Sydney offering the least for investors, Brisbane offering the most

Sydney was tied with Canberra and Hobart, while Darwin placed dead last, with no-one believing it was worth an investor’s time and money.

Meanwhile, 46 per cent of respondents said Brisbane was worth investing into, coming in first for the second year in a row.

“Sydney’s strong price growth over the past five years has resulted in its property investment metrics no longer adding up for sophisticated investors,” said PIPA chairman Peter Koulizos.

“Its sky-high property prices means that rental yields are constrained and smart investors aren’t prepared to make up the difference in cash flow from their back pockets.”

The price disparity between Brisbane and Sydney was described by Mr Koulizos as a reason why it had the highest investor sentiment, and also explained an increase of interstate migration to Queensland.

“When the numbers are literally two for the price of one, it’s no surprise that owner-occupiers and first home buyers are opting to head North to South-East Queensland to take advantage of its more affordable property prices,” he said.

Melbourne came in second again at 19.23 per cent down from last year’s 29 per cent, while Perth came in at 15.38 per cent, which Mr Koulizos said has a market that contain sizeable risk.

“Perth is back on the radar after a number of years of poor market conditions, but its market is still uneven so investors must undertake thorough research before buying into that market in my opinion.”

These statistics correlate with Smart Property Investment's recent Sentiment Survey results, which also saw Queensland as the suburb offering the best results for the year, while New South Wales was also included in the bottom four states.