As you may already be aware, the property price growth in Brisbane has been relatively flat for the past 2-3 years. According to CoreLogic, Brisbane recorded a property price growth of only 2.9% up until September 2017. This figure however, includes all dwellings and there is still an oversupply of units and apartments especially in or close to the CBD.
Brisbane also recorded weak employment growth and a slower growth in population. However, this is predicted to change as more people move from the higher priced southern states of New South Wales and Victoria in an effort to find more affordable housing.
What Did The Market Look Like In 2017?
In Brisbane, the median price of houses was around $551,840 with an average weekly rent of $400. Units, on the other hand, averaged at $376,685 with a median weekly rent of $370. When you compare this to the southern states, you can understand why a lot of people are looking to relocate to Brisbane.
According to the Australian Residential Property Outlook (2017) by Ironfish, the interstate migration to Queensland is the highest compared to anywhere else in Australia. Apparently, according to SQM research, this expected migration is the highest it has been for the past 20+ years.
Add to this the more appealing climate and laid back lifestyle, it’s no wonder that many are opting to relocate to the sunshine state.
Which Suburbs Are The Most Popular For Property Investors?
According to Louis Christopher from SQM, the eastern suburbs of Brisbane are looking quite favourable as they have seen an increase of 16% over the past three years. But there are plenty of other favourable areas to consider. It’s recommended, when researching different areas, that you should look at suburbs which have a rental yield of at least 6%.
Here are some suburbs you should look into:
Leichhardt is a suburb of Ipswich which has seen a steady increase in property prices over the last 5 years.
- Population 3074
- Dwellings consist mainly of houses (98.8%)
- Nearly half of all properties are rentals (41.1%)
Burpengary is a northern suburb of Brisbane which registered a median home price increase of 11.8% in the past 12 months.
- Population is 12805
- Dwellings consist mainly of houses (91.1%) with 3.8% semi detached dwellings and only 1.7% units
- Of all dwellings in the suburb only 14.2% are rentals
Mount Warren Park
A leafy southern suburb of Brisbane in the Logan area, Mount Warren Park showed an increase of 3.42% in median house prices in the past year.
- Population is 5639
- Properties in the suburb consist mainly of houses (80.6%) followed by units (13.8%) and semi detached dwellings (5.3%)
- Only 21.1% of all properties are rentals
Springfield is a growth suburb south of Brisbane which has seen a huge increase in infrastructure over the past 10 years. It is considered a satellite centre and has all the amenities residents could possibly need without having to leave the area. The suburb is witnessing a steady growth in median property prices but only saw growth of 0.89% over the past 12 months.
- Population is 5730
- The majority of properties are houses (92.5%) with 6.3% semi detached dwellings
- 34.5% of all properties are rentals
Beachmere is a coastal suburb north of Brisbane in the popular Moreton Bay region. Properties in the area have seen a growth of 9.82% over the past 12 months.
- Population in the suburb is 3302
- Dwellings in the suburb consist mainly of houses (89.4%) with units at 7.4>#/span###
- Around 28.1% of all dwellings are rentals
What About Regional Queensland?
Regional areas in Queensland may be more favourable for property investors at present especially areas like the Gold Coast, Sunshine Coast and Townsville.
All these regions have seen good capital growth over the past 12 months. Suburbs to keep an eye on include Noosa Heads, Buddina and Forest Glen on the Sunshine Coast and Helensvale, Benowa and Coolangatta on the Gold Coast.
Whereas the Gold Coast and Sunshine Coast have more expensive median house prices ($605,000 & $580,000 respectively), median property prices in Townsville are averaging around $325,000. Townsville has seen a growth in infrastructure with a major port upgrade and services for the military and mining sectors.
Investors Should Still Be Wary Of Investing In Apartments In The Brisbane CBD
There is still an oversupply of apartments especially in the city centre and vacancy rates have risen over the past 12 months. There has also been a fall in unit prices over the past year however the market seems to be settling down now as construction approvals have fallen.
So if you’re still keen to invest in an apartment in Brisbane, do your research well and expect to see little capital gain in the near future.
In conclusion, although property prices have been fairly stagnant in Brisbane over the past 5-10 years, this is predicted to improve over the next 2-3 years. According to research done by QBE, properties could see a capital growth of around 7% by 2020.
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