More and more property investors are asking themselves, should we move into the Brisbane property market. Brisbane presents a great opportunity for investors who are being priced out of Australia’s two big capital cities. Properties are more affordable, rental yields are higher and the market now appears to be moving forward.
Brisbane is a thriving multicultural hub with a population of 2.2 million, making it the third-largest city in Australia. It also has the largest population growth rate of any capital city in Australia. An inner-city population density less than Sydney and Melbourne keeps accommodation affordable, and the city’s major education precincts provide students and residents with plenty of open space to enjoy.
While the market shows signs of slowing in Sydney, Brisbane has recorded a healthy rise in sales. With growing confidence and activity across all price points, the overall median was up 2.8% last year and Brisbane’s unit and townhouse market also performed strongly with prices up 4.5% (Source: Corelogic 2016).
McGrath real estate agents, John McGrath shared his property crystal ball with us, and says the Queensland market is showing resilience, and is currently seen as affordable, safe, steady, reliable and doing well in tough economic conditions. McGrath sees 25-35% growth over the next 3 years in Queensland, stating he thinks it is going to be the outstanding market in Australia. View the full interview with John McGrath via our blog here. http://www.rpmqueensland.com.au/south-east-qld-stands-out-with-up-to-35-growth-in-the-next-3-years/.
According to the REIQ, Brisbane’s gross rental yield for the September quarter of 2016 for houses was 4 per cent and for units was 5 per cent, meaning Brisbane’s gross rental yields remain above Sydney and Melbourne.
The Brisbane Property Market in 2015 was the best performing capital city across Australia. According to CoreLogic RP Data. In fact, their senior research analyst Cam Kusher says the next 12 months is likely to be characterised by a slowing of the rate of home value growth in Sydney and Melbourne but increasing in Brisbane.
“While value growth slows in these cities there’s already evidence to suggest that value growth is picking-up in southeast Queensland and Canberra, although we don’t expect values to increase at anywhere near the pace of recent rises in Sydney and Melbourne,” he says.
It’s likely that Brisbane’s property prices will now continue to grow in a sustainable way.
Brisbane’s median house price is now far lower than Sydney and Melbourne, and when coupled with higher rental returns, makes for very affordable investment opportunities.
According to the Australian Bureau of Statistics 2011 Census, the median age of Brisbane residents is 35, which is younger by two years than the average age for Australia. And the average family size is 1.9 children.
The Greater Brisbane region, which covers the local government areas of Brisbane, Logan, Ipswich, Redcliffe and Moreton Bay is home to more than two million residents.
Population growth of Australia is expected to almost double by 2055, with Queensland also becoming home to more than seven million people over the next 40 years.
Given Brisbane’s sub-tropical climate, the region is well known for its beautiful weather and laidback lifestyle.
Greater Brisbane also has far more affordable property than southern cities of Melbourne and Sydney. And while Brisbane is Australia’s third largest city, tenants don’t necessarily want the same features as renters in Sydney and Melbourne.
In fact, the Brisbane median house is the third most affordable in Australia even though Queensland’s population is the third highest behind New South Wales and Victoria.
Like everywhere else in Australia, the Brisbane property market is driven by demographics – where people want to live, how they want to live and how much they can afford.
There are a number of locations in Brisbane hosting both strong growth potential and investment opportunities, and the right properties in these locations will make great long term investments.
Here are just a few Greater Brisbane location profiles that we see substantial investor opportunity in. These profiles summarise demand and growth rates as well as demographics and economic drivers for each area. prices range from $400,000 – $600,000.
Take note of quality new residential developments that are occurring in these locations. And don’t overlook the opportunity to purchase a house and land package, townhouse or villa located in brand new estates near all the major facilities and services.
Investors should be mindful to buy an affordable, mainstream rental property, not lifestyle orientated stock that comes with emotional attachments.
Brisbane’s property market is ripe for investment – it’s economy is improving, population is growing, infrastructure is being added and property remains affordable.
Finding the right property is key, which is what we specialize in, here at RPM Queensland. We can assist you to navigate the market and show you how to take advantage of opportunities currently available, by offering independent, unbiased advice.
Whether you are a first-time investor or a seasoned Investor, RPM can help you formulate an investment strategy or review your existing portfolio.