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Should frustrated home buyers and investors look to Brisbane?

While the Sydney and Melbourne property markets have been hogging all the headlines, Brisbane has been quietly chugging along in the background.

But for how much longer will it be on the back pages?

The latest CoreLogic data showed that for the last few months Sydney and Melbourne property prices were flat, yet Brisbane’s increased by a modest 1.2% over the last quarter.

CoreLogic Index results

Affordability plus?

Untold media reports over recent months have been bemoaned the lack of affordability for homebuyers and investors in Sydney and parts of Melbourne.

Now I’m not debating that in Sydney in particular it’s not difficult for would-be property owners to get into the market.

But here’s the thing: in Brisbane opportunities abound for all types of buyers.

Consider this...

While the median house price in Sydney is an eye-watering $1 million-plus, in Brisbane it’s $650,000, according to the latest REIQ figures.

And that median is for the Brisbane city council area. queensland brisbane city water sky QLD map state capital australia

In Greater Brisbane, which encompasses the shires of Logan, Redland, Moreton Bay and Ipswich, the median house price is $513,000 ­– or about half the price of Sydney.

Over recent years, Brisbane’s market has been producing solid returns, and investment grade properties in the right locations are strongly outperforming the general Brisbane property market.

Middle-ring suburbs which may offer investment potential in the years ahead include Carina, Stafford Heights, Upper Mount Gravatt and Yeronga.

If you ask me, Brisbane’s affordability is likely to result in stronger price growth over the short- to medium-term as investors especially look for markets with better capital growth and cash flow potential.

In fact, a recent Property Investment Professionals of Australia survey found that more 50 per cent of investors were looking to the Sunshine State to buy in the next 12 months.

Unit opportunity?

But…be careful! 

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Not all properties in Brisbane will make good investments even though apartments in Brisbane are extremely affordable compared to the southern states I have serious concerns about oversupply of new units in Brisbane’s inner-city.

Lucky we never recommend buying new off-the-plan units at Metropole, isn’t it?

However established townhouses can still make very solid investments in Brisbane, especially in those middle-ring suburbs that are starting to gentrify.

Suburbs that sit within that five to 12 kilometre radius of the CBD that may be worthwhile considering including Morningside, Mount Gravatt East, Taringa and Wishart .

The bottom line…

If you’re a frustrated investor because of high prices in Sydney and Melbourne, then you should consider other locations that may offer better good long term investment opportunities.   house real estate

You can do this by investing in another capital city such as Brisbane while continuing to live wherever your heart desires.

The days of having to own the house you live in are on the wane as more and more people, especially the younger demographic, recognise that they need to look outside their Sydney or Melbourne suburbs to buy property.

By saying “no” to investing in their own backyards, many are finding they can afford to invest in property that can achieve solid returns from afar.

WHAT CAN YOU DO ABOUT THIS?  

As signs point to softer growth conditions for Australian property over the coming months, independent professional advice and careful consideration will be as important as ever in navigating Australia’s varied market conditions.

If you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.



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About

Brett Warren is the Senior Property Strategist at Metropole Properties Brisbane and uses his 12 plus years property investment experience to advice clients how to build their portfolios. Visit: www.brisbanebuyersagent.com.au


'Should frustrated home buyers and investors look to Brisbane?' have 2 comments

  1. Avatar for Property Update

    July 1, 2017 @ 10:11 am Steve

    Yes I have just purchased a house on the Brisbane northside. 4/2/2 on 530m2 . Purchased for $385k rent $450 pw. Tenants lining up to rent. No brainer really. I will move in eventually and relocate to Brisbane when I finish my current job contract.

    Reply


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