Property investors across the country are increasingly turning to the Queensland capital and believe the city represents the best investment prospects in the year ahead.
The Smart Property Investment/PIPA Property Investor Sentiment Survey revealed that over half of all survey respondents (56 per cent) believe Brisbane offers the best investment prospects – an increase of eight per cent from the beginning of the year.
In second place, but significantly further behind, was Sydney with 13 per cent, followed by Melbourne (11 per cent) and Perth (nine per cent).
The least popular investment option was Canberra, with only 0.5 per cent of investors selecting it as the city which offers the best investment prospects.
Queensland was also highlighted as investors’ preferred state overall, with 22 per cent of investors nominating the state as the location for their next property purchase. This was followed by NSW (20.1 per cent), Victoria (15.9 per cent), Western Australia (11.9 per cent), Tasmania (7.2 per cent), the NT (6.4 per cent) and the ACT (6.6 per cent).
Metropolitan markets continue to dominate investors preferences, with 65.2 per cent saying these locations are ‘the most appealing place to buy right now’. Regional markets accounted for 25.4 per cent of preferences, followed by coastal locations at 8.4 per cent.
Mining towns were the least popular alternative, with only 1.0 per cent selecting this option.
Despite property’s long-term capital growth prospects, PIPA chair Ben Kingsley said it was essential property investors carried out good due diligence on any property purchase to ensure they are making a sound investment for both the short and long term.
“In a hot property market it’s especially important to take a thorough approach to research to ensure you’re paying the right price. I’d also urge all investors to be cautious of any property spruikers who are particularly active in the current market and seek out qualified property investment advice.”
The Smart Property Investment/PIPA Property Investor Sentiment Survey surveyed 627 respondents over August and September 2014.