One of the biggest banks in the country has picked Brisbane as the best city for capital growth this year, with Queensland also emerging as one of two states to see higher-than-average house price growth.
The latest National Australia bank Residential Property Index tipped Queensland and Victoria as the most optimistic markets, with house prices to rise 2,1 per cent in Queensland and 2.2 per cent in Victoria, compared to a pared-back national average of about 1.5 per cent.
NAB chief economist Alan Oster said that Brisbane was the best city for capital growth this year (5.7 per cent), followed by Sydney (4.1 per cent) and Melbourne (2.7 per cent).
The NAB survey had some bad news for renters though, with rental growth expected to be strongest in Queensland and Victoria this year.
Southern investors are buying up investment properties in Brisbane fueling the recovery in the city’s property market in a bid to get more value for their dollar.
With prices booming in Southern capitals and forcing out house hunters, Sydneysiders and Melbournites are turning attention north and splashing the cash on Brisbane investment properties.
Real Estate institute of Queensland say the interstate investors are leading the recovery in the Brisbane property market as they embark on shopping spree through our sought after suburbs.
Real Estate Institute of Queensland chief executive Anton Kardash said investment from interstate and overseas had been a “significant proportion” of the recovery in Brisbane’s market.
“The investor market has been the one, particularly in the sub -$400,000 range, that’s really been keeping the market very much alive over the last probably 18 months,” he said.
He said despite moving into a “Growth phase”, there was still “very good buying” for investors across the south east corner of Queensland.
“South Brisbane rents are the best for a blue-chip suburb anywhere in Australia,” Positive Real estate chief executive Sam Saggers said. Yields are pressing 6.5 per cent if you buy well.