These are the 10 up-and-coming Brisbane suburbs tipped to pay dividends for property investors in 2020.
THEY are called the up-and-comers; suburbs that buyers may have turned their noses up at five years ago, but which now have the potential to boom.
Brisbane’s housing market is ripe for investment as cheap money, buyer confidence and a lack of supply drive demand for property.
Industry experts are saying now is the time to buy, so using their tips, The Courier-Mail has compiled a list of the 10 best suburbs in which to buy property in 2020.
The results are based on criteria such as infrastructure, public transport, dining precincts, buyer demand, school catchments, neighbouring suburbs, capital growth and affordability.
And so as not to ignite a turf war, the chosen Brisbane suburbs are a mix of north and south locations.
1. BRIDGEMAN DOWNS
Distance from CBD: 13km
Median house price: $785,000
Number of house sales in past 12 mths: 137
This under-the-radar suburb was once only considered for prestige, rural residential properties, but is evolving into a solid investor option, according to ASPIRE Property Advisor Network.
“Increasing rents, falling vacancies, a rising population and affordable property options
are the gold standard when it comes to selecting promising investment locations and
Bridgeman Downs ticks all those boxes,” ASPIRE managing director Richard Crabb said.
“Most long-term Brisbane residents probably wouldn’t think of Bridgeman Downs as
an investor enclave, because it is so tightly held at approximately 85 per cent or more
owner-occupied, but this is exactly why we have pegged it as a great investment
opportunity.”
Latest figures from SQM Research, a data company, show that the rental vacancy rate in Bridgeman Downs tightened from 4.5 per cent in November 2016 to 3.2 per cent in November 2019.
“A combination of rising rents and tightening vacancies is a key indicator of
investment income growth potential,” Mr Crabb said.
He said the suburb’s population had grown about 13 per cent over the past five years.
2. CARINA HEIGHTS
Distance from CBD: 8km
Median house price: $667,500
Number of house sales in past 12 mths: 60
Carina Heights set some records last year at the entry level price range, which has pushed
the average house price higher, to $667,500, according to Realestate.com.au — not bad for a suburb that once struggled to crack an average of $600,000.
“It’s the first-home buyers, the investors and, interestingly, the upsizers who have been attracted to this little pocket in the south,” independent buyer’s agent Wendy Russell said.
“Knock-downs and rebuilds are on the minds of home buyers who see value in Carina Heights now that an average house in neighbouring Camp Hill will set you back a whopping $220,000 more, at an average of price of $910,000.”
Ms Russell said she believed Carina Heights would continue to see the knock-on effects of being the next suburb over from blue-chip suburbs of Camp Hill and Norman Park.
3. EVERTON PARK
Distance from CBD: 9km
Median house price: $605,000
Number of sales: 110
If you haven’t checked out the newly opened ‘foodie laneway’ — Everton Plaza’s Park Lane, you’re missing out.
Described as the foodie epicentre for northsiders, Everton Park has hit the mark when it comes to attracting those who enjoy the café/foodie lifestyle, but don’t want to head into
the city to get it.
Ms Russell said lifestyle suburbs attracted home buyers and renters.
“Keep an eye on this little northside suburb because at an average house price of $605,000, it will undoubtedly attract the attention of investors and first-home buyers in 2020,” she said.
4. FERNY GROVE
Distance from CBD: 13km
Median house price: $620,000
Number of sales: 60
Ferny Grove has experienced a 23 per cent rise in views per home listing on Realestate.com.au, a property listings website, over the past quarter as buyers start to realise its potential.
Realestate.com.au chief economist Nerida Conisbee said the suburb was well catered for when it came to schools and parkland.
“It also has a train station, which is popular with buyers,” Ms Conisbee said.
“With a median of $620,000 it is a bit more affordable and is a price point that is appealing to investors.”
5. KEPERRA
Distance from CBD: 10km
Median house price: $550,000
Number of sales: 81
Keep following the train line northwest and buyers with a budget of $600,000 or less will find Keperra.
Ms Russell said the flow-on effect from the suburb’s neighbour, Mitchelton, should guarantee property prices in Keperra rise this year.
“Just 10km from the CBD and with the train at your doorstep, the suburb is certainly an affordable option for first-home buyers looking to enter the market,” she said.
6. LOGANHOLME
Distance from CBD: 29km
Median house price: $395,000
Number of sales: 95
In Greater Brisbane the suburb of Loganholme has experienced strong growth in its median house price in recent months, according to Real Estate Institute of Queensland (REIQ) southern Brisbane zone chair Rebecca Herbst.
