Right now, as an Australian Buyers Agent, one of the most common questions I’m getting from property investors is this:
Should I buy an investment property in Queensland?
Should I buy an investment property in Perth?
Of course, this is completely understandable.
Both Queensland real estate markets and Perth real estate markets are performing very well at the moment.
What’s more, Perth and Brisbane are the only two capital cities in Australia tipped to see housing values go up in 2024, so it makes sense that investors are asking this question to ensure they get the best bang for their buck.
So, where should you invest? Queensland property or Perth Property?
Well, while many are shouting the praises of Perth right now, I do still believe that Queensland is the better choice between the two if you’re looking to get the best returns on your investment property.
Hear me out – I’ll explain.
While this may surprise you, by the end of this article, you’ll have a much clearer understanding of why I believe this to be the case – and hopefully, this will help you to make the right Australian property investment decision to suit your investment goals.
Let’s start with an overview of the Perth property market
Right now, there’s a lot of hype around property in Perth. Investors are flocking to the West Coast by the thousands, and it’s easy to see why.
According to CoreLogic, in the 12 months to November, Perth has enjoyed the greatest increase in dwelling values around the country – a whopping 13.5%.
In comparison, Australia’s combined dwelling values only increased by 7%, meaning Perth rose by nearly double the national average.
As it stands in December 2023, Perth’s property market is now sitting at a record high.
At the same time, CoreLogic’s data also shows that rental prices in Perth have increased by 13.4%.
Again, the highest figure in the country, and over 5% higher than the national average. As for rental yield, that’s sitting at 4.6%, second only to Darwin.
It’s no wonder so many investors are looking to get a piece of this action.
So, how does the Queensland property market compare?
In the 12 months to October, Brisbane’s dwelling values have increased by 10.7%, and Regional QLD has experienced a growth rate surpassing the national average, reaching 7.2%.
Perth is the only location where property values have risen more than Brisbane during that period. Likewise, only Regional WA and SA have outperformed Regional QLD’s values.
When it comes to investing, rental prices in Brisbane have increased by 8.1% in the same period. While this is a few points shy of Perth, the rental yield in Brisbane is still sitting at a healthy 4.0% – with 4.6% in Regional QLD.
So, what does this tell us? Perth property vs Queensland property?
Well, to the untrained eye, it would appear that Perth is the obvious choice for property investors to spend up big, outperforming Queensland in every area. But, as is usually the case, there is more than meets the eye.
I’ll explain.
Why the booming investment trend might be over in Perth already
When it comes to buying an investment property in Queensland or Perth, the statistics above only give us part of the story. There are several other factors that you should also take into account when making your decision.
For example, consider that the Perth property market was quite stagnant for a long time, and then grew quite considerably over just a short period. It’s fair to say that even if it does continue to grow, it’s certainly not going to maintain its current rate of growth over the long term.
This means that while the rental yield is still better in Perth than in Brisbane, you’re unlikely to see any significant growth on your capital investment there over the medium-to-long term – and that’s where the real money is made.
As the saying goes in investing, the best time to buy was yesterday. In the case of Perth, it would appear that the best time to buy was 5-10 years ago.
Here’s why I believe Queensland is still the ideal choice for property investors
Queensland real estate, on the other hand, has been a consistent and steady investment performer for many years, and there are numerous reasons why it will continue to perform in the future.
As an East Coast state, Queensland is far more accessible to a much larger portion of the Australian population than Perth is, while still offering widespread affordability, better weather and a better quality of life overall.
We’ve already seen a strong migration pattern emerge as more people head north to escape the rising prices and mortgage stress of Sydney and Melbourne, and this only looks set to continue.
The announcement of the 2032 Brisbane Olympics has also seen a huge push for upgrading infrastructure in Queensland, leading to more jobs and an improved quality of life throughout the city and surrounding areas too.
So, with great rental yields, steady population growth and a bright future ahead of it, I firmly believe that Queensland is the top choice for investors looking for strong capital growth in Australia right now.
Keep in mind that what I have provided here is just general information
Just remember: while I endorse investing in Queensland property, it’s still about choosing THE RIGHT investment property that aligns with your goals.
That’s where having me as your Queensland Buyers Agent comes in.
If you’re looking to invest in real estate, expert advice from a local Buyer’s Agent like myself is exactly what you need to help you make your property decision with confidence.
Worth Property Investing can help you buy the right property today
My team and I are passionate about helping you make the right investments to achieve your financial goals and lifestyle aspirations.
Think of us as your property-buying partner, here to support you in making the ideal property decisions. As your trusted, licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing the best investment for you.
Thanks,
Simon Read
Your local Queensland Buyers Agent
