Norman Park, near the city, saw its median price climb by 21 per cent to $1,002,500 from $830,000 in a suburb which used to count former prime minister Kevin Rudd as a resident.
Ashgrove, another inner-city suburb, saw its mid-point house price rise by 17 per cent to $1,125,000 from $961,000.
Mr Warren said Ashgrove was an example of an inner-city suburb that appealed to professionals with children.
‘With a cosy neighbourhood feel, while only being four kilometres north-west of the city, Ashgrove is a convenient suburb for established professionals and families who want a little room to move without having to move too far away from the city centre,’ he said.
Metropole is also recommending other upmarket, inner-city suburbs including New Farm, Teneriffe, Ascot, Highgate Hill.
For those who can’t afford a million dollar house, Mr Sutton recommended other suburbs close to the city, including Stafford, Stafford Heights and Chermside in the north and Holland Park, Tarragindi and Cannon Hill on the south side.
Stafford Heights was cited as an example of an up-and-coming suburb with a more affordable median price of $652,000.
‘Just over the hill from big brother Stafford, this suburb has started to hit it off with families and investors alike,’ Mr Warren said.
‘With a number of retirees moving on and government housing hitting the open market, professional couples and families started to take over and put some money into the area, spending up big on their homes and transforming the neighbourhood to a more desirable one.’
Mr Warren said buying in areas near the city was a better investment than a distant outer suburb without the lifestyle amenities.
‘I don’t believe in hot spots or investing in an area just because it is expected to be the “next best thing”,’ he said.
‘Hot spots tend to become next year’s “not-spots” and I’m a long-term investor, meaning I take educated risks based on evidence and fundamentals, I don’t gamble.’
For that reason, Mr Warren said established, inner-city suburbs were ‘strong and stable suburbs’ and had ‘shown consistent historical growth and also have the right demographics to suggest future long-term growth’.
Australia’s major banks have released predictions showing a surge in capital city house prices in 2021 and 2022 as a result of record-low interest rates.
House values in March hit record highs in 61 of 88 sub markets in March, with median prices surging at the fastest pace since October 1988, CoreLogic revealed.
The boom is set to continue with three of Australia’s big four banks offering fixed mortgage rates of less than 2 per cent, with the Reserve Bank indicating it would leave the cash rate at a record low of 0.1 per cent until 2024.