Around three in four investors are seeing themselves invest in Perth or Brisbane over the next 12 months, according to a national survey by Momentum Wealth.
The survey ranked Perth as the most viable city for property investment, with 40% of investors pointing to the city as the best place to invest.
Brisbane also ranked higher, with around 32% of active investors eyeing to break into the Queensland capital over the next 12 months.
Affordability as top consideration
Affordability is driving the heightened interest of investors towards the two cities.
Of those who said Perth is the best location, close to half said the value offered by the city is the main reason, while one in five said Perth’s position in the housing cycle is the chief drawcard.
Around 29% of those who favoured Brisbane were attracted by the city’s current place in the housing cycle, while over a third cited its affordability.
Meanwhile, around one in five who listed Brisbane as their place to invest highlighted the announcement that the city will host the 2032 Olympic Games as a driver for their preference.
Perth likely to perform well
Momentum Wealth managing director Damian Collins said Perth in particular offers investors considerable value for money.
“The latest Housing Affordability Report by the Real Estate Institute of Australia confirms that in the December quarter of 2021, 26.2% of household income was needed to service a home loan in WA, compared to 37.3% in Victoria and 46.5% in New South Wales,” Mr Collins said.
The survey results are consistent with the findings of the recent NAB’s Residential Property Survey, where property professionals voted Perth as the leading state for housing market confidence in the next 12 months.
Mr Collins said strong economic conditions, combined with the continued tightening of stock on market and a projected uptick in demand in Perth, are expected to drive further growth in the year ahead.
“While stock levels remain well below long-term averages, the return of interstate and overseas migration into Perth will also underpin a significant uptick in demand for housing, so there is plenty of upside for investors who get into the market now,” he said.
Forecasts from the Real Estate Institute of Western Australia (REIWA) point to a 10% growth in the city’s dwelling values by the end of the year, driven in part by the 4% growth in the state’s domestic economy during the 2020-21 Financial Year.
The state government’s mid-year review in December 2021 forecast the economy to grow a further 3.5% in 2021-22, the fastest pace in eight years.
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Photo by @georgebakos on Unsplash
