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.
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.
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.
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.
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.
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.
Remember the multi-award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased. Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices in Brisbane, Melbourne or Sydney you will receive a free copy of Michael Yardney’s latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.