Australia’s property investment hotspots revealed

South Brisbane, Queensland, is Australia’s top property investment hotspot, according to new research.

The trendy city district is a cultural oasis and home to the Gallery of Modern Art, the State Library and the Queensland Art Gallery.

The rents are among the highest in Australia, with yields topping 7%, according to website Your Investment Property.

Perth comes out top for investors overall – with districts of the city taking three of the top five placings.

The investment hotspot table in full is:

  • South Brisbane, Queensland
  • Morley, Perth, Western Australia
  • Gladstone, Queensland
  • Como, Perth, Western Australia
  • Perth Central Business District, Western Australia

Mortgage rises outstrip wages

Another report suggests homes are less affordable in Australia as monthly mortgage payments outstrip wage increases.

New research has looked at mortgage affordability – assessed as how much a homeowner needs to earn to service loan repayments.

The average mortgage cost AUS$450 a week in 2011, while household income was AUS$1,234 a week, according to PRDnationwide, who carried out the survey.

This was an increase of 38.5% in mortgage payments since 2006, when the average was AUS$325a week, while wages were up only 20.4% from AUS$1,025.

Overall, the firm calculated housing affordability had decreased by 4.8% across the country over the five-year survey period.

“Households have more dollars to spend but the cost of accommodation is growing quicker than increases to income,” said PRDnationwide research director Aaron Maskrey.

How the states compare

The affordability ratio varied between states:

  • In Queensland, the weekly mortgage repayment soared by 42.3% over the five years, while household income increased by 19.7%.
  • The Northern Territory has the highest weekly mortgage repayment, but also has the highest pay in Australia. Household income jumped AUS$493 over the five years
  • New South Wales showed the smallest change to average weekly income at 21.7%, while average mortgage repayments went up at the slowest rate of 31.4%
  • Home loans are more affordable than the national average in Victoria
  • South Australia showed the smallest change to the weekly household income of 17.6%
  • Tasmania workers earn the least at $948 per week, and over the five years, weekly household income increased by 17.6% or $142 per week.

Meanwhile, house prices have tipped a record high in Auckland, New Zealand, to an average NZ$589,521.

Local estate agents do not expect prices to slow as demand is outstripping supply.