Brisbane: The new hotspot
Property investors that are looking at the Australian market should be turning their gaze towards Brisbane.
While Sydney and Melbourne have dominated the country's economy over recent years, the state of Queensland is starting to find some traction and Brisbane in particular is gaining ground on its southern counterparts. A vastly different prospect for investors, prices in the Sunshine State should be capitalised upon to see some great returns in the future, and a property agent has the skills to help.
Making the playing field even
The dominating markets for investors in recent years around Sydney and Melbourne have driven property prices up.
Domain Group lists the median house price in Sydney at $1,013,258, an increase of 14.8 per cent over the 12 months leading up to December 2015. Unit prices increased as well, by 8.7 per cent to $655,845. Melbourne has seen similar increases, the median house price hiking by 14.5 per cent to $719,486 and units moving by 2.4 per cent to $446,046.
However, while Sydney saw an overall annual increase in the cost of properties, there was a blip on the radar. The final quarter of 2015 saw a drop by 3.1 per cent, the first decrease since June of 2012.
"The remarkable Sydney boom we've seen over the last three years is now clearly over, with the market unlikely to record any notable house prices growth until at least spring," said Dr Andrew Wilson, Domain senior economist.
With Sydney beginning to slow its growth, an opening is provided for other cities around Australia to step into a unique position. While Sydney has recorded constant and steady increases, the stability of Brisbane has set a great foundation for its own growth, and as prices remain relatively low, now is the time for investors to strike.
Booms around Brisbane
Investing while prices are low but set to grow has always been a sound investment strategy.
The Queensland government Valuer-General's 2015 Property Market Movement Report suggests that the interest in the Brisbane residential sector increased over 2015. With Domain Group reporting that the median house price is sitting at just $511,361 and proposed improvements around the region looking to improve the standard of living, Brisbane is an attractive prospect for the smart investor.
People seeking solid employment could be turning toward Brisbane as their next destination, and they may need rentals.
A major undertaking on Queens Wharf in the city is set to improve the rate of employment as well. The Queensland Mid-Year Fiscal and Economic Report 2015-16 states that a $3 billion world-class resort is being built on the prime land, and it will create 2,000 construction jobs as well as 8,000 ongoing jobs once the project is completed.
What's more, since January of 2015 there have been 50,800 new jobs around the Sunshine State, so as the region grows, people are finding success on the job market. That is good news for investors looking for rental properties, as people seeking solid employment could be turning toward Brisbane as their next destination, and they could be in need of rentals.
Smart Property Investment (SPI) figures suggest that a suburb north of the Brisbane CBD, Caboolture South, has a gross rental yield percentage of 5.59 per cent. With a median house price of just $270,000 buying property here might just be a fantastic gateway into the Brisbane market.
Getting a foot into the city
Whether you are looking for a rental property that provides great yield returns, or a longer-term investment house that adds value to your portfolio over an extended period of time, Brisbane is beginning to look like a much more accessible market than Sydney in its current state.
A buyer's agent from Cohen Handler will help you through the entire property buying process, and the specialists can take all of your specifications to match you with your perfect patch of real estate.