Considering an investment into the Brisbane property market but don’t know where to start?
Brisbane’s property values remained resilient over the last year, especially given the economic impact of COVID-19, and are now forecast to perform strongly in 2021.
The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas are projected to deliver 6–10% capital growth in 2021 for the south-east Queensland property market.
Westpac Bank also recently updated its property forecasts, with Brisbane prices tipped to surge 20 percent between 2022 and 2023, meaning Brisbane is likely to be one of the best performing property markets over the next few years.
As an investor, if you manage to buy the right property in the right location, you could be primed to supercharge growth.
There is no such thing as a hotspot
But first things first.
I don’t believe in hotspots or investing in an area just because it is expected to be the “Next Best Thing”.
“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.
Instead, I like to approach this list of top Brisbane suburbs for 2021 in a way where I get the opportunity to highlight those strong and stable suburbs that have both shown consistent historical growth and also have the right demographics to suggest future long-term growth.
Neighborhood is now more important than ever
Let’s not forget that the ability to work, live and play all within 20 minutes’ reach is the new gold standard desirable lifestyle.
And this ‘ultimate goal’ is now more important than ever thanks to our new “Covid Normal” world.
If social distancing and the Covid-19 environment has taught us anything, it has taught us the importance of the neighbourhood we live in.
If you can leave your home and be within walking distance of, or a short trip to, a great shopping strip, your favourite coffee shop, amenities, the beach, a great park, the recently implemented coronavirus restrictions might seem a little more palatable than if you had none of that on your doorstep.
But the reality is, this concept is nothing new.
In fact, the rise of the 20-minute neighbourhood started long before Covid19.
You will find these are often in the gentrifying aspirational lifestyle suburbs of our capital cities and people will pay a premium to either own a property in these locations or rental property in these locations.
Many inner suburbs of Australia’s capital cities and parts of their middle suburbs already meet a 20-minute neighbourhood test.
However very few of the outer suburbs would do so.
Follow the demographics
According to leading demographer Bernard Salt, the coming of the coronavirus has changed the Australian workforce and not just by prompting adaptation to new technology like Zoom calls and triggering a work-from-home movement, but also by rigidly dividing the nation according to skill sets.
The Australian Bureau of Statistics classifies every job according to one of five skill levels with Skill Level 1 being the most skilled.
It is well recognised that the rich – such as people with a Skill Level I job – are getting richer, and at the other end of the spectrum, Skill Level 5 jobs requiring little or no previous work experience (like general sales assistant, kitchen hand) are experiencing no wages growth.
A Skill Level 1 job requires a bachelor’s degree or higher, or the equivalent of at least five years’ training.
People with these types of jobs will earn more income and be able to afford to pay more for their properties.
The pandemic cricket demand for skills in finance (accounting), risk management (solicitors), computer programming and many other skill levels one jobs.
However, the story for the balance of the workforce has been quite different.
So understanding where the skill level one worker lives in Brisbane is critical and be seen in the following graphic provided by Bernard Salt in The Australian.
Top 15 Brisbane suburbs for 2021
Whether you are looking for a higher-end purchase or a beginning investor, I think these are the Brisbane suburbs that are set to take advantage of the changing face of the city.
In addition, while growth is on the mind of every investor, importantly these locations could also be considered recession-resistant.
Remember we talked about the importance of neighbourhood above?
Each of these noteworthy suburbs are close to major employment hubs, they have bulletproof school catchments and immediate access to public transport and local infrastructure.
Here, they’re listed in order of the highest to lowest median property price, revealing data from Domain Group and Real Estate.com.au.
New Farm / Teneriffe
Total population: 12,534 & 5,341
Average age: 20-39
Median property price: $1,827,500 & $2,000,000
When they said property is as safe as houses, they were probably thinking about New Farm and Teneriffe.
This incredible inner-city suburb has all the ingredients for a bulletproof investment.
It has premium lifestyle precincts, high walkability, low commute times and great school catchments, all a stone’s throw from our biggest employment hub, the rapidly expanding CBD.
