Soaring prices in Sydney and Melbourne are driving demand in the Brisbane property market, according to a leading real estate agency.
Steve Worrad, Queensland general manager of Raine & Horne, said Brisbane may be the next hot spot for property investors.
“The Brisbane capital is attracting yield-hungry investors, who are being priced out of Sydney and Melbourne, as it's still possible to buy properties for less than $180,000.
“This is starting to drive up values in some suburbs, a trend that I expect to continue in 2015, especially if the Reserve Bank decides to cut rates early in the year in reaction to last week's lower than expected economic growth numbers.”
A Raine & Horne real estate agent based in Northern Brisbane said enquiries have doubled in the area.
“Lower interest rates have driven up first home buyer and investor enquiry by as much 50% for entry-level properties priced between $300,000 and $350,000,” Gina Wells, principal of Raine & Horne Burpengary and Raine & Horne Morayfield said.
“First home buyers now represent about 30% of total buyer enquiries, compared with 10% twelve months ago, while investors also represent 30% of the market.”
Dennis Wey, co-principal of Raine & Horne Beenleigh in Southern Brisbane said he is certainly witnessing an increase in demand as a result of the prices in Sydney in Melbourne; however there is still plenty of room to get a good deal.
“That said, many interstate investors are extremely savvy and will simply move on to the next property if their offer is not accepted, which means vendors need to be realistic about their pricing.
“In Beenleigh, we still have a decent supply of stock at affordable prices, which means it's still very much a buyer's market.”