employ over 2500 employees throughout our 10 offices across the country. The firm won the 'World's Best' and 'Best in Asia Pacific' International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics.  www.ap.jll.com.​