Survey shows Brisbane best city for property investment
According to a survey of over 1,000 investors, nearly two thirds of property investors say they are looking to buy a residential property in the next six to 12 months, and many of which are turning their heads to Brisbane.
Most of the property investors surveyed believed that Brisbane was the most affordable capital city in Australia to buy in right now as Sydney and Melbourne have both seen property prices boom.
Even at iBuyNew, we have noticed this trend over the past year and 50% of all iBuyNew sales during the 2014-2015 financial year were for Brisbane off the plan apartments, compared to just 3.6% of sales during the 2013-2014 financial year. So far, the first quarter of the financial year to date has seen 73% of our clients at iBuyNew buy an off the plan apartment in Brisbane, of which 96% of these buyers are property investors.
So what was the main reason for the survey respondents to buy a property in the first place? Well, over 40 per cent of property investors stated that their prime reason to buy real estate was for long-term wealth benefits, followed by capital growth opportunities as well as taking advantage of the low interest rates that the country is currently experiencing.
According to Property Investment Professionals of Australia chairman Ben Kingsley, “Investors are seeing Melbourne and Sydney performing very well and they’re looking for alternative markets that they think they can get in before the market starts to move”. Mr Kingsley also added that Sydney’s market had started to slow and Melbourne was approaching the peak of the cycle.
58 per cent of investors surveyed by PIPA saw Brisbane as the capital city offering the best investment prospects, whilst only 17 per cent of respondents thought Melbourne had the best investment prospects. Only 11 per cent identified Sydney, followed by 6 per cent in Perth and 5 per cent in Adelaide.
Mr Kingsley mentioned that “Probably over the last six months there has been some speculation in the Sydney market, and the Melbourne market is enjoying a good spring but I suspect that will slow down into 2016.”
Interestingly, some of the respondents had concerns about a property bubble and one fifth of investors actually put their investment plans on hold because of this concern. However, the main concern that investors had was the tighter lending conditions from banks, due to regulators seeking to slow down the growth of investor lending.
As well as tighter lending conditions having an effect on property investors, long periods of vacancy, oversupply, price corrections and the possibility of negative gearing being removed also played on investors’ minds.
Nevertheless, there is definitely a trend of investors purchasing property in Brisbane and if you have been umming and ahhing as to whether Brisbane is the best place for you to invest right now then all you need to do is look at the facts and get in quick before this market is well and truly jumped upon.
To find out more about the Brisbane property market and which suburbs you should be investing in, why not contact iBuyNew today, where one of our expert Property Consultants can help you with any property enquiries you might have.
Call us today on 1300 123 463.
Published on 2nd of November 2015 by Marty Stanowich