“The attraction of Loganholme is its easy accessibility to the M1, whether you work in Brisbane’s CBD, or are heading to the Gold Coast on the weekend,” Ms Herbst said.
“Lifestyle is easy, the Logan Hyperdome is close by and the houses are affordable. It is easy to pick up a nice home for between $350,000 and $450,000.”
Other suburbs in Logan City that have experienced above average price growth and have further capital growth potential include Crestmead and Hillcrest.
“In Crestmead, affordability is the key,” Ms Herbst said. “Where else can you pick up a three-bedroom brick home for $250,000, only 30 minutes and 30km from the Brisbane CBD?”
Agent comparison site OpenAgent found Logan had some of the highest rental yields for houses, with Logan Central at 6.49 per cent.
Damian Piotto of Ray White Marsden said Logan was ideal for investors, particularly those from interstate.
“Entry-level housing is always appealing, especially to interstate investors when they compare local house prices — NSW in particular — and see significant value long-term,” Mr Piotto said.
“Rental returns are always going to be strong with the area located right in the middle of Brisbane and the Gold Coast, great public and private schooling, and the blue-collar industry within a 10 minute drive of these areas.”
7. MANSFIELD
Distance from CBD: 10km
Median house price: $685,000
Number of sales: 112
School catchments are all the rage in Brisbane and one of the most sought-after includes Mansfield.
Ranking number 2 in the 2019 Better Education Top 100 Public High Schools in
Brisbane, with a state overall score of 99, the Mansfield State High School catchment has become a hot spot for families.
Property Club president Kevin Young said homes in good school catchments could command an extra 10 per cent weekly rent, compared with suburbs outside the catchment area.
“The focus on property buyers moving forward is to identify new investment in schools that will boost demand for homes in the local area,” Mr Young said.
“With the start of a new school year, it is timely that property buyers in Queensland start to target areas where government is going to invest significant amounts of money in new educational facilities, which will boost the future demand for housing in these areas.”
8. OXLEY
Distance from CBD: 11km
Median house price: $572,500
Number of sales: 10
Let’s not forget Brisbane’s southwest, where one suburb to watch is Oxley.
A train ride from Oxley Station to Brisbane Central takes about 27 minutes and with an average house price of $572,500 it should be on the watch list for first-home buyers and investors.
“With neighbouring house prices up to $360,000 more (Corinda, $787,000, Sherwood, $932,500 and Graceville, $912,000), Oxley has the recipe for growth as an outlying
suburb on the train line with an affordable entry price for homebuyers,” Ms Russell said.
9. STAFFORD HEIGHTS
Distance from CBD: 8km
Median house price: $611,000
Number of sales: 115
Stafford Heights popped up on the radar of buyers in 2019 because of its affordability and accessibility.
“With an average house price of $611,000 it’s hard to pass up this suburb as an alternative to the more expensive neighbouring areas of Kedron and Gordon Park that had their day when the M6 Tunnel opened,” Ms Russell said.
She said the suburb’s proximity to Prince Charles Hospital and Westfield Chermside Shopping Centre made it appealing, along with the fact it was flood-prone.
“Stafford Heights could very well be in for continued growth in 2020 with so many ticks against it’s name — affordable, accessible and it doesn’t flood,” Ms Russell said.
Russell Duplock and Larissa Lawrence recently bought an investment property in the suburb through Ms Russell.
“We liked the general feel of Stafford Heights,” Mr Duplock said.
“There are a lot of young families in the area and a lot of property renovations happening too.”
Mr Duplock said the property was in a good school catchment and close to shops and restaurants, which he hoped would support capital growth.
“I feel Stafford Heights in the next couple of years is going to go well, considering it’s still affordable,” he said.
The couple also had no trouble leasing the property.
“We had four applications from the first open home and had it rented two days after, so plenty of interest,” Mr Duplock said.
10. WYNNUM
Distance from CBD: 14km
Median house price: $625,000
Number of sales: 204
The bayside suburb of Wynnum offers lifestyle, infrastructure and affordability.
InSynergy chief property investment advisor Richard Sheppard said investors should consider the middle and outer rings of Greater Brisbane for houses, because the boom had largely started in the inner-ring housing suburbs and was rippling its way out.
Mr Sheppard said Wynnum, and the neighbouring suburbs of Manly and Lota, had strong market fundamentals that would underpin property price performance in the years ahead.
“That’s because, not only are they in the middle to outer ring areas, they offer
lifestyle while also being close to new and expanding infrastructure like the airport
and port, as well as road upgrades that will improve access to the CBD,” he said.
This article is republished from www.news.com.au under a Creative Commons license. Read the original article.