Residential investment opportunities are swelling in Brisbane as clearance rates drop well below other capital cities, accounting firm Chan & Naylor has said.
According to Australian Property Monitors, only 11.8 per cent of listed properties were successfully auctioned in Brisbane over the weekend – down significantly on the previous weekend when over 30 per cent of properties were cleared.
“There is a real lack of competition among prospective buyers, which spells opportunity for investors with an eye on the longer-term,” Chan & Naylor chief executive Sal Carrero said.
“The Brisbane slump can be attributed to successive increases to interest rates, and it could be argued that affordability has hit a ceiling in this market. Buyers are certainly more cautious.”
Mr Carrero said investors who want to add to their portfolios should consider taking advantage of the lack of competition in the market place.
This sentiment was echoed by RP Data’s national research director Tim Lawless, who said earlier this month that Brisbane currently offers the greatest potential to investors.
According to Mr Lawless, the south east corner of Queensland continues to record strong population growth and some of the nation’s largest infrastructure projects are being developed in this region.
“The price gap between Brisbane and Sydney and Melbourne has widened over the last year as Melbourne and to a lesser extent, Sydney, recorded significant value gains,” Mr Lawless said.
“For investors, rental yields in Brisbane remain above average and the unit market in particular provides very good value for money. The median price for a Brisbane unit is just $381,000 – the third lowest of any capital city after Hobart and Adelaide.”