Investment property demand remains high near CBD

Property prices have continued to rise across Melbourne, Sydney and Brisbane over the past year, and nowhere more so than in suburbs close to each CBD where Portfolio Management Services has previously found the best investment property opportunities for clients.

RP Data figures for July, released last week, put the average annual increase in values for Sydney at 14.8 per cent and Melbourne at 11 per cent. This follows Australian Bureau of Statistics residential property price figures for the June quarter showing average annual prices rises of 15.6 per cent in Sydney, 9.3 per cent in Melbourne and 6.8 per cent in Brisbane.

Demand remained particularly strong across suburbs close to the CBD in each of the capitals, said RP Data senior research analyst Cameron Kusher.

“With mortgage rates low, buyers are battling it out to purchase those homes close to the city centre,” he said in a recent report on the most affordable inner-city suburbs. “Of course areas closer to the CBD tend to be much more expensive than those areas further away. Inner-city suburbs are also generally better serviced by both essential and desirable amenities such as schools, medical services, shopping centres, social amenity, roads and public transport.”

RP Data anticipates that home values in inner-city areas are likely to continue to increase, particularly as mortgage rates remain low.

Based on median prices, RP Data’s most affordable Sydney suburbs for houses within 10 kilometres of the CBD were Wolli Creek ($710,303), Waterloo ($761,054), Sydenham ($807,195), Beaconsfield ($811,261) and Tempe ($828,914).

Four of the five most affordable Melbourne suburbs for houses within 10 kilometres of the CBD are neighbouring suburbs in the west – Maidstone ($543,582), West Footscray ($571,961), Footscray ($592,211) and Yarraville ($655,993).

Portfolio Management Services continued to see good value for property investors around these suburbs, underpinned by proximity to the CBD, schools and tertiary education facilities, said the company’s Director Acquisitions Grant Edmund.

Making up the top five was Bellfield ($533,252), which is close to some of the fastest moving suburbs price-wise to the north of Melbourne.

Around Brisbane, the most affordable suburbs for houses close to the CBD were Rocklea ($330,848), Keperra ($416,036), Tingalpa ($456,878), Chermside West ($471,657) and Nathan ($473,513).

Portfolio Management Services sees value in many of the “northern ring” suburbs about 10-12 kilometres from the CBD, said Property Acquisitions Advisor David Powell.

“These suburbs, along with several other neighbouring areas, are attractive to us because of the excellent transport links with the CBD, larger block sizes, access to quality schools and in the case of Chermside, large quality shopping centres,” he said.

Property investment opportunities in Brisbane will be the subject of Portfolio Management Services’ inaugural market update conference call this month. To book you place or find out how Portfolio can help you reach your property investment goals, call today on (03) 9621 1044.