Brisbane property is set to boom over the next few months so why not get involved?
Brisbane residential property is expected to perform strongly over the medium term as it catches up with other East Coast capital cities, according to a report by Place Estate Agents.
In the report "Why Invest in Brisbane", researcher Lachlan Walker says that in past cycles Brisbane property prices have trailed those of Sydney and Melbourne by about two years.
"Based upon historic property cycles, Brisbane has on average been approximately two years behind the larger Australian markets of Melbourne and Sydney," Mr Walker said.
"Given that both Sydney and Melbourne have entered periods of robust growth during the past 12 months, recording a median price growth of 17 per cent and 11 per cent respectively, Brisbane is likely to follow suit in the short term."
Mr Walker said another factor that was anticipated to drive price rises was the increasing disparity in median house prices between Brisbane and the other capitals, with Brisbane currently 11 per cent cheaper than Melbourne and 36 per cent cheaper than Sydney.
"This provides an affordable alternative for investors, while rental yields in Brisbane are also increasing," Mr Walker said.
"Brisbane apartments are currently able to provide between 5 and 6 per cent return on investment given its increasing undersupply."
The report said that Brisbane is expected to face an undersupply of dwellings as the population is forecast to grow by 1 per cent per annum over the next 20 years.
"Considering Brisbane's predicted population growth, there is a forecast need for 138,000 new infill apartments, equating to a need for 17 apartments delivered per day," Mr Walker said.
"This demand has never been serviced historically, and given the finance constraints and development approval processes, this is unlikely to occur moving forward. The result will be an undersupply of residential dwellings in Queensland's capital city."
Mr Walker said that the best time to buy was during a period of market weakness.
"The greatest returns, and individual fortunes, have their roots in real estate down turns," he said.
"The opportunity to buy in a subdued market is greater and growth achieved is generally above average as a result."
For more information visit www.eplace.com.au