The Domain Group rental and house price report is in for the 2016 December quarter… and seems that Brisbane property buyers have a lot to smile about, given the report revealed that the median cost of property in Brisbane is now almost half that of its Sydney equivalent. Guess it comes as no surprise then that more and more people are opting to migrate north to sunny Brisbane. From housing costs to the local economy, we tap into some key factors as to why.

Here at HSBP we have seen the writing on the wall for some time; for us Brisbane seems like the obvious choice for Australian investors. But, like we tell our clients, research is an imperative part of being well-informed. So we did our research. The numbers told the story. Our original opinion remains – Brisbane is still the obvious choice when it comes to property investment.

In fact, looking at other recent articles, it seems that other investors are now starting to catch on – especially Sydney! Why would they not, given that the median house price in Sydney is almost double that here in Brisbane.

According to the Domain Group report for the recent December quarter, current median house prices for both cities are as follows:

•  Sydney’s median house price is $1.1 million
•  Brisbane’s median house price is $540,000

Why such a big difference in two Australian cities? According to an editorial on domain.com.au Real Estate Institute of Queensland chairman, Rob Honeycombe says the economic performance of New South Wales over Queensland in recent years was partly responsible for the huge price differential.

Honeycombe also said that as a result of Sydney’s ongoing property prices increasing, Queensland has been a long and happy recipient of strong interstate migration. A trend he feels was likely to continue given the property price disparity between the two states.

In fact, population figures for the June quarter 2016 show that interstate migration into Queensland is already on the rise. With the latest quarterly interstate migration increase of 3,328 proving the highest since December 2008, according to recent analysis by Propertyology.

Where are the buyers coming from? Seems that Sydney investors know a good thing when they see it, as it appears that a lot of this migration activity is coming straight from New South Wales.

Principal of HS Brisbane Property, Hannah Schuhmann says they too have noticed an increase in the number of enquiries coming from Sydney investors looking to purchase property in Brisbane.

“A growing percentage of our buyer enquiries are coming from Sydney-based investors,” she said.

According to Propertyology buyers’ agent and market researcher, Simon Pressley, the sunshine state recorded three consecutive quarters of interstate migration growth.

In fact, recent Propertology research indicates that more than 3000 are shifting to Queensland every three months, meanwhile New South Wales recorded the opposite with three quarters of constant declines. This speaks volumes when it comes to interstate migration numbers.

Pressley feels that the main reason they’d be leaving NSW is because of housing affordability.

He said there are clearly plenty of jobs in Sydney but housing affordability seems to be turning some people away.

“If Queensland can get its act together with a confident economy, we’ve got the foundation for a boom.”

Honeycombe agrees, saying that Queensland’s employment fortunes are on the improve, which, along with housing affordability, will underpin future strong interstate migration growth into the state.

“The house price gap is just too large… people can save so much money by making that move, and that’s going to start to become very attractive for those who either already own a home in Sydney or who are weighing up the option of buying in Sydney,” he said.

Along with Honeycombe, Pressley and the current reports, we know all too well that Brisbane’s property prices are attracting an increase in the number of property buyers from interstate.

With more and more people (both investors and tenants) moving to Brisbane to chase work, employment opportunities and increased lifestyle benefits… as well as lower property prices, now is a great time to consider buying that dream apartment in the heart of the Brisbane CBD.

For more information or to schedule an appointment, contact the HSBP team on 0419 782 133.