Queenslanders snap up Brisbane investments - with an even split between unit and house purchases

New research indicates Brisbane property investors are the strongest buyers in their own backyard.

As investment activity returns to the city, PRDnationwide has found some 86% of recent property investors are Queenslanders.

The company's research director, Aaron Maskrey, says most of the property investors in the city came from inner-city suburbs, and they often chose to invest in the same suburbs.

At 7% New South Wales accounted for the second highest level of investors in the Brisbane market.

Only 1% of investor sales were to foreign property investors.

The majority of the investor spend occurred within the inner-city suburbs, with the CBD registering the most at $94.5 million.

This was followed by Newstead and New Farm, achieving $85.9 million and $42.3 million respectively.

The top three suburbs to receive the most investor spend remained the same from the previous year.

Investment inside the Brisbane CBD decreased by 17% from the previous year, while New Farm experienced a significant decline of 49%.

Newstead however, increased by 18% in total investment spend.

The PRD study found total investor sales in Brisbane had decreased from the previous year from 5,036, to 3,865, equating to a decrease of 23%.

However, it notes the final number of settled investor sales is yet to be determined for the six-month October 2011 period as a portion of sales have yet to settle.

It suggested many acquisitions from off-the-plan apartment developments will likely settle over the next three to 12 months, reducing the decreased sales percentage figure provided.

Although housing stock is higher priced than unit stock and typically provides a lower gross yield, when closely analysed it is determined that approximately 50% of investors have purchased units, and the other half bought houses.

The majority of investors who bought a free-standing home did so in the suburb of Forest Lake over the six-month period ending October 2011, registering 55 house sales.

This was followed by Wynnum (34), Coorparoo (33) and Bracken Ridge (32). When observing the previous year, Inala recorded the most house sales at 62, followed by Forest Lake (61) and Wynnum (48).

When observing the top 20 house suburbs, an overriding trend of affordability appears.

The majority of the top 20 suburbs are located in the middle to outer Brisbane, allowing for investors to capitalise on more affordable house prices, which in turn may lead to greater yields.