When investing in property anywhere in the world, there are a number of different tactics that people will adopt. One of the most savvy and popular of these is to seek out a market wherein there are relatively low prices, but a real potential for growth in value and returns.
For those investing in Australia, this appears to be a tactic that is becoming more prevalent, with fewer buyers now turning towards the hottest areas of the property sector such as Melbourne and Sydney. Although these two cities have seen the highest rate of price increase in the last few years, they are expensive to buy in and have the potential for levelling off relatively soon.
Instead of these cities being investment hotspots, what we are now seeing is a rise in the number of buyers who are looking towards places like Brisbane, where rises are still happening, but prices are at a far more affordable starting point.
“Investors are seeing Melbourne and Sydney performing very well and they’re looking for alternative markets that they think they can get in before the market starts to move,” Property Investment Professionals of Australia chairman Ben Kingsley said.
The organisation surveyed investors from across the nation, and found that 58 per cent of people looking to buy in the next six months to a year will be trying to do so in Brisbane, a change from recent times where the other two capitals have been far more preferable.
Mr Kingsley said this could be because of the fact Melbourne and Sydney are expected to slow down in the next few months.
“Probably over the last six months there has been some speculation in the Sydney market, and the Melbourne market is enjoying a good spring but I suspect that will slow down into 2016," he said.
Overall, investment sentiment in the Australian market remains high, with some two-thirds of investors looking to buy in the year ahead, according to the results of the survey.