Who's performing better - Sydney or Brisbane?

How does Brisbane compare to Sydney on the property market?

Many savvy investors have been looking at Brisbane as the next big city to dominate the property market in Australia. There's plenty of evidence to support this as well, and it's a brilliant city to be situated in.

There's so much growth there, even including south of the state a little on the Gold Coast. One of the most popular tourist destinations in the whole country is just a relaxing one-hour drive south of Brisbane – that's got to be attractive for anyone who loves catching a wave.

Investors and owner-occupiers will all be rejoicing at the current state of the Brisbane market. It's popular, but significantly cheaper than Sydney, plus there's a huge number of sales happening, which means the landscape for buying is ripe. People who want an investment property in Brisbane might find themselves with tenants forming a queue – Brisbane is going from strength to strength, and the CommSec State of the States report from earlier in May suggests that this is going to continue.

Is Brisbane the place for you to buy?

CoreLogic RP Data states that the median dwelling value in Brisbane is $528,610, while Sydney is significantly higher at $955,290. However, over the past three months, the median value of dwellings that have actually been sold is well below that figure at $465,000 – even Sydney is down on the monthly figure with $780,000.

This shows that the homes being sold right now are ones lying below the median for dwellings across the city, and that opens the door for you to nab a real bargain. You might stumble across one of these by mistake, but you'll have a much higher chance of doing so if you employ a property market expert to scour the region for you. A buyer's agent has studied the local market for a long time, so knows the ups and down, and the suburbs on the verge of growth.

Take some advice from the people who know the markets.

No matter what the reason is for buying, the prospect of capital gains is something that everyone looks for. And why wouldn't you? There's very little point in pumping so much money into a property only to sell it for a loss at the end of your time there. CoreLogic RP Data classifies this as a 'pained' property. Not a category you want to find yourself a part of.

Taking some advice from the people who know the markets is your best bet for ensuring capital gains are likely down the track.

But why Brisbane?

The market in Sydney has long been leading the pack for Australia – as the centre of so many businesses in the country, it drew a lot of people in, and then expanded rapidly. Melbourne is currently going through a large period of its own growth, although with an already heightened median home value, there isn't much more room to increase rapidly in the next few months on the same scale because of consumer pressures holding it at a reasonable level.

Brisbane is next – it offers a fantastic lifestyle with so many of the same luxuries that are found in the previous two cities, but for a fraction of the price. Brisbane has also increased in house price growth, as the third-best figure in the country (6.69 per cent) behind Sydney and Melbourne with 8.38 per cent and 10.79 per cent respectively.

In fact, Brisbane has recorded the biggest change over the past month alone – 2.41 per cent. That's pretty impressive data, considering Sydney still managed to grow by 2.12 per cent in April.

Brisbane isn't taking all the growth for itself and running away with it. Instead, it's improving steadily while all of the other major cities are doing so as well. That's not exactly a walk in the park, and CommSec points out a few of the reasons this could be happening.

Queensland as a whole comes in at third in the ratings for dwelling starts, and a Jones Lang LaSalle (JLL) report finds that units are adding to that figure drastically. Between 2016 and 2020, Brisbane will have 15,937 apartments under construction adding to the housing supply, with a further 12,684 having approved plans already. In contrast, Sydney will have 12,900 apartments built, and only 6,650 more approved.

Sydney might no longer be in the lead for growth and value. Capital gains are prevalent in Brisbane too, and there's plenty of scope for you to get yourself a bargain. A total of 30,152 people had the same idea in April, according to SQM research, providing the data for the number of homes sold in the city. This was the second-highest number, behind Melbourne, and grew by 12.8 per cent over the past 12 months.

Let a Cohen Handler buyer's agent get you into the best home for your needs in Brisbane – they can make the process a breeze. Brisbane property won't be there for the taking for too much longer!

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