Brisbane is poised for some excellent growth, according to one prominent buyer’s agent. But he says the million-dollar question is whether it is going to happen next year or next decade.
Right Property Group director Victor Kumar said that Brisbane is “absolutely” a good market to invest in, and the reasoning might not necessarily be just because of Queensland’s capital city.
“If you compare the median house pricing between Sydney and Brisbane, what you will find is that traditionally the difference between metro Sydney and metro Brisbane is about 26 per cent.
“Right now, we are sitting at around a 76 per cent differential. This is because, along with Sydney being over-inflated, Brisbane hasn’t had any major growth.”
Mr Kumar said that from a property cycle point of view, Sydney and Melbourne fire first and then Brisbane follows.
He also said that Adelaide is a consistent player, doing what it does.tends to run its own race and that
“So, if you are looking at it from the point of view that the major market is between Sydney, Melbourne and Brisbane, there is a big gap opening up between the median pricing in Sydney and Melbourne and Brisbane.
“So, to bring that back to normality, which is the 26 per cent, there are two things that will happen. One, the Sydney and Melbourne prices will contract, which is already starting in Sydney. Two, Brisbane will go through a natural growth curve, the same as which happens in every cycle.”
Mr Kumar said that the state government would do well to address the employment situation in Brisbane.
“That’s not to say there is a lot of unemployment,” Mr Kumar said.
“But if the government starts putting more facilities, more money into creating those jobs, you will have more interstate migration into Brisbane. The stats show that Brisbane now has the most intrastate migration happening.
“Combine that with the fact that for the same professions, occupations in Sydney and Brisbane, the difference in salaries is only 14 per cent. The money earned is not significantly different.”
But as far as when the Brisbane boom is likely to occur, Mr Kumar is unable to be definitive.
“We don’t know that,” the director said.
“Generally though, as the Sydney and Melbourne markets start cooling, you find that people start relocating their money into different states.”