FOUR out of 10 southerners now looking to sink their savings into real estate were asking about investments in South East Queensland, according to latest buyer inquiry data.
Cohen Handler, a buyers’ agency group that previously only acted for those looking at property in Sydney and Melbourne, saw a 30 per cent spike in investment inquiries in the past year – four out of 10 of whom were asking about Brisbane and its surrounds.
With demand running hot, the firm set up a Brisbane office, run by buyers agent Jordan Navybox, who said a noticeable shift was under way.
“It’s 30 per cent up on last year but of that 41 per cent are inquiring about Queensland and certainly areas outside of Sydney and Melbourne where price rises are out of control.”
CoreLogic RPData economist Tim Lawless said Sydney buyers were “doing it a lot tougher” than most at the moment – which was why many were looking to SEQ where prices were significantly better.
“Investing rather than living in it is getting bigger,” he said. “When you speak to real estate agents you are seeing that trend. SEQ is offering much higher rental yields so many people are looking there for investment.”
Mr Navybox said the average household income of $150,000 was stretched in Sydney given escalating house prices, which left little behind for investment.
“When you’re looking at Sydney prices of about $1M and come back to Brisbane at about $500,000, it’s a no brainer.”
Inquiries were coming for properties in Toowoomba, Nerang and inner Brisbane suburbs including Hamilton, Bulimba and Paddington.
Rain and floodwater saw Brisbane lag behind major capital cities when it came to median house price increases – “an anomaly that’s likely to be corrected by above trend market growth in the short to medium term”, according to the firm.
Sydney northern beaches resident, Ash Radford-Sutton, 29, is one of those keen to capitalise on prices in South East Queensland, after being increasingly priced out of his hometown.
Mr Radford-Sutton, a Lane Cove tennis coach, said he was hoping to get his foot in the door with a unit priced around $300,000 in either Brisbane or the Gold Coast.
“My parents have bought and sold houses through the years, and they’ve always said the earlier you get in the better. In the past I’ve been pipped at the post or it’s not been the right time.”