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The rate of economic growth in Brisbane is currently double that of Sydney due to an increase in employment, interstate migration and extensive infrastructure projects.  However property prices in Brisbane are currently 50% lower than Sydney.  This price anomaly will not be for long, as Brisbane property prices will soon catch up.

We hosted a seminar for our members to learn more about the inside-outs of Brisbane property investments. Our speaker provided a Brisbane market outlook on top investment suburbs such as Hamilton, New Farm, Fortitude Valley, Newstead, Milton, Kangaroo Points, West End, Toowong and Sunnybank to name a few. Capri, a residential development in Brisbane, was launched at our event as well.

Above: Our relationship managers provided our clients with information about investing in Brisbane

Above: Cubie Chan, Product Development Director of Golden Emperor, shared information about Capri, a luxury development in the heart of Brisbane.

Southern investors are looking north to the Queensland property market as Sydney and Melbourne markets become too expensive to gain a foothold.

While the latest BIS Shrapnel report warning Sydney and Melbourne house prices will start to fall in 2016-2017 as interest rates start to rise, Brisbane, the Gold and Sunshine Coasts, are emerging as the more attractive destination for investors.

Despite a flat jobs market in south-east Queensland as the mining boom comes off the boil, Brisbane’s median house price of $475,000 is looking a lot more affordable than Sydney ($785,000) and Melbourne ($527,000).

It might be a while off from repeating the hordes of Victorians who fled north during the mid-to-late 1990s, but there is definitely an uptick in interest from investors as Australians focus on the Sydney property “bubble” and when it will burst.

Gold Coast real estate agent John Newlands said he had been inundated with calls from southern investors in the past few months looking to buy north of the Tweed.

“In the old days they used to come up with their suitcases and buy a similar house and have a bag load of money left over,” Mr Newland said.

“There is still a bit of that because Brisbane house prices haven’t caught up [to Sydney and Melbourne] – but we are starting to see more investors come back from interstate, especially in the unit market. They have been absent for a while because things have been so good in their own state. But there are definitely opportunities up here now.”

Mr Newlands said clients had commented about the expensive price tags in Sydney and Melbourne and they were attracted to the higher returns and the buzz and new infrastructure around the Gold Coast ahead of the 2018 Commonwealth Games.

Chinese investors have also been piling into the Gold Coast apartment market as well as funding their own developments, with over $600 million worth of Gold Coast development sites sold to Asian-backed buyers in the past year.

The BIS Shrapnel report found Queensland would largely be insulated from the dip in house prices in southern states, with further interest cuts later this year expected to make Brisbane homes even affordable.

Brisbane’s median house prices were expected to grow by a total 13 per cent over the next three years, while apartments will rise by 6 per cent.

CoreLogic RP Data released on Wednesday found Brisbane had the highest investment yields of the major metropolitan markets for both houses and apartments.

Source:Financial Review

Above: Home owners living near the Elizabeth Line have cause to celebrate

House prices along the Crossrail line have increased by 52pc since construction began in May 2009, outpacing the average house price growth in England during that time of 30pc.

The sharpest increases in property prices have been in Ealing, west London, and in Forest Gate, east London, which have seen growth of more than 60pc in the past seven years.

More than half of the 15 top-performing stops on the line are in zones three and four. The ‘Elizabeth Line’ is due to be fully operational in 2019.

Above: House prices in the postcode of each station on the western end of the newly named Elizabeth line

Zoopla, which carried out the research, used outcodes of each station to find out the movements of property prices since construction started. Outcodes cover a wider area than a postcode; for example ‘SW1′.

The average Elizabeth line property is worth £522,192, compared to the national average of £298,863 – a difference of 54pc.

Bond Street and Tottenham Court Road saw the highest price increases, although there are very few residential properties in that area.

Above: House prices in the postcode of each station on the eastern end of Crossrail

Those at the bottom of the list, including Twyford (up 38pc), Brentwood (40pc), and Reading (41pc), all saw price rises far higher than England’s average.

Lawrence Hall, of Zoopla, said: “Whilst these rises will be welcomed by current owners up and down the line, it’s a reminder of just how hard it is to get onto the London property ladder.

