As many of you know, Aviate’s research and market analysis has shown there’s simply too much heat in Sydney property prices at the moment. There is a risk investors could pay too much for an investment property, whereas select markets in Brisbane, for instance, have a far greater capacity for investment upside. Just in case you missed it, our Managing Director Neil Smoli’s perspective was picked up in last Thursday’s edition of The Australian Financial Review in the Smart Money section. Here ‘s an excerpt from the story entitled ‘Property pie in the sky’ (AFR April 17-21, 2014):
Property pundits tip Brisbane as the next city to experience a rise in values and investment. Neil Smoli, managing director of Aviate, says new infrastructure projects, projected economic growth and a housing undersupply will tip the investor market in Brisbane’s favour. He avoids “hot spots” – pockets that the broader market has cottoned on to and where prices are inflated.
“Instead, we focus on markets primed to outperform over the long term. While we understand that many investors are attracted to Sydney, we won’t recommend investing in property in Sydney in the current climate,” Smoli adds.
A look at prices between the capitals also offers an insight as to why more investors are considering buying off the plan in Brisbane. The median unit price is $359,000, compared to $448,000 in Melbourne and $552,500 in Sydney.