Brisbane property posts gain for month

Brisbane property prices built on strong winter gains in September, with values rising 0.7 per cent for the month.

Figures released by RP Data last week show Brisbane was second only to Sydney, which posted a 0.8 per cent rise in what was a relatively flat month for property values in Australia’s capital cities. It followed the strongest winter-month growth in house prices since 2007.

Even with the recent gains, Portfolio Management Services’ acquisitions team continues to find Brisbane investment properties that fit its criteria for successful property investment. It was particularly relevant for property investors with a budget in the $600,000 to $700,000 price range, said Portfolio property acquisitions adviser David Powell.

“Brisbane is an easily accessible market for investors looking for houses in that range, whereas in Melbourne and Sydney you need to look a lot harder,” he said. “It is a good alternative for first or second-time investors in particular.”

While a three-bedroom house on a 400sqm block within 10 kilometres of the CBD would typically cost more than $1 million in Sydney and the best part of $1 million in Melbourne, Portfolio is finding similar properties in Brisbane for $600,000 to $700,000, often within 5 kilometres of the CBD.

Mr Powell said Brisbane presented an interesting opportunity for property investors. Prices fell 25-30 per cent in a 24-month period including the 2011 Brisbane floods and 2012 Queensland election; they had since recovered to levels typically seen 3-4 years ago.

“Prices are coming off a very low base – there is a lot more room for growth compared with some areas,” Mr Powell said. “It’s a good place at the moment to be.”

The challenge though is finding the best property investment options.

Inner-Brisbane apartment construction is booming, with an unprecedented amount of stock aimed at Brisbane property investors about to hit the market at the risk of creating an oversupply in some areas.

Analysts expect about 5500 new apartments have or will become ready for sale in Brisbane in the second half of this year. It follows a record-breaking year for off-the-plan apartment sales in Brisbane in 2013.

Unlike many firms in the Brisbane investment property market, Portfolio continued to focus on houses rather than apartment living options, Mr Powell said.

Everything from rising vendor expectations to insurance issues arising from Brisbane floods made market research crucial for anyone in the Brisbane property investment market.

“Investors need to be very picky about what they buy,” Mr Powell said. “Our clients pay us to do that research and find property that will make a successful long-term investment for them.”

To find out more about how Portfolio Management Services can help you achieve your property investment goals in the Brisbane market, call today on 9621 1044.