The Greater Brisbane property market is experiencing positive signs for both rental and price growth, which has not been seen since the peaks of 2007. There has been several positive factors that have impacted the market; economic and job growth, population growth, low inflation, low interest rates, increased infrastructure and mining spending are the main factors that have generated this optimistic outlook.
It has been well documented that Brisbane average house prices have not seen large growth over the past decade compared to Melbourne and Sydney. This represents an amazing opportunity for the astute property investor or owner occupier to take advantage of the most affordable housing on the Australian Eastern Seaboard.
We have witnessed high buyer demand over the past 6 months because of a number of permanent residents who invest in term deposits are now looking to secure higher investment yields than what the banks are offering. These investors have a dilemma – they need to continue to fund their retirement, but they cannot find a suitable vehicle to achieve their required return. The Brisbane Inner City property market can offer approximately 4 – 5% net yield, which will continue to improve with expected capital growth and minimal risk compared to the fluctuations of the domestic and international equity markets.
As a result of these factors, both the housing and apartment markets are starting to see a limited amount of properties being offered to the market as owners are confident there will be a greater gain in the coming years.
Long suffering Brisbane Inner City apartment owners now have the opportunity to operate in a far more favorable marketplace as property experts are predicting rental yields to increase on the back of approximately 50,000 people moving into Inner City Brisbane to take up the abundance of job opportunities which are being generated via the history making infrastructure spending in the Brisbane City along with continued mining investment and tourism growth in Queensland.
This provides an opportunity for property owners who are considering selling to capitalize on market conditions not seen this decade. In my opinion the best time to sell any asset is when there is limited to no competition for the purchaser to choose from. This will generate competition, attractive selling terms and confidence in the marketplace.
The basic fundamentals of the Brisbane Inner City property market far exceed any other town, city or state in Australia. There is no where else in this country where you can acquire affordable housing, excellent rental yields, high projected population growth, guaranteed job growth and infrastructure spending. These factors are clearly the backbone of price growth in the property market.
Please refer to other articles on this website that clearly outline all infrastructure projects, the outlook for job and population growth and the exciting times ahead for Brisbane City.