It’s fair to say that Brisbane hasn’t always been the property investor’s first choice of Australian capital cities. In the past, you just weren’t able to get the big returns you could reliably expect in Sydney, Melbourne or even Perth during the mining boom.
But that was then and this is now. Lately I’ve been fielding a great deal of interest from local and overseas investors who are eager to enter the Brisbane market. I don’t need to tell you it’s being driven by the pandemic, which has caused people living in bigger, colder cities to re-evaluate their lifestyles and make changes. People are opting for more space, less traffic, better weather and unrestricted parking as far as the eye can see.
The question is, will it last? Will investors continue to show an interest in Brisbane property once the masks are off for good, or is this just a passing fancy? Timing is everything when it comes to investment.
Superior value proposition
For the moment, investors looking for residential properties can take advantage of Brisbane’s comparatively affordable property prices and buy 10s of kilometres nearer to the CBD than they could in Sydney or Melbourne.
In my specialist areas – suburbs including the likes of Bardon, Paddington and Ashgrove, for example – you’ve got lots of high-income families and the average house costs about $1.2 million. This is unbelievable to buyers from Melbourne and Sydney. Then you tell them these areas are only 5km from the city and they almost fall over.
Explosive rental market
Another reason investors are taking notice of Brisbane is that the rental market has become massively competitive. Yields are on a sharp incline.
This rental crisis is being driven in part by people who are selling their homes at the top of the market, struggling to buy again and then having to rent for a time.
People are regularly offering to pay $20-$50 or even $100 per week more than the listed price just to secure a rental property. While this was commonplace in Sydney, this never used to happen in Brisbane.
Investors are taking an interest in the long-undervalued supply of affordable apartments suitable for young professionals in Brisbane. It used to be said that there was an oversupply of units going up in places like Newstead and South Brisbane. Well, these blocks are finally coming into their own and the developers, much maligned at the time, are having the last laugh.
Adding to this are the multiple universities located in inner-city areas, which equals rolling demand for student share-housing. Snapping up a selection of well-priced apartments is bound to be a major coup for any investor’s portfolio.
The general feeling in property circles is that there are still bargains to be had in Brisbane, but that they won’t last. I’d advise any investor to act quickly to avoid disappointment.
Selecting the right property to invest in comes down to understanding the local market – where it’s been and where it’s going. You need someone on the ground who can fill you in and guide your purchase. I can be that person for you if you’re searching for your next investment property in Brisbane.