Perth and Brisbane top property investor wishlist, new report finds

Perth and Brisbane have emerged as the most attractive cities for property investment in 2024, according to a new report by leading property advisory firm Momentum Wealth.

The 2024 Property Sentiment Report, which surveyed national and international investors, revealed that affordability and growth potential are the key factors driving investor interest in these smaller capital cities.

Over two in five (42.2%) investors named Perth as the “best location” to purchase an investment property in 2024, followed by Brisbane (23.5%), Melbourne (10.3%), and Adelaide (10.2%).

Sydney, Australia’s most expensive city for residential property, remains out of favour, with just 9.6% of investors attracted to the Harbour City.

Hobart (1.9%), Canberra (1.7%), and Darwin (0.6%) were the least popular locations for property investment.

Damian Collins, Founder and Managing Director of Momentum Wealth, said, “Past gains are no guide for the future, but there are compelling reasons to believe that Perth and Brisbane will continue to record high levels of property price growth, and a leading driver of this is affordability.”

“Perth has a median dwelling value of $721,278, while the median for Brisbane is $827,822 according to CoreLogic. It makes both cities considerably more affordable than Sydney, where the median dwelling value is $1,145,931,” Mr Collins said.

The report also highlighted the significant interest Perth is attracting from investors located outside of Western Australia, with 26.29% of NSW-based investors and 23.87% of Victoria-based investors naming Perth as their preferred investment location.

“We know that Western Australia has a powerhouse economy, having achieved growth of 4.7% in 2023, with forecast growth of around 3% annually over the next four years,” Mr Collins said.

“This is creating extensive job opportunities, which is underpinning high levels of interstate and overseas migration. From an investors’ perspective, this will fuel further demand for housing in Perth, where the vacancy rate is already at a record low of 0.6%.”

With a tight supply of homes coming to market in Perth and homes selling, on average, in just eight days, Mr Collins advises investors to act fast and seek professional advice to identify investment-grade properties in sought-after suburbs that will deliver robust long-term capital growth and strong yields.

Brisbane’s role as host city for the 2032 Summer Olympic Games is also expected to support increased property values in the Queensland capital.