Brisbane has experienced over 6% growth in median housing across the last 12 months according to Core Logic’s recent data. It clearly shows there is a lot going on with regard to interest across the greater region, with houses leading the way at 6.07% growth whilst units are at 2.67%.
Clearly these results are outlining the continued interest for housing in this region of Australia, predominantly due to both its higher yield outcomes and lower median prices. Many however may not realise that it has quickly moved from a large town to a thriving city very quickly and become a more self sufficient destination for more owner occupiers and local investors alike. Sure it has its higher percentage of migration up from the cold south each year, but its been the continued investment into infrastructure, careful planning as well as its geographically favourable position as the hub of Queensland (given its accessibility to the sunshine coast, bays, Ipswich, Toowoomba and the Gold Coast) that continues to push its population north. Its expected to achieve another 1 million new residence within the next 14 years according to the ABS and that may be required to soak up some of the inner city apartment development that has occurred of late. It will still require more investment to cater for this growth and thus providing more work, stability and growth for the city for a number of years.
As buyers agents what is somewhat concerning is the mere fact that investors from the south feel that they are getting great value when purchasing up in Brisbane with its median prices in the mid to high $500,000’s but more needs to be analysed than the buy in prices for the novice punter.
Firstly Brisbane is growing rapidly but it is still fairly small, so proximity to amenities, transport, schools, major shopping centres and the CBD are all of significant importance regarding the growth potential of a site. Also many interstate investors may not see many hidden costs with the old traditional Queenslanders that are more common than any other building type. Although they are a desirable building to own, they can often come with hidden costs and need money invested in them to make them into the dream house or investment.
You also should never compare price to your own city and therefore justify its value based on this. Brisbane is its own city with positives and negatives and we often see interstate investors paying over $100,000 over the market value (on comparables) just because it seems cheap from a Sydney siders perspective.
It’s also important to understand the local town plan when purchasing a property that may have some hidden upside, or on the flip side may present you with some major challenges that can turn from a dream to a nightmare just as easily! Slopes and contours, easements, flooding, manholes, character overlays are some of bare minimums required to review prior to purchasing a house to try and mitigate or avoid these costly mistakes.
Simple advice is to be smart and savvy and do your due diligence and homework before investing as property investment is not pot luck or guesswork, its a calculated art and its all about the numbers, not emotion.