Total population: 5,787
Average age: 40-59
Median property price: $1,597,000
Ascot is right in the middle of Brisbane’s two largest (and rapidly expanding) employment hubs: the CBD and the airport precinct.
While apartments have taken a back seat due to nearby oversupply issues, houses continue to go from strength to strength.
Another suburb with an iconic café strip, strong school catchment and an easy train or ferry ride into the CBD.
Total population: 6,195
Average age: 20-39
Median property price: $1,272,500
With a quiet neighbourhood just a stone throw from West End, South Bank and closest to the City, Highgate Hill is probably one of the best suburbs in Brisbane.
It’s peaceful with good dining options and combined with recent and upcoming infrastructure developments such as new roads, transit, schools, hospitals and other major infrastructure projects, the area creates great opportunities for business and investors alike.
While the whole suburb is primed for growth, the streets which fall within the catchment area for Brisbane’s best school, and those with sweeping city views are in especially high demand.
Total population: 3,949
Average age: 40-59
Median property price: $1,162,500
Wilston already has a real community spirit with a very strong school catchment and café strip that locals flock too.
This suburb has really gentrified over the last few years with old workers cottages, replaced with bigger, modern contemporary homes.
Pros include a railway stop and a new Northern Busway, it is primed to take advantage of the Brisbane Airport expansion.
Total population: 13,046
Average age: 40-59
Median property price: $1,105,000
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.
Total population: 8,381
Average age: 20-39
Median property price: $1,000,000
Taringa is a great suburb – lovely and green, close to the city, good transport with a train station and buses plus you get all the benefits of living near a university (sporting fields, cinemas, cafes and restaurants).
The suburb is multi-generational but perfectly suits families, young working professionals and university students due to the nearby iconic schools, public transport options and entertainment precincts.
Total population: 10,793
Average age: 40-59
Median property price: $863,000
Tarragindi is a small suburb of just 8 streets and a strong family feel and excellent infrastructure.
The short commute to CBD via Pacific Motorway or access via bus at the Holland Park Busway is a huge bonus for those rightfully keeping ‘neighbourhood’ at the forefront of their minds.
Total population: 8,097
Average age: 20-39
Median property price: $826,000
Holland Park is widely talked about as a suburb that has the benefit of great easy access to Brisbane City while still being surrounded by amazing parklands, excellent schools, charming cafe’s, bars and restaurants.
Total population: 5,539
Average age: 20-39
Median property price: $812,000
Cannon Hill is considered one of the best suburbs in Brisbane for its real estate and lifestyle potential, with the property market having moved exponentially in recent years.
The area has good schools, a train line, and the gentrification of shopping centres and older homes.
Total population: 9,691
Average age: 40-59
Median property price: $762,000
Another high demand market thanks to its close proximity to many amenities and transport.
The suburb is within a few minutes of Chermside Shopping Centre and only 10 minutes travel time from the airport and CBD.
Total population: 8,695
Average age: 40-59
Median property price: $727,500
Thanks to great infrastructure and high demand for school catchment areas, Mansfield is one of the most sought after pockets in the south-eastern suburbs of Brisbane.
Local commercial and retail development and expansion in Mt Gravatt also primes the suburb for more growth in future.
Total population: 9,552
Average age: 20-39
Median property price: $670,000
Stafford is surprisingly close to everything from choices of shops, schools, hospitals, to the city and transport making the suburb extremely easy to live in and get around.
Combined with it being a notoriously high-demand market with consistent property price growth, it’s no wonder the suburb is at the top of so many investors’ lists.
Total population: 6,821
Average age: 20-39
Median property price: $652,125
Just over the hill from big brother Stafford, this suburb has started to hit it off with families and investors alike.
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.
Total population: 6,449
Average age: 40-59
Median property price: $637,500
Chermside West offers the best of both worlds: it’s close to retail and business hubs, but it also offers a quiet retreat from its busier neighbouring suburbs.
Add to that two major Hospitals and a strong school catchment, you start to understand that it has strong investment credentials.
Total population: 6,791
Average age: 20-39
Median property price: $570,000
Arguably the most value of any Brisbane suburb, with a strong community feel and still very low key.
