Despite the majority of the focus being on Sydney and Melbourne, a property researcher has revealed that neither city gives investors the best bang for their buck.
Propertyology’s head of research, Simon Pressley, has revealed that Canberra ranks first amongst Australia’s eight capital cities.
“Step one in answering [Australia’s] best capital city is considering the property market fundamentals pre-COVID.
“Step two involves adding in the new layers created by the germ’s impact on society,” Mr Pressley said.
However, Mr Pressley highlighted that property type is important, with Canberra’s attached properties facing strong headwinds.
“Canberra has shot to the top of capital city rankings. This forecast is for detached housing – Propertyology believes that Canberra attached dwellings has a soft market outlook for many years to come,” the researcher continued.
Mr Pressley said the primary reason Canberra is Australia’s top capital city is due to a lower economic impact from COVID-19.
“Canberra’s economy was already strong before the germ arrived. And with approximately 100,000 of its 213,000 workforce in the public sector, it will be significantly sheltered throughout the COVID job lockdown period,” he noted.
Coming in second place is in the north, with Brisbane ranking second due to strong fundamentals but weak economic data.
“Brisbane’s property market is in second spot. Propertyology has been publicly critical of Brisbane, and we remain unchanged from our long-held view that Brisbane’s soft private sector job growth is an important missing link for otherwise solid fundamentals,” Mr Pressley said.
Rounding out the medals is Australia’s south, with Hobart being Australia’s third best city to invest in.
“Hobart still has reasonable medium-term credentials, including this month’s commitment from the state government to embark on the biggest construction program in the state’s history,” Mr Pressley concluded.