Is Brisbane the Rocky Balboa of property?
Remember Rocky? The classic underdog story. The boxer that nobody said could win, that eventually went toe to toe with the best. The 1976 film was an underdog itself, and went on to win Best Picture at the Oscars against some stiff competition.
It's one of the reasons everybody loves to play the underdog, even when they aren't. But when it comes to the property investment market, we really do think Brisbane is coming through with a Rocky-esque narrative, and is ready to take on the big guns. Let's take a look at why.
We're going against the grain
In a November 19 media release from the Real Estate Institute of Queensland, it was noted that in the September quarter of 2015, Brisbane real estate prices reached a level that had not been broached in five years, with the median house price pushing through to $615,000.
This comes at a time when the rest of the Australian market is slowing down. CoreLogic RP Data's figures for October 2015 have shown that Sydney, Melbourne, Darwin, Hobart and Canberra all saw values drop over the previous month. Brisbane, meanwhile, continued to punch above its weight.
Despite suggestions that the national property market (including ours) would fall with the other east-coast powerhouses, we're beating the odds and outperforming the best. That's Rocky-like behaviour if ever we saw it!
The start of something great
While the quality of the subsequent Rocky films (all the way through to Rocky Balboa in 2006) has been debatable, they saw the ongoing rise and fall of Rocky - a pattern not unlike the property market. In Rocky II, Balboa goes the full distance and defeats Apollo Creed, some time after initially emerging on the scene.
A city with strong capital gains could be ideal for wealth creation
This could mirror Brisbane's growth in the next few years. A BIS Shrapnel report indicates that our city is going to experience the best value growth of any Australian capital in the three years to 2018 - a real champion.
Of course, the metaphor isn't perfect. For example, Rocky consistently takes punches from both boxers and life, and falls before getting back up. As the REIQ notes, though, Brisbane's growth has been remarkably consistent.
It's a great sign for property investors. A city with strong capital gains could be ideal for wealth creation in the long term, allowing you to build equity and develop a knockout property portfolio.