The article analyzes survey data to identify the best cities and states for real estate investment in the US. Brisbane, Australia is ranked as the top location with 54% of investor votes, followed by Sydney and Melbourne. The data shows Brisbane offers strong fundamentals including population growth, job growth and affordability. Investors also prefer locations with high rental demand and opportunities to purchase undervalued properties. The analysis examines factors like market supply-demand dynamics, diversification benefits and total return potential. Key considerations include vacancy rates, tenant quality and access to capital.
Brisbane leads with over 50% votes on best prospects for real estate investors
The 2022 survey by Property Investment Professionals of Australia polled 786 investors on which capital city offers the best prospects for property investors. Brisbane received 54% of total votes, significantly ahead of 2nd place Sydney at 13% and 3rd place Melbourne at 12%. Compared to 2020, Brisbane’s vote share increased dramatically from 36% while Sydney and Melbourne declined. This indicates strong investor preference for the Brisbane real estate market.
Most investors believe now is a good time to invest in residential property
62% of surveyed investors said now is a good time to invest in residential property, though this is slightly below 67% in 2020. This indicates there is still positive sentiment for real estate investing despite some headwinds like rising interest rates. Investors prefer markets where properties can be purchased below intrinsic value before the next growth cycle.
Nearly half of investors expect next purchase to be interstate
The survey found 44% of investors expect their next property purchase will be located interstate, up moderately from 41% in 2020. This demonstrates investors’ preference for purchasing real estate outside their home states, likely in search of better yields and diversification. Brisbane’s rapid growth makes it attractive for interstate investors.
Most investors predict rising property prices over the next year
A strong 76% of investors predicted rising property prices in their state/territory over the next 12 months, a huge increase over 41% in 2020. This is likely driven by expectations for further population growth and tight supply after years of underbuilding in Brisbane and some other markets.
The survey provides powerful evidence that Brisbane, Australia offers the most attractive prospects for real estate investors currently, with superior population, job growth and affordability driving returns. Investors also continue to hold positive views on residential real estate, and are searching nationwide for yield and diversification.