By Jennifer Duke, 10 March 2014, Source: Property Observer
Brisbane Investment is now clearly back in favour and property prices are showing us why.
Traditional investor cities of Sydney and Melbourne are being tipped to fall out of favour as Brisbane’s affordability allows it to emerge as the new city to invest in, according to Place Advisory.
In Brisbane, the median apartment price sits at $383,000, with Place Advisory director, Lachlan Walker, placing this at 26% below Melbourne’s $481,000, and 45% cheaper than Sydney’s $557,000.
“In Brisbane one-bedroom apartments, situated just one kilometre from the CBD, are available from $339,000 and they max out at around $500,000 for premium stock, while in Sydney the same type of apartment would start at around $500,000,” said Walker.
“A median price disparity of this magnitude has not been seen between these cities since 2004.”
Houses are seeing a similar disparity he said, pointing to RP Data statistics presenting Brisbane’s median house price at $480,000, Melbourne’s at $610,000 and Sydney’s at $765,000. Perth’s median sits at $540,000.
In Brisbane, 76% of house sales are under $600,000, with this number dipping to 62% in Melbourne and 44% in Sydney.
For this reason, Walker pointed to Brisbane’s growing attraction for investors with a lower entry level and long-term buying opportunity.
“There is no doubt that there will be some value growth in Brisbane real estate this year, with higher demand leading to price growth,” he said.
“Sydney and Melbourne have already seen considerable growth, with double-digit price increases over the past year, but this growth is now set to slow, with the focus shifting to Brisbane investment as the next key growth area for Australia.”
He noted that Brisbane usually sits 12 to 18 months behind these two capitals in the cycle, proving it’s now Brisbane’s ‘turn’ to lead the growth.
So are you looking at the Northern capital as the place for your next property investment? Let us at Success in Property help you select the right property in the best locations.
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