According to The Australian Financial Review today, the gap between Sydney and Brisbane house prices is starting to bear fruit for developers and vendors in the Queensland capital with dozens of southern buyers taking the plunge.
Sydney based hospitality worker Chris Theodosi has just bought a three bedroom house in the Brisbane's bayside suburb of Wynamm West for $494,000. It was his first trip to the city.
"Brisbane is in the right phase of the cycle," Mr Theodosi said, "I think Brisbane will catch up again with other cities over the next five years and that's why I have bought there."
"Some of the properties we missed out on buying [in Brisbane] I asked the agents and they said it was purchased by someone from interstate," Andrew Theodosi said.
"I think people are aware of the gap in value [between Sydney and Brisbane]. Sydney obviously has increased far too much for us to be investing there.
Listed developers such as Stockland and Mirvac have seen more Sydney buyers for Brisbane apartments and private developers such as Tim Gurner have also recorded as much as 40 per cent of investors were from Sydney.
In established housing RE/MAX Advantage's Tandi Gill said about 70 per cent of investors were buying houses in the $400,000 to $600,000 range.
RE/MAX expects that more of the properties coming onto the market will be high rise apartments. While the latest QBE LMI Australian Housing Outlook report prepared by BIS Shrapnel indicates some concerns over a potential oversupply of apartments in Brisbane RE/MAX does not foresee any such problems in Brisbane's Bayside.
"There is not much high rise development [in the Bayside] we don't have the area or rezoning that would lead to an oversupply," Mr Muscat said.
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