Investors eye Brisbane market

Investors eye Brisbane market

21 September 2010 by Staff Reporter 0 comments

Jessica Darnbrough

Residential investment opportunities are swelling in Brisbane as clearance rates drop well below other capital cities, accounting firm Chan & Naylor has said.

According to Australian Property Monitors, only 11.8 per cent of listed properties were successfully auctioned in Brisbane over the weekend – down significantly on the previous weekend when over 30 per cent of properties were cleared.

“There is a real lack of competition among prospective buyers, which spells opportunity for investors with an eye on the longer-term,” Chan & Naylor chief executive Sal Carrero said.

“The Brisbane slump can be attributed to successive increases to interest rates, and it could be argued that affordability has hit a ceiling in this market.  Buyers are certainly more cautious.”

Mr Carrero said investors who want to add to their portfolios should consider taking advantage of the lack of competition in the market place.

This sentiment was echoed by RP Data’s national research director Tim Lawless, who told The Adviser earlier this month that Brisbane currently offers the greatest potential to investors.

According to Mr Lawless, the south east corner of Queensland continues to record strong population growth and some of the nation’s largest infrastructure projects are being developed in this region.

“The price gap between Brisbane and Sydney and Melbourne has widened over the last year as Melbourne and to a lesser extent, Sydney, recorded significant value gains,” Mr Lawless said.

“For investors, rental yields in Brisbane remain above average and the unit market in particular provides very good value for money. The median price for a Brisbane unit is just $381,000 – the third lowest of any capital city after Hobart and Adelaide.”

 

 

Jessica Darnbrough

Residential investment opportunities are swelling in Brisbane as clearance rates drop well below other capital cities, accounting firm Chan & Naylor has said.

According to Australian Property Monitors, only 11.8 per cent of listed properties were successfully auctioned in Brisbane over the weekend – down significantly on the previous weekend when over 30 per cent of properties were cleared.

“There is a real lack of competition among prospective buyers, which spells opportunity for investors with an eye on the longer-term,” Chan & Naylor chief executive Sal Carrero said.

“The Brisbane slump can be attributed to successive increases to interest rates, and it could be argued that affordability has hit a ceiling in this market.  Buyers are certainly more cautious.”

Mr Carrero said investors who want to add to their portfolios should consider taking advantage of the lack of competition in the market place.

This sentiment was echoed by RP Data’s national research director Tim Lawless, who told The Adviser earlier this month that Brisbane currently offers the greatest potential to investors.

According to Mr Lawless, the south east corner of Queensland continues to record strong population growth and some of the nation’s largest infrastructure projects are being developed in this region.

“The price gap between Brisbane and Sydney and Melbourne has widened over the last year as Melbourne and to a lesser extent, Sydney, recorded significant value gains,” Mr Lawless said.

“For investors, rental yields in Brisbane remain above average and the unit market in particular provides very good value for money. The median price for a Brisbane unit is just $381,000 – the third lowest of any capital city after Hobart and Adelaide.”

 

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
At the top of his game: how this agent evolves to stay number one

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?