Brisbane The Favoured City For Interstate Investors: Survey

Most Australian investors believe Brisbane is a more affordable alternative to Sydney and Melbourne, according to a new survey by Property Investment Professionals of Australia (PIPA).

Chair Ben Kingsley said investors were increasingly looking outside the two largest capital cities for assets.

"Investors are seeing Melbourne and Sydney performing very well and they're looking for alternative markets that they think they can get in before the market starts to move," Mr Kingsley told wire service AAP.

"Sydney's market has started to slow and Melbourne is approaching the peak of the cycle.""Probably over the last six months there has been some speculation in the Sydney market, and the Melbourne market is enjoying a good Spring but I suspect that will slow down into 2016," Mr Kingsley said.

Of the investors surveyed by PIPA, 58 per cent identified Brisbane as the capital city offering the best investment prospects, well ahead of the 17 per cent that chose Melbourne.

Just 11 per cent named Sydney, while six per cent chose Perth and five per cent selected Adelaide.

About 20 per cent of investors said they had put their investment plans on hold because of concerns about a property bubble.

Tighter lending conditions were the key worry for investors, as regulators sought to slow the growth of investor lending.

Price corrections, the removal of negative gearing, long periods of vacancy and oversupply of property are concerns.