Property markets are cyclical in nature and the hotel market is no different. Picking the right time to enter – and indeed exit – the market is key to maximising return. With differing performance across Australia’s main hotel markets investors have several options to choose from when deciding where to invest but in recent times have shied away from markets such as Brisbane and Perth. However, with the leisure markets looking like they have peaked, Sydney and Melbourne being tightly held, is it the right time for investors to switch their focus?
The indicators for an improvement in the Queensland economy are falling into place. History tells us that when Sydney and Melbourne face housing affordability issues net migration to Queensland increases. Brisbane house prices as a percent of Sydney's are now at the same rate as they were in 2002 and net migration is on a similar growth trajectory. Population growth is a key driver of the economy and a strong indicator of future performance.