Buy Brisbane/Melbourne; avoid Perth/Darwin: survey

Posted on 11/01/2007  

11 January 2007: 

Brisbane and Melbourne shape as the places to buy investment property this year - and Perth, Darwin and Hobart are places to avoid, according to a new survey from Brisbane researcher Matusik Property Insights.

The findings, based on a survey of property investors, show Brisbane is by far the most favoured capital city to buy in 2007. Melbourne and to a lesser extent Sydney (which some believe will emerge from its slump this year) are also popular with some who intend to buy this year.

Within Queensland, the Brisbane inner city area is by far the most popular location to buy, although the Gold Coast/Tweed region also rates highly.

Investors clearly have got the message that the Western Australia and Northern Territory markets have passed their peak. The survey shows few investors want to buy there and many think this is the year to sell in Darwin and Perth. In addition, few investors are interested in buying in Hobart or Canberra.

Generally, analyst Michael Matusik suggests that 2007 will be a buyers market. He says: “This year should offer cashed-up investors, who go in hard, some good long-term opportunities.”

For those who agree with his assessment, the most favoured product is vacant residential land followed by houses. Apartments are much less in favour. “There was some conjecture about attached versus detached dwellings, with many of our respondents thinking that houses with land were better investments,” Matusik says.

But for those who want to buy apartments this year, Townsville in North Queensland is a highly favoured location.

The survey also shows that many people see 2007 as a year to wait and see. Close to 50% indicate they will adopt a holding pattern with their property assets this year.

ENDS

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