Inner Brisbane is no longer the most popular place for investors to buy property according to Place Advisory’s 2016 Investor Sentiment Survey, which states that 43% of investors now prefer to invest in properties within Middle Brisbane (5km – 10km from the CBD).
Over the last few years, the Inner Brisbane ring within 5km has been popular with investors, but attitudes are now starting to change. Today there is increased speculation that the Inner Brisbane property market is starting to become oversupplied with increased levels of construction occurring and more developments proposed to start.
However, it is important to note that as the cost of land goes up, many of these proposals are likely not to commence or if they do, then they will become increasingly more expensive to purchase into. There are still opportunities available within Inner Brisbane if you know where to look, but the Middle Ring suburbs are offering plenty of strong opportunities right now that should not be dismissed.
At iBuyNew, we have been encouraging our clients to invest in Brisbane, especially in the last few years and particularly within the Middle Ring suburbs which has plenty of potential. Many of our new off the plan developments are situated close to main public transport routes and roads, whilst sits close to schools, retail and dining opportunities.
The report shows that public transport followed by retail and entertainment are now the top factors that drove investors to purchase, whilst proximity to the CBD, education facilities and employment opportunities were also some of the most important purchasing drivers for investors, but now no longer the most important.
Closeness to the CBD is becoming a less important concern for investors, but having public transport close by alongside retail and entertainment opportunities is becoming a much more preferred option. The main reason why is that these properties are more affordable compared to inner city apartments, whilst there are also better lifestyle factors within easy reach of home. With excellent public transport close by including the Northern Busway, this makes residents much more willing to live slightly further away from the CBD and commute slightly further to work.
Interestingly, the results from Place Advisory’s 2016 Investor Sentiment Survey shows that purchasers preferred larger two and three bedroom dwellings, compared to smaller one bedroom apartments. This might indicate that the demand for higher quality apartments will increase in the future with greater attraction towards two bedrooms upwards. However, just like the Sydney market, many city professionals and singles may start to prefer to invest and live in these middle ring suburbs due to the affordability factor and are used to travelling longer distances to work, where in some cases in Sydney this can be well over an hour commute each way. For Brisbane’s middle ring suburbs, commuters are still looking at reasonable commutes. For example, residents of Chermside can reach the Brisbane CBD in approximately 20 minutes.
It is important though when looking to buy new apartments whether it’s within these middle ring suburbs or elsewhere that you do your due diligence first and carefully research exactly who the demographic is that lives here to ensure you purchase an investment property that will be easy to tenant and appeal to this area.
The majority of the respondents of the survey also indicated that they are looking to purchase property within the next 12 months (29%) to two years (27%). However, the number of respondents looking to buy within the next six months has actually fallen from 25% in 2015 to 18% this year due to market uncertainty and the lack of improvement in the market.
The Federal Election alongside controversial policy changes was one of the main contributors to the higher uncertainty this year with 53% of respondents indicating that they believed the market was uncertain. Only 50% of the respondents believed the Brisbane market had in fact improved, compared to 82% in 2015 – a massive 32% decrease.
However, with both Sydney and Melbourne now out of their peak and showing signs of slowing down, Brisbane is becoming a more attractive option for both investors as well as first home buyers. Firstly, properties are far cheaper here in Brisbane compared to the likes of Sydney, and the city is still on the rise with further room for growth. First home buyers are now starting to get their foot in the door, helped by the increase in the first home owner grant from $15,000 to $20,000 for a 12-month period starting 1 July 2016.
To learn more about buying a property as an investor or as a first home buyer in Brisbane within the middle ring suburbs, why not get in touch with the iBuyNew team. Our Property Consultants are here to assist you every step of the way and can show you the best places to invest in Brisbane right now.
Call us now on 1300 123 463 to learn more about the Brisbane property market and what Middle Brisbane properties we currently have for sale.