Sydney investors turn towards Brisbane: Ripehouse
Sydney's recent growth is polarising investors, according to property adviser Jacob Field at Ripehouse, which supplies research and analysis tools for DIY investors.
"It is either encouraging current Sydney investors who have made recent capital growth to diversify into other markets or for those investors that have not yet entered the Sydney market, and now priced out, they are looking out into other markets.
Jacob Field told Property Observer some 80% of his clients were currently targeting Brisbane, which according to his metrics, was in the mid-recovery phase of cycle.
"With great upside," he said.
"We are seeing strong market growth signals and investor interest in the Logan LGA, the Wynnum area and the inner Northern Quadrant of Brisbane extending out to Nundah, Chermside area.
"Due diligence and using information and research to become local area experts in unfamiliar locations can help the investor have clarity, confidence in decision making and a higher likelihood of achieving the upside in their personal strategy."
"Moving into Q2 2015 Brisbane is exhibiting a very strong and consistent recovery story - firmly placing it mid-phase, he said.
"The only indicator lagging slightly behind in the Brisbane market is the seasonally adjusted sales volume figure, which in isolation, would suggest Brisbane is transitioning from the trough to the recovery phase.
"However, Brisbane is now perhaps the strongest buy recommendation in the nation and should not be overlooked for growth, all the way through the recovery and growth phases of the cycle."
The South East region of Queensland is also exhibiting indications that it is firmly in the mid recovery phase of the cycle.
"South east is positioned in alignment with the investment story of Brisbane, however it to a small degree, further along in the recovery process (so the upside may be slightly lower)."
Earlier this year Jacob Field reported Brisbane and the South East regions of Queensland were firmly in the recovery stage.
"We have seen some small incremental growth in these two markets to kick off 2015, expect this to escalate and start moving much faster as we progress throughout the year."
He says Ripehouse gauges market performance, as an aggregate, from only those suburbs that qualify as “investment grade”.