Property values ​​in Brisbane struggle a little, but the rental market could recover.
Just like the real estate markets in Sydney and Melbourne, Brisbane also suffered a slight shock. The annual growth rate of its growth rate fell for the first time in seven years. In its March 2019 Property Pulse report, CoreLogic indicated that real estate prices in that city had dropped 0.4% in the 12 months to February 2019.
It seems that the time to invest in capitals is over and many experienced investors are now turning to other markets in the Sunshine State to develop.
"[Savvy investors] found that the growth period was at the end of the cycle. They have increasingly turned to the states and regions for lower entry prices and better growth prospects. Right now, all roads lead to southeastern Queensland, "says James Nihill, managing director of Patrick Leo.
"Real estate prices in southeastern Queensland are on the verge of a growth phase after a decade of stagnation. It has never known the crazy growth that Southern states have experienced, but economic indicators are good for sustainable and moderate growth. "
The low values ​​of this market make it less likely to be caught in the fallout of tight lending restrictions. Increasing interstate migration is also fueling population growth, while infrastructure efforts are adding to the attractiveness of the region. The other Queensland regional districts expected to grow in the near future are Logan and Ipswich.
The rental market looking for roses
Queensland has also become the ideal place for investors seeking to generate a profit on rent – it is considered a "homeowners' market" in Brisbane, where the boom in construction had reached its heyday a few years ago, we witnessed the drop in the vacancy rate. from 4.0% to 2.6% in February 2019, "said Matthew Lewison, director of OpenCorp.
"It took only 13 months for this incredible change in the vacancy rate, and our real estate administrators are already telling us that rents are starting to increase rapidly."
The strengthening of the rental market follows reports of population growth in Queensland, suggesting that much of this demand comes from new interstate migrants. This could stimulate the investment activity.
SUBURB TO MONITOR
ORMISTON: Apartments are properties of choice
Ormiston has a burgeoning housing market located 25 km from Brisbane, reflecting the growing popularity of the apartment market.
The median value is $ 410,000 after five years of double-digit growth since February 2014. In the last year alone, prices have risen by 10.4%.
The average discount on this market is also quite low, at only 2.8% in December 2018. In the meantime, rental yields are very high at 5.3%.
In contrast, house prices fell 4.8% in February 2019, bringing the median value down to less than $ 650,000, despite an average discount of 4.9% in December 2018.
Affordability: A low median unit value of just over $ 400,000 keeps demand high
Location: Ormiston is less than an hour's drive from Brisbane via the M1
Top suburbs:
month-end
,
Melton
,
Toowong
,
Canterbury
,
Thebarton
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