Brisane

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<p>The Bank of Queensland chairman Roger Davis has indicated he remained wary about the Brisbane apartment market.</p>
<p>Speaking at the bank’s annual general meeting on Thursday, Davis said cooling markets on the east coast of Australia were being watched closely.</p>
<p>“BOQ takes some comfort from moderating east coast housing prices and risk conditions, especially in Sydney, and sees no evidence of any systemic weakness in its housing portfolio or substantive increases in its mortgage arrears,” Davis said.</p>
<p>“We do remain wary of conditions in the residential apartment market, especially in Brisbane, where the RBA is warning that this financial year is “crunch time” given the oversupply, low rental increases, tightening credit conditions and ongoing targeted macroprudential regulations,” Domain Media reported.</p>
<p>REIQ chief executive Antonia Mercorella said the bank’s warning to shareholders was fair, but said the medium to long term outlook was much more positive.</p>
<p>“We’ve been dealing with concerns about the oversupply for the past two years,” she said.</p>
<p>“There’s really no evidence at the moment there’s a great cause for alarm. From our perspective, it’s better to take a long term view of the issue."</p>
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Bank of Queensland remains wary of Brisbane apartment market 

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<p>Sydney's recent growth is polarising investors, according to property adviser Jacob Field at Ripehouse, which <span>supplies research and analysis tools for DIY investors</span>.</p>
<p>"It is e<span style="line-height: 1.3em;">ither encouraging current Sydney investors who have made recent capital growth to diversify into other markets or f</span><span style="line-height: 1.3em;">or those investors that have not yet entered the Sydney market, and now priced out, they are looking out into other markets.</span></p>
<p><span style="line-height: 1.3em;">Jacob Field told Property Observer some </span><span style="line-height: 1.3em;">80% of his clients were currently targeting <a href="https://www.ripehouse.com.au/blog" target="_blank">Brisbane</a>, which according to his metrics, was in the mid-recovery phase of cycle.</span></p>
<p><span style="line-height: 1.3em;">"With great upside," he said.</span></p>
<p>"We are seeing strong market growth signals and investor interest in the Logan LGA, the Wynnum area and the inner Northern Quadrant of Brisbane extending out to Nundah, Chermside area.</p>
<p><span style="line-height: 1.3em;">"Due diligence and using information and research to become local area experts in unfamiliar locations can help the investor have clarity, confidence in decision making and a higher likelihood of achieving the upside in their personal strategy."</span></p>
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<p><span>"Moving into Q2 2015 Brisbane is exhibiting a very strong and consistent recovery story - firmly placing it mid-phase, he said. </span></p>
<p><span>"The only indicator lagging slightly behind in the Brisbane market is the seasonally adjusted sales volume figure, which in isolation, would suggest Brisbane is transitioning from the trough to the recovery phase. </span></p>
<p><span>"However, Brisbane is now perhaps the strongest buy recommendation in the nation and should not be overlooked for growth, all the way through the recovery and growth phases of the cycle."</span></p>
<p><span>The South East region of Queensland is also exhibiting indications that it is firmly in the mid recovery phase of the cycle. </span></p>
<p><span>"South east is positioned in alignment with the investment story of Brisbane, however it to a small degree, further along in the recovery process (so the upside may be slightly lower)."</span></p>
<p><span style="line-height: 1.3em;">Earlier this year Jacob Field reported <a href="https://www.ripehouse.com.au/Q2_2015_QLD_region_by_region.pdf" target="_blank">Brisbane and the South East regions of Queensland</a> were firmly in the recovery stage.</span></p>
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<p><span>"We have seen some small incremental growth in these two markets to kick off 2015, expect this to escalate and start moving much faster as we progress throughout the year."</span></p>
<p><span>He says Ripehouse gauges market performance, as an aggregate, from only those suburbs that qualify as  “investment grade”. </span></p>
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