Where to watch property in 2015
January 7, 2015 / Written by Rich Harvey
As we all know, 2014 was a bumper year for real estate in Sydney. If you're an owner of an investment property in the city then it is very likely that you saw strong value gains in your purchase, allowing you to either sell for a tidy profit or continue holding on to see what else might happen. If it just so happens that the expertise of a buyers agent helped you into that situation, make sure to thank them!
In the CoreLogic-RP Data Hedonic Home Value index for December, it was noted that year-on-year home value increases for the Harbour city reached 12.4 per cent, well above the second-placed Melbourne, which reached 7.6 per cent. The research organisation calculated total yearly gross returns on property in Sydney at 16.8 per cent, so you may see a lot of smiling home owners if you're in the New South Wales capital.
But according to the results, Sydney growth has slowed somewhat in the last month. Does that mean you should start looking elsewhere to buy investment property in Australia?
Sydney slows, others grow
While Sydney is undoubtedly the top option, the RP Data-CoreLogic report showed that in the month of December, home values in the city remained static, with no movement up or down. Instead, Hobart took the field by surprise by becoming the big mover, with 2.7 per cent increases in home values. Perth, Adelaide, Melbourne and Brisbane all saw increases as well.
So if you are looking to purchase a great property in Australia, it may be worth widening your search to include other cities such as Brisbane. Just be sure to engage the services of a buyers agent in order to assist you in selecting an appropriate property for your financial situation. Louis Christopher of SQM Research noted in his Boom and Bust report that Brisbane was primed for "modest to moderate" capital growth in 2015, particularly in eastern areas where vacancy rates are lower than elsewhere.
Future growth on the cards
In addition to the value growth anticipated, Master Builders Queensland have noted that building approvals in Greater Brisbane increased by 35.3 per cent across the 12 months to December. This indicates that more homes will soon become available in the Queensland capital.
If you're unfamiliar with the city, it is imperative to seek the advice of a buyers agent who can guide you to Brisbane investment properties that suit your income, your financial planning and your tastes.