Brisbane house prices have now reached the critical ratio of 2 to 1 with Sydney according to Kevin Young, President of Property Club.
According to Mr Young the 2 to 1 ratio means that you can now buy on average of two houses in Brisbane for the same amount of money as buying one in Sydney.
“Currently, the median house price in Brisbane is around $500,000 while in Sydney it is around $1 million.
“When you can buy two houses in Brisbane for the same price of one in Sydney, this ratio of 2 to 1 is generally a key tipping point that leads to an upswing in the Brisbane property market as investors from Sydney flood into Brisbane.
“Having invested in the property market for nearly half a century, my experience is that the Brisbane property market begins to surge when Sydney peaks which is the currently beginning to happen.
“This happened back in 2003 when the Sydney market peaked and it was followed by a 30% jump in Brisbane property prices. This boom in Brisbane property prices back in 2003/2004 was predicted by the Property Club in 2002.
“History is now 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.
“Our research department has identified several locations in Brisbane that are primed for above 10% capital growth in Brisbane over the coming year.
“Property Club expects investor activity in the Brisbane market to surge during the next financial year driven by very competitive property prices and improving conditions in the Queensland economy.
“Anyone considering investing in the Brisbane property market should focus on pockets of high demand and under supply. Unfortunately, many external investors are focusing on the inner city area where there is now a major oversupply of apartments,” he said.
House price index (a)(b): Brisbane, Sydney and Melbourne, 2002–03 to 2015–16
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