Is Brisbane or Perth a better city to invest in?
With both cities seeing massive growth over the past year, there are pros and cons to each location.
Brisbane and Perth have both been subject to property booms over the last few years, with investors across Australia rushing to cash in on steep price gains. But which city offers a better deal for property investors?
Brisbane
According to Melinda Jennison, president of the Real Estate Buyers Agents Association of Australia (REBAA) and a Brisbane local, the Queensland capital still has several years of growth left in its tank.
Despite rapid price increases over the past year – including overtaking Melbourne as Australia’s second-most expensive city – ongoing supply shortages are expected to continue fuelling demand for Brisbane homes in the coming years.
“The Brisbane market remains robust with strong underlying fundamentals,” said Jennison.
“Several drivers are likely to continue to maintain strong demand for Brisbane property in the foreseeable future, while the availability of listings remains well below long-term averages.”
With interstate and overseas immigration levels staying strong, interest in Queensland property is high, yet new listings remain 34 per cent below the five-year average.
The result? Ongoing upwards pressure on property prices.
“Brisbane’s median house price has increased by tens of thousands of dollars since the start of this year and our unit market is now the second most expensive of any capital city around the nation, with 13.7 per cent growth in the first six months of this year,” said Jennison.
With the Queensland government recently increasing the stamp duty concession threshold for first home buyers from $500,000 to $700,000, particular pressure will be on properties below the $700,000 price point.
Perth
For the past 12 months, Perth has been the golden child of Australian property.
Many suburbs saw growth of over 30 per cent, and properties in the most popular suburbs were snapped up in less than eight days – all indicators of a buying frenzy. But is the boom set to last?
“Perth has seen an uplift of 11.8 per cent in house values and 13.7 per cent in unit values in the first six months of 2024. However, there are early signs that demand may be waning as the growth rate has started to ease slightly,” said Jennison.
She noted that “asking rents have been moderating recently” as vacancy begins to ease, despite strong double-digit annual growth.
One of the most prominent concerns to arise from the Perth property market are reports that east coast investors are artificially inflating prices by overpaying on properties.
“Some commentators suggest that east coast investors have been driving up property values in Perth, making it increasingly difficult for local residents to afford homes in their own market,” said Jennison.
Nevertheless, the REBAA president stressed that Perth “remains a city with extremely tight supply”, as listing volumes continue to track well below the five-year average.
The summary
Perth
- Good for: Quick price gains, metro properties
- Bad for: Longevity
Brisbane:
More from this writer:
-
Holding on to the family home until you die? Watch out for CGT
-
Melbourne is now one of Australia’s cheapest capitals – here’s why
-
ACT: Sunset clause reforms ‘working as intended’
-
Should you buy a renovator property?
-
The 20 suburbs that Aussies never want to leave
-
5 high-growth Sydney suburbs for every budget
-
WA builder left client $132k out of pocket