News

Brisbane Will Attract A Greater Level Of Investor Attention In Coming Months

By Melissa Feijoo

BRISBANE will attract a greater level of investor attention in coming months, driven by the “good value” still to be found here, according to one of the country’s big four banks.

The quarterly National Australia Bank housing market report found growth in house values in Brisbane (6.4 per cent) had “severely lagged” the combined capital city benchmark (9.3 per cent), but it also made it more attractive.

“Brisbane’s value growth performance has lagged its southern neighbours, creating a significant gap in housing prices between Brisbane, and Sydney and Melbourne,” the NAB report said. “As a result, we expect further growth in Brisbane home values over coming months, as well as growing interest from investors.”

NAB found investment lending made up more than a third of the total portfolio in the state.

“Over the past year, investors have averaged a record high 39 per cent of all housing finance commitments (nationally), which is the highest proportion of lending to the investment segment on record,” the report said.

NAB home lending general manager Melissa Reynolds said Brisbane had affordability and attractive rental returns, and there was investor interest driving inner city apartment sales.

“Median house values are more affordable compared to Sydney and Melbourne, and this is starting to generate greater interest, with sales activity 14.9 per cent higher than last year.”

She said with the outlook for capital growth in other markets diminishing, and gross rental yields for houses above 4 per cent and units above 5 per cent, investor activity within Brisbane was starting to pick up. But she warned “regard should also be given to the level of planned projects, with potential for oversupply developing in the future”.

The only Queensland suburb to make the national list of top 20 suburbs for house value growth was Quilpie, which saw values rise 43.7 per cent during the 12-month period to July.

Up to Date

Latest News

  • Ray White Marine sell ‘Argento’

    Ray White Marine just sold this 2012 Ferretti 881 Raised Pilot House ‘ARGENTO’, and for around $5.5m, it could’ve been yours. Designed to suit Australia’s remote and often harsh coastline, Argento was built from specification by one of the continents most respected shipbuilders for long range cruising and is beautifully … Read more

    Read Full Post

  • Ray White’s monthly White Paper (March)

    What happened to the markets in February? February is traditionally the bridesmaid to March as far as real estate activity is concerned. But not this year! Rarely before has the real estate market cranked into overdrive after the Christmas slumber. State records within the Ray White Group were broken all … Read more

    Read Full Post