Next Capital City to Boom
Just a brief note for the end of the week to share a couple of stories which resonate with me in relation to information we have been compiling over the course of 2013. “Brisbane will be the next Australian capital city to take off, according to a panel of property experts.” These two articles should be of interest to everyone who is looking to invest in the Australian property market as it relates to two of the most dynamic state capitals in the nation.
Dr Andrew Unterweger
Next capital city to boom
by Vivienne Kelly | 15 November 2013
Brisbane will be the next Australian capital city to take off, according to a panel of property
Speaking at a recent Smart Property Investment roundtable, Propertyology’s Simon Pressley, Destiny Financial Solutions’ Margaret Lomas, property lecturer and author Peter Koulizos, Empower Wealth’s Ben Kingsley and ProSolution Private Client’s Stuart Wemyss all agreed Brisbane would be the best performer over the next two to four years.
Mr Pressley said it would be “Brisbane by a mile”. However, Mr Wemyss contended Sydney
would remain a top performer.
Ms Lomas, however, said even if Sydney continued its solid performance, investors would be
smart to look at Brisbane.
“If you’re considering today, you’ll get better growth in Brisbane,” she said. “A lot of this has
already happened in six months in Sydney. They’ll probably both perform equally, but the base
is lower in Brisbane.”
Mr Pressley said Sydney will continue to perform better than the Sydney average, but said he
wouldn’t invest in the New South Wales capital “because of affordability”. read more …
Sydney buyers losing power in marketplace
Homebuyers and investors in Sydney are becoming disempowered and have less room to negotiate as the market heats up, according to a leading property analyst.
Speaking at a Multifocus Properties and Finance event last night in Sydney, RP Data’s national research director, Tim Lawless, said the Sydney market currently favours sellers rather than buyers.
According to Mr Lawless, it is taking an average of 44 days to sell a property across Australia’s capital cities, but the most recent data indicates this number is as low as 27 days in Sydney.
Mr Lawless said rental yields in Sydney were also being eroded due to the high capital gains the city is experiencing, combined with slow-moving rents. He said this trend is difficult to overcome in the current market because it’s less likely investors will be able to nab a bargain.