Australian Property News

Capital growth pushes Queensland investors to snap up property

Posted on Thursday, February 10 2011 at 2:47 PM

The potential for future capital growth is the number one incentive for Queensland property investors, according to the Real Estate Institute of Queensland (REIQ).

The institute conducted buyer and seller research last year and found 74 per cent of investors were buying property for capital gains purposes.

The next most common reasons were to fund retirement, for negative gearing purposes, as a means of deriving an income stream, or because they believed it offered a better long-term return than shares or super.

"While Queensland has had a very tough start to 2011, it's heartening that many investors recognise the strength of our property market and the opportunities that remain for growth over the long-term," REIQ managing director Dan Molloy says.

REIQ says 13 per cent of buyers purchased property last year for investment purposes. This is vastly different to 2003, when the proportion of investors was 40 per cent.

"Investors have most stayed on the sidelines over the past 18 months, but there are tentative signs they’re re-entering the market," Molloy says.

"With stable rents, increasing demand and less pressure on property prices, there are plenty of opportunities currently available for investors to enter the market."