When it relates to Australian Property,
Southern investors are looking north to the Queensland property market as
Sydney and Melbourne markets become too expensive to gain a hold.
While the latest BIS Shrapnel report
warning Sydney and Melbourne house prices will start to fall in 2016-2017 as
interest rates start to go up, Brisbane, the Gold and Sunshine Coasts, are
becoming the more attractive place for investors.
Gold Coast real estate agents said they had
been swamped with calls from southern investors in the past few months hoping
to buy north of the border for cashflow positive properties and the possibility
of quick capital growth. There is definitely an uptake in interest from
investors regarding Australian Property as Australians pay attention to the
Sydney property "bubble" and the moment it will burst.
Brisbane house prices haven't caught up [to
Sydney and Melbourne] - but we are beginning to see much more investors come
back from interstate. They have been absent for a while because things have
been so good in their own state. But there are absolutely possibilities up here
now when it comes to Australian Property
Higher returns
Buyers have remarked approximately the high
priced price tags in Sydney and Melbourne and they were enticed to the cashflow
positive returns and the hype and new facilities around the Gold Coast in
advance of the 2018 Commonwealth Games, this is excellent news for Australian Property.
The BIS Shrapnel report discovered
Queensland would mostly be set apart from the drop in house prices in southern
states, with further interest cuts later this year expected to make Brisbane
homes even affordable.
Brisbane's median house prices were
expected to show capital growth by a total 13 per cent over the following three
years, while apartments will climb by 6 per cent.
CoreLogic RP Data released on Wednesday
found Brisbane had the highest investment yields of the major metropolitan
markets for both houses and apartments.
Sydney's valuations are presently 80 per
cent above Brisbane, according to Corelogic's head of research Tim Lawless. He
stated the last time that happened in 2002-2003, Brisbane's prices took off. So
get ready for some great developments when it comes to Australian Property.
Growth projections
REIQ chief executive Antonia Mercorella
said the growth projections for Queensland homes and units was very motivating.
"Brisbane offers some excellent
opportunities for owner-occupiers and investment properties. This is in stark
contrast to other markets, such as Sydney and Melbourne, where rapid price
growth is a cause for concern," Ms Mercorella said.
She said there was also really good news
for the neighbouring Gold Coast and Sunshine Coast markets with potential price
growth expected to reach 13 per cent and 12 per cent respectively.
The Brisbane apartment market has been in
demand for some time, with the BIS Shrapnel report stating the Queensland
capital will be the only city where apartment prices will be better in 2018
than they are today.
More than $742.9 million worth of
apartments were acquired in Brisbane during the March quarter, according to
Place Advisory, which is 200 per cent above the 10-year average for the city.
They are mostly investors and most are
buying with a view to capital gain. They see better prospects for returns up
here, as well as it's more reasonably priced - there are beyond a doubt
opportunities for cashflow positive properties in South East Queensland.
If you wish to learn more about what is
next when it involves Australian property, talk to us at The Equity Factory on
1300 882 055 or visit us at www.equityfactory.com.au
