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
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.”
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.
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.”
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.”
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.
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.
Coronavirus pandemic to slug Queensland’s property prices, industry figures say
For Queensland mortgage broker and property consultant Carolyn Walshe, it is not a matter of if, or when, the coronavirus will hit property prices, but by how much and for how long.
“You’d have to expect that they’re going to fall,” Ms Walshe said.
“The question is going to be just exactly how much — I think the smartest thing that people can do right now is just to hold back and wait and see what happens over the next few months.”
The latest figures show Queensland reached record median house prices for Brisbane, Noosa and other parts of the state in the last quarter of 2019.
Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella agreed that COVID-19 would put a dent in that.
“Inevitably we will see the property market impacted by the coronavirus — I think it would be incredibly naive to think otherwise,” Ms Mercorella said.
“We know that a large volume of people will lose their jobs during this time.
“We know that it will completely erode confidence and those things — security and confidence — are very much key to the property market.”
Last night, Prime Minister Scott Morrison included the property sector in the latest moves to limit social interaction.
“Real estate auctions and open house inspections, in particular open house inspections — that cannot continue,” Mr Morrison said.
He said that from midnight tonight they would not be allowed.
Lenders, investors cannot foresee what’s to come
Ms Walshe, who also advised clients through the global financial crisis — suggested the forced shutdowns of parts of the economy, the restrictions on travel and the massive queues for Centrelink all added to the uncertainty.
“The list of instructions that people have to live under is breathtaking, so until we see some endpoint to all of that, it’s going to be very, very difficult to see exactly where the other side is,” Ms Walshe said.
Ms Walshe said the fact the Federal Government had moved the budget from May to October showed neither it nor investors, could foresee what was to come with any certainty.
“I don’t think anyone can have a lot of confidence at the moment until we see things that are far less alarming,” Ms Walshe said.
“Therefore, less property sales will complete until we have some confidence returned to the market and people are back at whatever semblance of normal work is.”
She said banks would be reluctant to lend, as people’s ability to repay loans also looked uncertain.
“Lenders are now going to be seriously looking at [the] possibility of there being lower numbers of borrowers who are in occupations where their income can be absolutely guaranteed,” Ms Walshe said.
Ms Mercorella said while some investors would be reluctant, others might pounce.
“We will see some investors perhaps getting cold feet and making a decision to suspend that,” Ms Mercorella said.
“But similarly, we will see some prospective investors being quite bullish about it and actually looking at this as an opportunity and probably pouncing on what’s available to try and secure a property at a better price, at a lower price.”
Renters and landlords also to come under strain
Ms Mercorella said the REIQ’s immediate concern was tenants facing eviction for not being able to make their rent.
“Around 35 per cent of the Queensland population rents,” she said.
“The vast majority of that supply comes via the private investor, so given the predicted job losses, we are concerned about the impact that will have on a tenants ability to make their rent obligations.
“We don’t want to see renters being evicted on account of non-payment.”
She said the REIQ welcomed any support governments could give to tenants.
“Equally, what we need to be cognisant of is that the vast majority of that rental supply is coming from private investors — mum and dad investors — and they will have their own obligations at the other end to the bank.” Ms Mercorella said.
“So the challenge will be how we protect tenants in this in this environment, but also supporting owners who ultimately — if they don’t meet those obligations — will end up defaulting on mortgages, and ultimately having to sell those properties and losing those properties, which will mean that we all lose.”
Ms Mercorella said there was hope the property market would recover relatively quickly.
She said the Queensland market was robust and recovered well from the global financial crisis.
“Again, we bounced back from the GFC rather well, but I but I do expect that this will be far more severe than that,” she said.
“It will also depend on how long we’re in the situation for, so it really is crystal ball gazing at this stage.”
This article is republished from www.abc.net.au under a Creative Commons license. Read the original article.