This suburb has awakened since a number of train stations have been planned for the area, better connecting it to greater Brisbane.
Limited stock of property and quick property sales has also imposed a demand which will only continue to push up prices for properties.
Changes in Brisbane property prices over the past two years
Brisbane: Mapping the market over COVID
During the height of Covid-19, Brisbane’s housing market defied the odds, shone through, and even came out relatively unscathed.
By the end of 2020, Greater Brisbane’s property price median hit a new record high of $616,387, which is $28,000 above the previous record set in early 2020.
House prices have risen modestly over each quarter of the 2020 calendar year, rising a further 0.8% over the December quarter to end the year 5.6% higher than the last.
Dr Nicola Powell, Senior Research Analyst at Domain explained:
“First-home buyers became active utilising incentives and low mortgage rates became the norm.
Upsizing buyers were enticed by cheaper credit and altered their wish-lists to think more about property characteristics such as space and lifestyle, rather than commute time and distance to the CBD.
The rising interest from interstate buyers and the movement of residents from regional Queensland into Greater Brisbane will continue to support demand. Outer suburban and lifestyle areas will be the main beneficiaries.”
By December 2020, 85% of Brisbane’s suburbs recorded annual growth.
Double-digit percentage price rises were even noted across 17% of suburbs.
In Brisbane’s north, 88% of suburbs increased in price, 86% in Brisbane’s west, and 85% in Bayside South.
In Bayside North and Brisbane East growth was seen in around 80% of the suburbs in the area.
Brisbane’s suburb of Thorneside recorded the strongest growth across all the suburbs with a 28.5% increase in house prices over the two-year period.
Virginia, Highgate Hill, Carina Heights, and Yeronga also saw house prices surge more than 20%.
Despite most Brisbane suburbs enjoying property price growth, 15% of suburbs recorded a fall in median house prices by December 2020.
The steepest price falls were seen in Ormiston (8%) and Burpengary East (8.4%).
Article Source: propertyupdate.com.au
Competition Heating Up for Rental Properties
The residential rental market just got tighter with the number of new listings reaching its lowest point since before the pandemic.
The availability of rental properties dropped -3.9 per cent in August, according to the Proptrack rental listing report from REA Group.
Rental volumes dropped the fastest in Melbourne at -16.9 per cent and Canberra at -29.9 per cent as lockdowns hampered the market.
Meanwhile in Sydney, “green shoots” were starting to appear with a 6.7 per cent increase in new rental properties as one-on-one inspections were introduced and activity picked up.
Change in rental listings
|Location||Monthly new listings||Annual Change||Total listings||Annual change|
Source: REA Group from realestate.com.au August 2021 data
REA Group director of economic research Cameron Kusher said in the report that the fall brought national rental listings to their lowest point since December 2019.
“The rental market has become even more competitive with the availability of rentals close to an all-time low,” Kusher said.
“The crunch in rental supply is being felt regionally, too. Total rental listings were at an historic low at the end of August in regional NSW, regional WA and regional Tasmania.
“Regional Victoria and regional Tasmania were the only regions in which total listings recorded a year-on-year increase.”
Nationally the vacancy rate remained at a multi-year low of 1.6 per cent in August, according to Domain.
This report showed in Brisbane, Hobart, Adelaide and Darwin landlords could use the tight levels to increase rent on new listings.
However in Melbourne, vacancy rates were continuing to rise, hitting 3.8 per cent.
Sydney remained relatively steady, with levels at 2.6 per cent since June.
While the rental market remains competitive, soaring property prices have pushed rental yields to all time lows.
Article Source: www.theurbandeveloper.com
Brisbane’s best property buys: Six must-see homes under $780,000
It’s a tough property market out there for buyers, with lots of competition and not much for sale. Here are six homes for under $780,000 – but you’ll need to be quick.
26/128 Merivale Street, South Brisbane
It is unsurprising more than one in two local residents in this neighbourhood had not been born in 1981. This stylish apartment holds big appeal for first-home buyers wanting to live within blocks of local bars, cafes, shops, myriad education campuses and the riverside buzz. It has two bedrooms and two bathrooms, and a car space on title. Right in the thick of the inner-south riverside action, 52 per cent of residents are aged between 20 and 39.
