Sydney's unaffordability driving investors to Brisbane, says local property group Mosaic

Sydney's unaffordability driving investors to Brisbane, says local property group Mosaic
Sydney's unaffordability driving investors to Brisbane, says local property group Mosaic

Investors priced out of the Sydney market are turning to Brisbane developments that offer long-term capital growth and consistently attractive yield, according to a property group based there which has seen inquiries from Sydney climb up in the past year.

Mosaic Property Group is a Brisbane-based boutique property group, with 14 inner-city residential projects currently in development.

During the past 6-12 months, the group’s Sydney and Melbourne sales inquiries have significantly increased.

In addition, there was a fall of 1.6 percent in Sydney’s Residential Property Price Index (RPPI) for the December quarter 2015, according to the ABS.

Mosaic managing director Brook Monahan said while the investor exodus from Sydney to Brisbane was not new, it was gathering further pace.

“Sydney investors can spend $500,000 in Brisbane on a spacious two-bedroom apartment with quality finishes in a new boutique development within 10km of the CBD, or they can spend double that amount on a smaller, older unit in their hometown," said Monahan.

“They can see that with investment into a high quality development in Brisbane, they’re buying into a market that is not only offering good rental yields, but also has strong long-term capital growth potential in the right projects.

“Across Sydney we’ve seen established housing and attached dwellings pricing fall 2.1 percent and 0.8 percent respectfully."

Monahan added that the trend was not just about investors chasing affordability, but also quality. 

Tags: 
Sydney Residential Development

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