Australian Property News

Brisbane offers more development opportunities

Posted on Tuesday, July 27 2010 at 10:30 AM

Development opportunities seem to be more plentiful in Brisbane at the moment than in other capital cities, observes Ed Nixon of Trilogy Investment Property Funding.

He says the market is a bit slower in Queensland’s capital so buyers are able to negotiate decent terms to buy bigger blocks that they can redevelop.

In other capitals, like Melbourne and Sydney, he says the market is too strong for buyers to be able to negotiate favourable terms.

While blocks ripe for redevelopment might be available in those cities, he says investors are likely to pay a premium.

“You’ve got to pay a price under the hammer, everything goes to auction,” says Nixon. “But in Brisbane you’re buying by private treaty so you can negotiate with the vendor.

“For instance, if you need three months to do due diligence you can delay settlement because the market’s not hot.”