Investors set Brisbane in their sights, attracted by prospects of steady growth
Brisbane will be one of the best capital cities for capital growth over the next five years, according to a survey of more than 2200 property investors and owners.
The Property Investment Sentiment Survey aimed to capture a snapshot of how those in the property market are feeling about buying and selling in the future and is run by the Your Investment Property Magazine and Michael Yardney’s Property Update.
The survey results showed 45 per cent of respondents have strong confidence in Brisbane’s prospects for price growth.
Investors are circling the Brisbane property market. Photo: Tammy Law
“People believe that the steam is coming out of the Melbourne and Sydney markets,” Mr Yardney said. “But at the same time, population growth is growing in Queensland, infrastructure spending is growing and people believe it’s time for Brisbane’s time in the sun.”
On top of this, a growing number of those surveyed were looking to splash some cash in the new year.
“24 per cent of respondents to the survey conducted online said they planned to buy a new home in 2018, Mr Yardney said. “That’s considerably up from 14 per cent 12 months ago when a similar audience were surveyed.
Investment in unattached dwellings is expected to rise. Photo: Michelle Smith
“61 per cent of the people survey believed that now was a good time to buy property.”
As long as it’s the right type of property.
“In general more than three-quarters would buy property with land. Apartments at 9 per cent are out of favour at present and not surprisingly so,” Mr Yardney said. “House price growth is out performing units in most capital cities, particularly Queensland.”
He said the majority of those surveyed were clued-in to the market.
“We are surveying a group of people who are already property savvy readers. They’re not regular mums and dads who get scared by negative reports in the media.”
However, another investment expert said a jump in investor interest in Brisbane didn’t point to savvy buyers.
“I’m not surprised people would say that. We see this every day but it shows people’s ignorance of the property market,” Propertyology head of market research Simon Pressley, said. “People have been saying that since the early 2000s.”
Mr Pressley said it was naive to assume Brisbane would do well because Sydney and Melbourne were winding down.
“If you have an open mind you can do a bit better than Brisbane. It’s not like a common cold, it doesn’t get passed on from Sydney, to Melbourne, to Brisbane.”
Hobart would be the best area for growth in the coming years, Mr Pressley said.
“Do we think it’s a bad decision [to invest in Brisbane]? No. But we don’t think it’s going to boom.”
Mr Yardney said the interest from investors came from sustained growth and not just investors chasing a boom.
“Overall dwelling price growth has been low, but house prices in the middle to inner ring of Brisbane are up,” he said. “People are taking a long term view, and are not concerned with things that are happening in the short term.”