Results from the annual member survey conducted by Property Investment Professionals of Australia (PIPA) have been released and there are few surprises for those in the know. For the second year running Brisbane was named as the capital city which offered the best investment prospects for the year, according to 46% of survey respondents.

While the survey only takes into account the view of PIPA members, the results are significant as the align with market data and trends which have been previously identified. PIPA Chairman Peter Koulizos reiterated this by pointing to year-on-year trends showing a drastic slowdown in the Sydney property market.

“Sydney’s strong price growth over the past five years has resulted in its property investment metrics no longer adding up for sophisticated investors.”

“It’s (Sydney’s) sky-high property prices means that rental yields are constrained and smart investors aren’t prepared to make up the difference in cash flow from their back pockets.”

“When the numbers are literally two for the price of one, it’s no surprise that owner-occupiers and first homebuyers are opting to head north to southeast Queensland to take advantage of its more affordable property prices,” he said.

The annual member survey also found that the APRA restrictions which came into effect in 2017 had the desired outcome, and reduced the number of speculative investors. However these impacts were seen mostly in Sydney.

Mr Koulizos went on to say the government and industry regulators must address the need for comprehensive regulation of property investment advice to reduce speculation in the market, and improve outcomes for those most at risk.

“Introducing a minimum standard of education or qualification for those providing property investment advice would ensure that investors can receive the same level of appropriate guidance provided to anyone investing in other asset classes,”

“A regulated property investment advice sector would remove unscrupulous operators from the marketplace and protect consumers from fly-by-night spruikers whose only interest is their own.”

By the numbers: 2018 PIPA Member Survey Results

Which state capital do you believe offers the best property investment prospects for 2018?