Can Brisbane finally deliver long-expected growth?
As the Sydney and Melbourne property markets stole the spotlight last year, many pundits are predicting that 2015 is Brisbane’s turn. So is this the year it’s going to happen?
Talk about being well overdue for a growth spurt. A quick glance at the numbers makes for exciting reading for Queensland investors. Since 2009, dwelling values in Brisbane have only risen by 7.7%, compared to the massive 59.1% increase in Sydney and 52% increase in Melbourne.
And the growth potential is not the only thing that’s attracting investors and first home buyers.
“Yields are substantially higher than what can be found in Sydney and Melbourne, and affordability constraints are much less severe,” says Cameron Kusher of CoreLogic RP Data.
According to recent CoreLogic RP Data Home Value Index results, Brisbane’s gross rental yield for houses currently sits at 4.5% (third highest capital city in Australia) and 5.5% for units (second highest capital city in Australia). And with a median dwelling price of $452,200, this is cheaper than Sydney, Melbourne, Perth, Darwin and Canberra.
“Of all the major capitals, Brisbane appears to be showing the best fundamentals,” says Kusher.
According to PRDnationwide, Brisbane property is already in high demand, which is evident from the growth in rental prices, the rising number of sales, and falling average days on the market.
“Brisbane is growing at a high rate, and since prices have not yet reached their near peak like Sydney, 2015 will be hotter than ever,” says Diaswati Mardiasmo, PRDnationwide national research manager.
For Terry Ryder, founder of Hotspotting.com.au, the Brisbane metropolitan area is “very solid” at the moment, with one key exception. “The apartment market is the only worry. It is being built to sell to the Asian sector rather than the local market,” says Ryder. “They already have high vacancies and they are about to go higher.”
Article from: http://www.yourinvestmentpropertymag.com.au
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