Brisbane auction buyers still keen amid COVID-19 fears
As social-distancing measures ramp up in response to COVID-19, public auctions present an interesting challenge for real estate agents. Despite this, a bumper 94 auctions went ahead across Brisbane at the weekend, with a clearance rate of 39 per cent.
“Buyers were cautious walking in,” said Nick Penklis, director of Space Property Paddington, of his auction of the two-bedroom, one-bathroom house at 20 Atthow Avenue, Ashgrove.
“[People] kept their distance. But, having it in the backyard certainly helped a lot, because it can provide private space.”
About 30 people gathered for 15 minutes to watch the auction, with five registered bidders attempting to walk away with the keys. Bidding opened at $700,000, and quickly jumped to $750,000.
Things slowed somewhat after this as bids of $5000 and $10,000 edged the price higher. Eventually, the hammer was dropped, and the house was sold for $885,000.
Despite the need for social distancing and hand sanitiser, buyers were still keen, Mr Penklis said.
“The buyers were there to buy, not to view,” he said. “It wasn’t like ‘Oh, we’ll just see what happens’. That was a strong sign for our market. The only thing we can’t do is shake hands. But, there were smiles all around, within distance.”
The vendors have owned the house since 1997, and have used it as a family home and an investment property. Meanwhile, the buyers are looking to get a foothold in the area.
Auctions in Sydney and Melbourne are under a cloud from next weekend with premiers in those states flagging shutdowns of non-essential activities. No such plans for Queensland have yet been flagged, though it remains to be seen whether coronavirus may bite into Brisbane’s much smaller auction scene.
“We’re not expecting to see an impact on the values of homes but we will see the number of sales fall as people wait and see what is going to happen,” said Real Estate Institute of Australia president Adrian Kelly. “Estate agents are pretty good at adapting in these circumstances.”
Elsewhere, Kosma Comino, of LJ Hooker Sunnybank Hills, sold the five-bedroom, two-bathroom house at 10 Mansfield Place, Mansfield, in Brisbane’s south-east before auction. He said COVID-19 was having an impact on people’s willingness to sell in the short term, but several sellers were still keen to get things moving in the coming months.
“I’ve got a lot [of auction campaigns] launching after Easter, but I think a lot of the sellers are up in the air with what’s going on with the coronavirus,” he said. “At the moment, what we’re seeing is a lot of increase in buyer inquiry, I think there’s a lot of panic buying at the moment.”
On the other side of the city in Brisbane’s inner north, the four-bedroom, one-bathroom house on a spacious 810-square-metre block at 295 Days Road, Grange, sold under the hammer.
Just one party attended the auction, making one registered bidder and an audience of two people. Despite this, the house sold over reserve.
The single registered bidder was a developer, who opened with a strong offer and, after about 20 minutes of private negotiation, the hammer was dropped and the house was sold.
The vendors were two sisters who inherited the house after a death in the family. It was particularly process for them because the house had been in the family since the 1980s.
Selling agent Georgie Haug, of Belle Property Samford, said the successful result was thanks to an incredibly smooth process, as well as the vendor’s willingness to trust her advice.
“I sold the seller’s property in Ferny Grove a couple of years ago for a record,” she said. “So, just the trust and the communication. I took [this] job in a heartbeat because they had so much trust in me to do the right job and get the result. It was just a really beautiful process.”
Closer to the city, the two-bedroom, one-bathroom house at 16 Skinner Street, West End, sold in an incredibly fast auction. About 20 people gathered to watch as two registered bidders battled it out for under five minutes.
Bidding opened at $700,000 and moved quickly to $800,000. Bids continued in increments of $20,000 then $10,000 until the house was sold for $970,000.
Selling agent Keryn Osgerby, of Sold Property Group, said 33 groups inspected the property over the five-week campaign, with the vast majority of interest coming from families.
“It was overwhelmingly young families who wanted to be in the area of lifestyle reasons,” she said. “Second to that would be the schooling benefit, but most of it was all about the West End vibes and lifestyle.”
