Property prices in Sydney have grown so exorbitant that Brisbane house prices have now reached a “critical” ratio of two to one with the major city, according to Property Club.
Troy Gunasekera, national spokesperson for the president of Property Club, says this ratio means prospective buyers can now buy two houses in Brisbane for the same price as one property in Sydney.
“Currently, the median house price in Brisbane is around $500,000 while in Sydney, it is around $1 million,” Mr Gunasekera said.
“When you buy two houses in Brisbane for the same price of one in Sydney, this ratio of two to one is generally a key tipping point that leads to an upswing in the Brisbane property market as investors from Sydney flood into Brisbane.”
Mr Gunasekera, who described the situation as “critical”, said his personal experience in property investment indicated that the Brisbane property market surged when the Sydney market peaked, “which is currently beginning to happen”.
“This happened back in 2003 when the Sydney market peaked and it was followed by a 30 per cent jump in Brisbane property prices,” he said.
“History is repeating itself with Property Club now recording growing activity by our members in Sydney now deciding to buy well-located properties in Brisbane because they believe this prime real estate market is undervalued.”
Mr Gunasekera said Property Club expected investor activity in the Brisbane market to surge during the next financial year, driven by competitive property prices and improving conditions in the Queensland economy.
“Our research department has identified several locations in Brisbane that are primed for above 10 per cent capital growth in Brisbane over the coming year,” he said.
“Anyone considering investing in the Brisbane property market should focus on pockets of high demand and undersupply. Unfortunately, many external investors are focusing on the inner city area where there is now a major oversupply of apartments.”