Brisbane’s property market is positioned better than any other major city in Australia and, with confidence on the mend, will attract an increasing number of investors over the coming 12 months, says a leading property analyst.
Speaking at a presentation recently held at The Milton, Michael Matusik, director of Matusik Property Insights, said Brisbane was at 6 o’clock on the ‘property clock’, where 6 o’clock is the bottom of the market and 12 o’clock is the peak.
In comparison, Sydney is currently at the peak of the market, at 12 o’clock, Melbourne is coming off the boil, at 1 o’clock, and Perth and Hobart are still on the downswing at 4 o’clock.
“Three things drive a property cycle north – confidence, the supply and demand ratio and jobs, and Brisbane is well positioned when it comes to all three,” said Mr Matusik.
He went on to say, “Brisbane’s new housing supply remains tight, with supply and demand within five per cent – once again one of the tightest rates in the country, and new housing starts are relatively low, which will affect supply going forward.
“The Inner West and Inner East are Brisbane’s most undersupplied markets, each only providing eight per cent of new stock in the inner city.
“This has translated to above average growth in the Inner West, which recorded the highest growth in Brisbane apartment values between 2001 and 2011 at 10.8 per cent per annum, with Milton alone recording an average 12.5 per cent increase for apartments.
“At the same time, Queensland is expected to experience the most significant economic growth in Australia between 2012 and 2013, with a plethora of new resource and infrastructure projects in the pipeline to also drive future job growth.
“Brisbane is also forecast to enjoy one of the fastest growing economies in the world over the next ten years, ahead of powerhouse economies like Singapore and Hong Kong.”
Mr Matusik said Brisbane property was becoming increasingly attractive to investors, lured by tight vacancy rates, sitting below 2 per cent, and rents that were growing at well above the rate of inflation.
“This is not only good in terms of return for investors, but it is likely to drive up property values over the coming years,” he said.
“The proportion of household income needed to buy a medium priced dwelling in Brisbane is also among the lowest in Australia, sitting at around 30 per cent and below the Australian average of above 35 per cent, which is also good news.”
Mr Matusik said many buyers were turning to new properties, which often offered a much better return, particularly when depreciation allowances, incentives, compliance and lower ongoing maintenance costs and hassles were factored in.
“Interest is returning to the off-the-plan market, particularly projects that are being undertaken by developers with a proven track record of delivery,” he said.
Source – Homepage