When the southern interest starts to rise…
Queenslanders like beating NSW in the football. We love to boast of our climate when we’re talking to Victorians. We generally like to think we don’t need them, and life up here goes on beautifully without them. But in Brisbane’s inner city we have a long-term relationship, reliance even, with property investors from our southern states.
In the early 2000’s it was Sydney-siders who really kick-started much of the new highrise development in Brisbane’s CBD and surrounds, investing in our market when fewer locals recognised the opportunity. They understand the trend to city living was no short-term fad and they saw what our city might become. So we’re watching with interest as southern investors are returning to our market in increasingly noticeable numbers.
RP Data reports Sydney home prices are now just 1.3% below their peak. Over the past quarter they’re up 2.8% and Melbourne’s rebounded too, up 3%. Their home-owners have equity and they’re not afraid to use it. To spot an opportunity and to buy an investment in strong locations before prices start to rise again.
Even with our ‘refreshing-even-if-only-tiny’ lift of 0.8% in the past 3 months the gap between Brisbane and Sydney dwelling prices is now more than 12%. We look cheap. A modern apartment in our near-city, priced below $450,000 and returning over $500 per week? Hard for many of them to resist.
Brisbane’s market has all sorts of harbingers and precursors of better times. The analysts say our sales volumes are up and average days on market are down. But for us one of the best signs is the busy weekend visits from our blessed investors from Sydney.
Might be time to buy one of those blue jerseys!