The buyers fit this bill exactly and will be moving in with their young family very soon. Meanwhile, the vendors live overseas and were using the property as an investment. They sold because of a change in circumstances.
This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.
Brisbane’s real estate sector holds steady: Herron Todd White
Brisbane’s residential real estate sector performs relatively steadily throughout its price cycle, avoiding dramatic dips, swings, peaks and fluctuations, according to the latest report from valuation firm Herron Todd White.
“Long-term property owners tend to do fairly well as long as their asset selection is on the mark,” the March report found.
“There is also a fairly typical range of buyer types. Our first home owners are motivated by affordability and getting the most bang for their buck. Their tick list will obviously be driven by location, but they’re also keen to find decent size allotments, potential for renovation, proximity to amenities and easy access to the CBD or a wellestablished lifestyle hub,” the report continued.
“While many of our first home buyers would no doubt like to buy within the five-kilometre radius, their price point usually means a balance between location and property type and quality. As such, there are those able to cope with a second-hand unit in a prime near-city position, while others will seek a newer home on a larger lot in a suburb a bit further out.”
“Both options could appeal to first home buyers at a similar price point Of note also is that first home buyers are becoming more prominent in our market.”
“The $15,000 state government first home buyer grant (which is limited to new property) and federal government deposit scheme are helping to boost their numbers. Add to that low interest rates as a motivation to getting first timers on the property ladder.”
Conversely, upgraders in Brisbane are looking to draw on increased value in their existing homes to secure better-quality accommodation in their location of choice.
“Their desired suburb will probably be dictated by their households needs. Young professional couples might look to move out of units and head towards a detached home with some renovation potential so there’s opportunity to build fast equity.”
Upgraders are mostly looking for the advantage of more space or larger yards and hopefully improved location compared to their first home – While upgraders will reside anywhere from outer suburbs through to near CBD depending on the budget, many find themselves in mid-range suburbs with easy access to the city.
“Family buyers could almost be considered an advanced subset of upgraders. These buyers are typically driven to certain properties by school catchments, proximity to public transport, parks, amenities and lifestyle amenities.”
“While many family buyers might want to look for renovation potential, there are plenty who are motivated to acquire something ready to live in so as not to tie up their weekends doing upgrade work.”
Brisbane downsizers and empty nesters are looking for low-maintenance homes with lock-and-leave potential to allow for trips out of town – a smaller detached dwelling of good quality and with a low maintenance yard, the report found.
“We are also seeing ever increasing numbers seeking accommodation in high-end units of minimum two (even three) bedrooms. They like the security while still having space for the kids and grandkids to stay. Downsizer locations vary from the CBD through to the bayside suburbs.”
Downsizers are also drawn to large apartments in suburban nodes within close proximity of shopping centres, amenities and hospitals.
The final buyer group highlighted in the report is the business professional – These buyers want to be close to the CBD or suburban nodes so their commute is short.
“Again, low maintenance is a priority as is public transport and lifestyle facilities. It’s suspected that these buyer numbers may well increase from the interstate migrant cohort coming to Brisbane chasing a better lifestyle than in Sydney or Melbourne,” the report found.
“The above list is, of course, not exhaustive. We are seeing a societal demographic shift with the rise of single-person households, multi-generational homes, single-parent families and share ownership among friends.”
“It’s envisaged that these varying household makeups will spur innovative and thoughtful design changes that will become more common over the next few years,” the report concluded.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
- Property Management5 years ago
7 Common GST Mistakes On Property
- Residential3 years ago
Ipswich Proves Frontier In Affordable Housing
- Infrastructure2 years ago
Decision on horizon for key marina section of huge North Harbour development at Burpengary
- Market Place2 years ago
How to make $1 million ‘flipping’ houses
- Developments2 years ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Market Place2 years ago
Seaside suburbs the star performers of southeast Queensland property market
- Developments3 years ago
Caboolture West could be Australia’s next major regional centre
- Infrastructure4 years ago
Ikea looking for 250 staff to fill roles at new North Lakes store