Australia’s top performing markets
Whether investors are purchasing their first property, or looking to expand their portfolio, now is the time to evaluate the marketplace and determine where the opportunities lie. Let’s take a closer look at our top performing markets across the country.
Brisbane stays strong after pricing boost
Ongoing reports of Brisbane’s strong performance this year are proving to be accurate as the city gears up for a strong finish to 2016. Following booms in Sydney and Melbourne, Brisbane’s house prices have continued to grow. CoreLogic RP Data’s Housing Market and Economic Update, highlights a 5.5 percent growth in dwelling prices in Brisbane for this quarter – a substantial amount more than Sydney which reached just 0.5 percent in the same period.
Brisbane’s development streak is set to continue as the population continues to grow rapidly. Mix this with low interest rates and affordability in comparison to its sister markets, and it’s clear that Brisbane is a wise choice for investors with a long-term strategy. With tourism on the rise, unemployment on the decline and a strong rental demand city-wide, purchasing an investment now is key for future dividends.
At the moment we’re seeing several suburbs with strong average rental yields sitting at 5 percent – including Greenslopes, Nundah and Chermside. With the median property price at $415,000, many Sydney and Melbourne investors have turned their eye to Brisbane for a more realistic investment opportunity.
Sydney surges through Autumn
Autumn has proved to be kind to the Sydney property market, seeing a strong quarterly growth of 6.6 percent. Although Melbourne remains the fastest growing market over the past 12 months, Sydney has certainly picked up momentum compared to the previous quarter. In May’s CoreLogic results, Sydney dwelling prices increased 3.1 percent in one month alone.
Although Sydney’s dwelling prices continue to lead the nation’s average, investing in Sydney remains a strong candidate for those investors who have the budget. The average yield is sitting at approximately 4 percent, and with property prices set to continue to increase, there are little signs of slowing down for this mega market.
There are two distinct markets emerging in Sydney. Sydney’s Western and South Western suburbs have started to plateau for two reasons – Affordability restraints have kicked in and there has been a surge in listings. The inner ring on the other hand has continued to see a price surge off the back of a 60 percent drop in listings coupled with strong demand and financial strength. Prospective sellers in this area are opting to hold onto their properties for longer.
Melbourne continues its trajectory throughout second quarter
Melbourne’s strong property dynamics are a force to be reckoned with after reporting a 13.9 percent increase in home prices over the past 12 months. The market is predicted to stay this way throughout the remainder of 2016 as experts believe low interest rates remain a big driver of property movements.
Melbourne is Australia’s fastest growing capital city, according to the ABS. From June 2014 to June 2015 population grew by 1.7 per cent. Development has grown to meet demand, but population growth is absorbing much of it.
Population Growth June 2014 – June 2015
With an impressive infrastructure hub including universities, trams, trains and buses already in place, western Melbourne is a key player in the Victorian property landscape. Much like Brisbane, developments are set to continue providing ample parks, walking trails, playgrounds and leisurely amenities for current and future communities.
Current property values can see an investor pick up a three-bedroom, two-bathroom house for just $320,000 in Werribee, located southwest of the CBD. Reservoir, Preston, Coburg and South Kingsville are also on expert’s lists for buyers in the market for a long-term investment.
If you’re an investor looking to break into the property market or expand your portfolio, contact me today on 02-9522-3000 to discuss your options.