The annual property investor survey conducted by the Property Investment Professionals of Australia provides valuable insights into which Australian capital cities offer the best prospects for property investors. The 2022 survey results indicate that Brisbane has surged ahead to become the top choice, with 54% of investor votes compared to just 36% in 2020. This shift is driven by strong demand and expectations for future price growth in Brisbane. Meanwhile, the survey also found that overall investor confidence remains high, with 62% believing now is a good time to invest in residential property. As property investors eye Brisbane as offering the optimal combination of affordability, rental yields and capital growth potential, examining the underlying factors driving demand in the Queensland capital can illuminate why it is currently rated as the best state to invest in property.
Brisbane’s exceptional population and jobs growth make it highly attractive for property investors
Brisbane has experienced strong population growth in recent years thanks to a robust state economy and employment opportunities. Queensland has benefited from massive infrastructure projects and interstate migration from the southern capitals like Sydney and Melbourne where housing has become increasingly unaffordable. Brisbane’s population grew by over 75,000 people in 2021-22, well above long-term averages. This influx of new residents is fueling housing demand while vacancy rates remain extraordinarily tight below 1%. Underpinning the exceptional population growth is thriving jobs growth, with over 150,000 new jobs created in Queensland over the past year. As more people move to Brisbane for lifestyle and affordability reasons, finding well-located properties with good rental demand from tenants should deliver strong yields and capital returns for investors over the next few years.
Interstate investor interest reflects strong capital growth potential in Brisbane
The survey found 44% of investors expect their next property purchase will be interstate, underscoring the attraction of Brisbane for those based in other cities. With median house prices still below $700,000 and offering attractive gross rental yields over 4% in many suburbs, Brisbane presents an enticing option for Sydney and Melbourne buyers priced out of their local markets. The combination of affordability and liveability makes Brisbane a magnet for interstate migration. With high demand from owner-occupiers and tenants alike, Brisbane’s exceptional price growth is likely to continue outpacing other capitals. The survey showed 76% of investors predict further price rises in their state next year, indicating strong optimism around Brisbane’s market.
Factors like rental demand and development projects support ongoing growth in Brisbane
While exceptional population growth is boosting housing demand, the underlying strength of the Queensland economy and job market will sustain migration to Brisbane. Major infrastructure and development projects like the 2032 Olympic Games preparations, the Queens Wharf precinct and Cross River Rail are also attracting new residents. Meanwhile, the lifestyle appeal of Brisbane coupled with relative affordability compared to southern capitals will drive further interstate migrations. With demand outpacing supply, vacancies tight and rents rising, property investors can capitalize on Brisbane’s growth story by securing well-located rental properties. Established inner and middle ring suburbs within 10-25km of the CBD are likely to deliver the best returns from rising values and sustainable rental incomes over the next 5-10 years.
The Property Investment Professionals of Australia 2022 investor survey highlights that Brisbane has now emerged as the standout top city for property investors. Strong population growth, thriving jobs market and major projects underpin the exceptional demand and price growth which is drawing buyers from interstate. Factors like affordability, infrastructure development and liveability will continue driving migration to Queensland. For investors seeking high rental yields and capital growth, Brisbane presents an optimal environment to benefit from over the medium term.