With strong investment sales over the past two years the amount of high grade investment property available within Brisbane has significantly diminished. However, “until now, the surplus supply hangover from the GFC has kept a lid on rising property prices” says Nexus Private Director, Stephen Vick.
Now that the surplus supply has been largely taken up, we are starting to see stronger Brisbane property prices evidenced in the Financial Review article ‘Brisbane property prices go into overdrive as investor demand surges’.
The article highlight’s the dramatic shift in Brisbane property prices from six months ago, when only 18 of Brisbane’s 195 suburbs were experiencing price growth in double-digit figures. That has increased to 35, according to PRD Nationwide’s latest Brisbane Hotspots report.
In some cases, the turnaround is dramatic; six months ago, units in the inner south-eastern suburb of Coorparoo were falling at a rate of 6 per cent. Now they are growing at a rate of 10.7 per cent.
According to PRD Nationwide’s national research manager Dr. Asti Mardiasmo, “It is a big change for a city in which annual price growth had been between 3 per cent and 5 per cent, and maybe 7 per cent if you’re lucky. There are now suddenly all these suburbs that have double digit growth that they’ve never seen before. It’s kind of going nuts” Dr Mardiasom says.
While Brisbane house-price growth has lagged behind increases seen in Sydney and Melbourne, compared to the large southern cities, Brisbane still represents affordable property investment.
It’s this affordability combined with Brisbane’s recent price growth and the highest rental yields of any of the five mainland capitals (houses at 4.4 per cent and apartments at 5.4 per cent at the end of August tracked by data provider CoreLogic) that is attracting the attention of investors near and far.
Main image source: Choose Brisbane