Place, Michael Hatzifotis 0414 048 604
1/118 Railway Parade, Norman Park
In the inner-east suburb bearing the name of Queensland governor Sir Henry Norman, this three-level townhouse has a fittingly blue-chip, elevated vantage over three levels. A garage, carport and porch form the ground level. Level two is all about socialising, with a breezy front balcony and a private rear courtyard accessed via glass sliders from the open-plan living, dining space and a modern kitchen. Level three holds the sleeping quarters and another balcony. The local primary is about 300 metres north. Two city train stations are within 500 metres.
Place, Chris Frangi 0481 113 362
52 Violet Street, Hemmant
A striking renovation of a humble original house set on 405 square metres of land. Today the three-bedroom weatherboard features a sassy stained-timber deck with slat screening and covered area at its rear, ready for all-season entertainment with lofty views. Bulimba Creek, park walking tracks and the city train station are within two blocks. There is a double garage, fences and European kitchen appliances.
First National, Brad McDonald 0404 418 220
21/2 Little Street, Albion
A Little apartment with a big personality, thanks to its warm decor and semi-circular front balcony. The floor plan is fluid. The 3.3 metre-by-5.1 metre balcony flows to an open dining-living space and the kitchen with bench and storage, before reaching two bedrooms, including the main with en suite and walk-in wardrobe. Its complex is listed as “pet-friendly”.
One Percent Property, David Sullivan 0447 070 595
59 Folkstone Avenue, Albany Creek
Families scouting houses with room to give each other space will get it at this double-storey residence. Its clever design creates four living zones: two indoors, including a large rumpus downstairs and a more formal lounge upstairs; and two outdoors, including a covered patio and an upstairs timber deck. There are three bedrooms and 610 square metres of land. The bathrooms are modern and the kitchen has timber benches.
Coronis, Josh Quinn 0429 945 847
185/293 North Quay, Brisbane City
Anyone who has skydived knows its amazing weightless feeling when nothing separates you from the world around you. This neat sky home gives its occupant a similar sense of boundless space, with uninterrupted views of the inner bends of Brisbane River and cityscape. Think ideal city getaway pad or first home with one bedroom, one bathroom and one car space.
Ray White, Benjamin Williams 0412 067 016
Article Source: www.domain.com.au
Brisbane-based developer Siera lodges Chevron Island apartment development plans
The Brisbane-based development and construction firm, Siera Property Group, are the latest in a wave of developers heading to the Gold Coast for the first time.
Seira, headed by the managing director and founder Brent Thompson, has laid plans on the sought-after Chevron Island for a 17-level project dubbed Tapestry, paying homage to the Island’s new Home of the Arts precinct.
The plans by the local BDA Architecture will see 83 apartments built on a 1,518 sqm site at 39-43 Darrambal Street, toward the southern end of the island.
Thompson, who sits on the board of UDIA QLD and chairs the Brisbane City Council Policy Committee, sees it as a shift in thinking for the company, who made their name in the Queensland capital developing luxury townhouses in Brisbane’s inner ring.
“Due to some council restrictions in Brisbane, we needed to identify a new opportunity where we could put a lot of effort in to what we’re delivering,” Thompson said.
Thompson has spent a lot of time on the Gold Coast over the last 18 months, spending time understand the Gold Coast market, as well as the Sunshine Coast and Brisbane, and why each market has been so desirable for different reasons.
“Spending time on the ground allowed us to understand what was coming to the market, what developers were saying, and who was buying sites and where,” Thompson added.
He identified some nice beachside opportunities, but really wanted to create something that was targeted at a wider net, rather than the multi million dollar apartments that are limited to the fortunate few.
“We want the local owner occupier, who could be living in a medium-size house in the area, to be able to downsize or rightsize, or have others who just want to find a new lifestyle, and have the opportunity to do so without being priced out.”
The 55 metre building will comprise 28 three-bedroom apartments and 55 two-bedroom apartments, around half of those with multipurpose rooms. There will be six apartments per level until level 14 where there will be five.
