Sydney, Brisbane, or Melbourne: Which has the better property market for investment?

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Keeping up with property markets

When it comes to investing in property, timing matters. A city that was a great place to buy ten years ago might not show such promising price growth now. It’s impossible to say which Australian city has the ‘best’ property market – not only because they’re always changing, but because it also depends on the individual investor and their financial goals.

 

The key piece of investment advice is to forget ideas about where you would rather live or holiday. Many property investors make decisions based on the places they are familiar with. But by stepping back and looking at the Australian property market as a whole, including which cities are ‘on the rise’, you could benefit from significant increases in equity in a short period of time.

 

Sydney

Sydney is Australia’s largest property market and has experienced a boom over the last ten years, largely due to population and job growth. The median house sale price is Sydney is now $1.14 million, making it the most expensive capital city to buy in. However a recent decrease in annual market growth – down 6.1% from last year – indicates that the market has entered its correction phase in the property market cycle.

Zooming into individual suburbs in Sydney, there is still potential for property price growth. Sydney’s inner and middle ring suburbs remain attractive for the city’s younger demographic of home buyers, with an average resident age of just 32 in Sydney’s CBD.

 

Brisbane

The property landscape in Brisbane is always changing – more now than ever before. Brisbane has an increasing population, which means newly built homes, investment in infrastructure, and job growth. The city’s property market is steadily gaining pace and over the last 12 months some properties in Brisbane have shown double digital capital growth.

Thanks to these promising figures, Brisbane is attracting the attention of property investors across Australia. But of course, a good investment depends on choosing the right suburb – some are showing an extremely healthy annual house price growth of 23% while others dwindle at 1.9%. The good news is that Brisbane properties are the most affordable compared to Sydney and Melbourne, even in inner-city and middle-ring suburbs.

 

Melbourne

The property market in Melbourne is currently a two-sided coin. While some areas are slowing in growth, others are enjoying significant increases in property value. The difference is largely dependent on location and price point. At the lower end of the market, house prices are holding firm and some areas are showing significant year-on-year increases. Lower cost homes in Melbourne have risen on average of 6% in value over the past year, and some suburbs in outer Melbourne have seen an annual house price growth of 19–23%.

Population growth is strong in Melbourne at 2.7% (compared to 1.8% for Sydney) so the demand for property is likely to remain high as more households move to the area.

 

Get property market insights

It’s important if you are thinking about investing in a property that you gain up-to-date insights and seek expert knowledge. The property market can change quickly and there are suburbs predicted to become high growth areas that are not widely known.

 

At Reventon, we analyse property markets constantly and understand the factors that indicate a market is about to experience a rise in house prices. To benefit from this, book an advice session with one of our experts. We will talk through your current financial situation, you investment goals and we’ll produce a comprehensive, personalised plan to suit your circumstances. It’s free and you won’t be obliged to take up any of our services.

 

Book your free consultation now


 

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