Property Investment in Australia’s Main Cities

Australia along with the UK and USA boomed at about the same time during the last property growth cycle with the situation three to five years ago a million miles from what it is today.  Gone are the days of the property frenzy where prices were escalating, buyers were panicking and investors were reaping substantial dividends.  Indeed, most people are aware that the property investment climate in Australia has been subdued of late – but that’s not to say that there’s no life left in Australian property.

Property investment in Australia’s main cities of Sydney, Perth, Melbourne, Brisbane and Adelaide is still steaming ahead as investors are well aware that there is still money to be made and that the property investment climate remains attractive.  We give you their insight into what’s hot in terms of residential and commercial property in Sydney, Perth, Melbourne, Brisbane and Adelaide right now.

Property in Sydney

Well located properties in Sydney are always going to be in demand…that’s the first thing to remember.  Next up is the fact that migration towards Sydney is increasing and affordability is growing in the city at the same time as prices that have been stale for some time are starting to show some signs of renewed life. 

Basically, there is value in the market right now that will likely remain for the next year to eighteen months - so investors need to move quickly if they want to buy into the growth trend.

Also of interest in Sydney according to Rose and Jones is the fact that at the current time there is demand for, but limited supply of properties above the AUD 2 million mark, meaning that the market in this range is well afloat and that it’s a great time to upgrade investment property. 

Alternative investment pods exist on the commercial side of things especially on the peripheries of the Central Business District where real estate is considered by many to be undervalued and where values are expected to increase significantly with the growth period projected to last for up to the next three years…investors interested in the commercial property market in Australia have about a year to eighteen months to get into this particular trend and the best buys for commercial and residential real estate will be within a four to five mile radius of the Central Business District and also the coast.

Property in Perth

Perth’s property market is being supported by strong buying power, limited supply across the board and the fact that prices haven’t moved much in recent months – therefore there is both demand and value in the market at the moment. 

For an investor looking at property in Perth, a long term approach has to be applied to both the residential and commercial market sectors however.  For residential look at tried and tested areas rather than emerging potentials and pay special attention to the property and the location, thinking about your target market for profit in the future and what they will demand.  For the commercial side of things remember that there is yield potential meaning that Perth’s commercial property market is excellent for those seeking growth in rental rates chargeable - but consider that capital growth is likely to remain slow for a good few years yet.

Property in Melbourne

Unlike Perth there are signs of capital growth in the commercial property market in Melbourne as well as the potential to achieve relatively high yields which means that this market sector is proving popular with investors currently.

On the residential side of things the higher an investor can go the less likely they are to be affected by mild economic changes according to the director of Michael Ramsay Property…but in order to profit, caution has to be applied to property investment choices.  Factors to consider include that in the AUD 1.5 million to AUD 5 million range demand is far outstripping supply and that it would be wise to make a move now on anything particularly attractive because current stagnation doesn’t mean that the market will not start to move unexpectedly.

Property in Brisbane

Brisbane is an interesting market – it has had a very soft landing and property prices have not been strongly adversely affected by the overall downward and stagnation trend across Australia.  Brisbane is a good market for buyers seeking current and continued demand in the residential market with the potential to achieve strengthening yields in the commercial market also in existence at the present time.

Experts at Property Searchers PTY Limited believe a buyer contemplating market entry should move sooner rather than later as prices in Brisbane are growing – even if they’re growing slowly!

Across the residential board there is demand, there is also demand for brand new stock although investors wanting the best in terms of capital appreciation and a strong audience should target the resale market in the AUD 350,000 to AUD 450,000 range.

Property in Adelaide

In Adelaide it’s easier to say what not to buy!  Avoid so called ‘lifestyle’ real estate as well as units close to the Central Business District and the seaside as these are overpriced, in over supply and currently of little short to medium term value to an investor.  Basically the fact that Adelaide still has a lot of affordable property in Australia is keeping the market buoyant.  Interest in properties for sale in the city is coming from across Australia and beyond and anything that’s close to the centre of Adelaide or in the upper echelons of the market is in demand.

Special Reports: Property News for Australia

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