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3 Reasons Why You Should Invest in Brisbane Property over Sydney or Melbourne

3 Reasons Why You Should Invest in Brisbane Property over Sydney or Melbourne

If you’re thinking of buying real estate property in Australia, most likely Sydney and Melbourne are on top of your list. These 2 cities are widely recognized as the centers of business in Australia and are popular tourist destinations.But here are 3 reasons why you may wish to consider investing in Brisbane over Sydney or Brisbane: 1. Higher Population GrowthPresently, Brisbane is in a situation where it has an over-supply of dwellings. In the 3rd Quarter of 2016, Brisbane had 68,000 dwellings under construction. However, the population increased modestly by 42,000. Overall, Brisbane’s population grew by only 1.4% from 2015 to 2016.Slow population growth combined with a surplus in dwellings has dampened increases in property prices the past 2.5 years (See Fig. 2).But all of that is about to change. Fig 2 Population & migration: regional swings – After growing at a significantly faster pace over most of the last decade, Qld & WA population growth rates have slowed markedly, whilst surging net migration flows into NSW & Victoria have driven a lift in population growth in Australia’s South East.  Price differentials have increased between Brisbane and its counterparts from the South, Sydney and Melbourne. The differences in pricing have grown to a point whereby property in Sydney and Melbourne could buy property in Brisbane by 2.2 times and 1.5 times respectively (See Fig.1). Fig 1 House price relativities – Price differentials between Sydney and Melbourne, relative to Brisbane, have reached stretched levels, which have historically been followed by multi-year reversions.  Put simply, prices of real estate in Sydney and Melbourne are no longer affordable that investors and property buyers are...