When it comes to deciding which state is the best for real estate investment, a recent survey provides some valuable insights. The 2022 Property Investment Professionals of Australia investor survey polled 786 property investors on which Australian capital city offers the best investment prospects. An overwhelming 54% chose Brisbane, followed distantly by Sydney at 13% and Melbourne at 12%. The survey also found 62% believe now is a good time to invest in residential property and 76% expect property prices to rise in their state next year. Clearly, real estate investors see Queensland’s capital Brisbane as the hottest market with strong growth ahead.
Over half of investors say Brisbane has the best prospects
The 2022 investor survey asked participants directly: “Which capital city offers the best prospects for property investors?” Of the 786 who responded, 54% chose Brisbane compared to just 36% who selected it in 2020. So Brisbane has seen a dramatic 18% increase in investor confidence over the last two years. Trailing far behind were Sydney at 13% (down from 18% in 2020), Melbourne at 12% (down from 27%), and Perth at 9% (up from 6%). Brisbane offers an affordable alternative to the extremely expensive Sydney and Melbourne markets, while also benefiting from the Queensland economy’s strong momentum.
Most investors optimistic on residential property markets now
The survey also gauged overall investor sentiment on the residential property market. Despite looming interest rate hikes, 62% said they believe now is a good time to invest in residential property. This is down somewhat from 67% in the prior year’s survey, indicating there is still strong – if slightly moderating – optimism. As long as jobs and wages grow, renters and buyers should sustain demand. And 76% expect home prices to rise in their state over the next 12 months, nearly double the 41% who expected price increases last year.
Interstate investment interest continues rising
Reflecting growing interest in Brisbane, the survey found 44% of investors expect their next purchase will be interstate. This is up 3% over the 41% who planned to invest interstate in the 2021 poll. Queensland has benefited from an influx of interstate migrants from New South Wales and Victoria during the pandemic. If this continues, it will support Brisbane’s property market by pushing up rents and housing demand.
Factors driving Brisbane’s investor appeal
There are good reasons investors prefer Brisbane. Home prices there are still affordable compared to Sydney and Melbourne after huge run-ups. It offers high rental yields for investors. Queensland’s economy is strengthening, bringing jobs and interstate migrants. And Brisbane will host the 2032 Summer Olympics, promising massive infrastructure spending and development ahead. With strong fundamentals and growth outlook, it’s no mystery investors view Brisbane as Australia’s top real estate investment market.
The 2022 Property Investment Professionals of Australia investor survey provides powerful evidence that real estate investors see Brisbane as Australia’s hottest market right now, giving it the best prospects over the next several years.