“However with the new line extending as far as Reading in the west and Shenfield in the east it’s likely the property markets at the outer ends of the line will become very competitive as we get closer to the opening of the line.”

Source: Telegraph

Sydney investors are increasingly buying properties in Brisbane solely on photographs and skipping inspections.Agents in Brisbane suburbs considered “unfavourable” said investors have boosted house prices in what have historically been more affordable suburbs.

These include Inala, Woodridge, Eagleby, Forest Lake and Slacks Creek, all 25 minutes south of the city. All featured in Queensland Police Service’s top suburbs for unlawful entry with intent in 2014-15.

White Knights Realty Logan agent Kym Whalan said blind-buying Sydney investors had flooded into​ the Logan market.

“Out of every 10 sales, five will be investors, and two will not have viewed the home, and that is a modest estimate,” he said.

“Often it seems as the investors have no idea about the area’s reputation. Or maybe they are overlooking them because of the good house prices.”He said a wave of Sydney investors had targeted Woodridge, a suburb of Logan , which boosted prices.

“I think locals might be wondering to themselves why it is becoming more expensive all of a sudden.”

Professionals Beenleigh office manager Lesley Waters said it was more common for Sydney investors to buy in Eagleby without viewing the homes first.

“We are seeing about 70 per cent of Sydney investors buying without seeing the homes,” she said, but added that she believed investors were well informed.

“I always make sure to explain the area to buyers, and make sure they are not under the wrong impression,” she said

“But investors are drawn to being close to the highway, the location between Brisbane and the Gold Coast and also good rental returns.”

But buying properties without seeing them prior have raised some issues between agents and investors

Coulson Real Estate Inala agent Daphne Orley had to drop the price of one of her homes after an investor complained about discrepancies between the photos and the property after buying.

“I dropped $7500 off of a house price that was bought from an investor who hadn’t seen the home because of cracks that did not show up clearly in photos,” she said.

Her past two sales in neighbouring southside suburb Acacia Ridge sold without inspection

LJ Hooker Logan City manager Tony Hall said that although investors bought blind, they were usually followed by an inspection from someone close to them.

“Sometimes you will have the buyers get someone they know in the area, like family or friends to view the property for them, and they will go off of that advice,” Mr Hall said.

“I have had homes crash after a follow up inspection, just as I have had homes go through after a follow up inspection.”

Other agents have enforced visual inspections

New Image Real Estate Marsden agent Christine Carroll has included a clause in her listings.

“I do not sell without a visual inspection. In my view it is the ethical thing to do, because it puts the ball into the buyers court, and at the end of the day I want them to know what they are buying and it is in the best interests of the buyers,” Ms Carroll said.

Source: Financial Reviews

The private rented sector is set to continue to remain popular within the UK, with an estimated additional 200,000 households renting every year.

Summary:

• The number of households who rent in the UK has increased by 135% since 1985
• Over 70% of households aged between 16-24 now live within the PRS
• UK property investment has outperformed other assets, increasing in value three times more than that of gold

The private rental sector could expand to include 40% of households.

Within the next five years, the UK population is likely to be split into those who rent and those who own multiple properties, according to research by lettings agent Martin & Co.

The popularity of the PRS has seen the number of households renting grow by 135% since 1985. However, there have been much more dramatic changes to the demographics of letting, with a 346% increase in the number of households aged between 35 and 44 in the sector over the past three decades.

Now 71% of households aged between 16 and 24 live in a privately rented home, up from 32% in 1986. It is a trend that is set to continue, with 200,000 new households entering the sector on a yearly basis.

According to the report, the sector has experienced the strongest momentum over the past 10 years, with over two million new households entering the PRS across England alone in 2012. The number of private rented properties overtook the social housing sector the same year.

Young professionals have a growing preference to rent, as the flexibility offered suits their lifestyle.

PRS has also steadily outperformed rival assets over the past 30 years. Residential property has grown 768% in the last 30 years, three times that of gold and twice that of shares in FTSE 100 companies.

Source: Select Property