The two-bedroom apartments start from 84 sqm, while the three-bedroom units have internal living areas between 113 sqm and 141 sqm. Every apartment has a balcony of at least 10 sqm, as well as their own parking space.
There are 94 parking spaces across the two levels of basement parking, and 29 on the street level.
The street level will feature extensive raised planters and a water feature on entry to the lobby, where there will be a number of garden rooms and resident office space with a kitchen.
Crowning Tapestry will be a resident rooftop, complete with a resort-style swimming pool with day beds, a spa, and a pool deck. A barbecue and alfresco area, will sit in landscaping, as will dining surrounded by an edible garden. There’s set to be a private dining space with a terrace and fire pit, a gym with sauna and steam room, and a lounging area with a lawn.
It was important for Thompson to go local with all of the intricacies that come with developing a project. He’s used local architecture firm BDA, and is engaging local Gold Coast builders to deliver the project, despite Siera’s previous experience in building their developments.
He’s even gone a step further and, given the Gold Coast City Council’s efforts to make Surfers Paradise an arts and cultural hub, has engaged local artist Tanya Blanchard to create a piece of artwork that will hang in the lobby when completed.
“There’s a great local community on Chevron Island. It’s a tight-knit community, while being ideally located just five minute walk from the international tourist hub of Surfers Paradise,” Thompson says.
BDA says the architecture of the proposed development is sculptural and smooth-lined.
“A mixture of vertical blade walls and horizontal slab edges responding to available views and natural light. Cantilevered balcony’s protrude from the building body with curved edges softening the feathered edges,” the submission to the Gold Coast City Council read.
“Colours and materials have been selected to create a lightly textured and timeless material palette. White render, concrete, glass and timber screening create a rich and layered coastal effect.
About the developer
Siera Group, a property development and construction company, was established in 2014 by Brent Thompson.
Their primary focus has been apartments and terraces in Brisbane. In the last seven years, they’ve developed more than 70 residential dwellings in key growth markets in South-East Queensland, with a total end value of $50 million.
One of the main focuses is to acquire premium sites within established community settings, with strong connectivity to lifestyle amenity, where they feel our investment in design can make a positive contribution.
Fast Facts from BDA Architecture
This project offers an exciting opportunity to introduce a high quality apartment building into the heart of the emerging cultural precinct of Chevron Island. The project’s design makes strong architectural gestures that acknowledge it’s connection to the HOTA Precinct, Surfers Paradise beach-front and the Nerang River.
The 1,518sqm site is in a prime location, fronting Darrambul Street, in the heart of Chevron Island. Just steps away from the theatre of the Surfers Paradise hospitality scene, it’s beaches, and Evandale’s Arts Precinct, this area is fast transforming into the Gold Coasts cultural hub.
The site boasts 360 degree access to some the Gold Coasts best views, capturing the surfers skyline and beaches, wide spans of the Nerang River to the Broadwater and uninterrupted views to HOTA and the Gold Coast hinterland beyond.
The project’s unique location, in an emerging retail, restaurant, and cultural hub weaves together diverse backgrounds, experiences, cultures and tastes. This forms the ‘Tapestry’ that is modern apartment living with high quality communal facilities designed to create connections, community and sense of place.
The project comprises a total of 83 apartments (194 bedrooms) in a building that is 17 storeys. The apartments sit over a well-considered, split level podium, which seeks to conceal services from the pedestrian interface by housing on a mezzanine level, residing over the sloping driveway. This approach allows an almost double-height lobby space activating Darrambul Street and providing a high level of amenity for building users.
Apartments are a mix of 2 and 3 bedroom options that cater for a number of price points and encourage genuine diversity of ownership/occupation. The building also presents a well-defined pedestrian and vehicular entry, with resident parking located to the rear of the site and in 2 levels of basement.
‘Tapestry’ offers a high quality contemporary design, which looks to confidently engage and enhance Darrambul Street, positively contributing to the core Chevron Island precinct and it’s transformation into the Gold Coast’s cultural hub.
Article Source: www.urban.com.au
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