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The Top 15 Brisbane Suburbs Primed for Growth in 2021

Brisbane Suburbs

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.

Brisbane Suburbs

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.

Why?

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.

Ascot

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.

Highgate Hill

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.

Wilston

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.

Ashgrove

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.

Taringa

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.

Tarragindi

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.

Holland Park

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.

Cannon Hill

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.

Wavell Heights

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.

Mansfield

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.

Stafford

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.

Stafford Heights

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.

Chermside West

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.

Keperra

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

Houses

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

Brisbane

The Gabba Games – State’s $1b plan to turn stadium into sporting Mecca for 2032

Gabba

The Palaszczuk government will push ahead with a redevelopment of The Gabba as the centrepiece of its 2032 Olympic Games bid, but it still needs support and a whole lot of money.

The government has rejected lacklustre greenfield sites near Bowen Hills and instead gone across the river to Queensland’s major AFL and cricket venue at Woolloongabba. If the plan goes ahead, and Queensland secures the games, The Gabba will become a building site for five years while an Olympic-class stadium is built.

The Gabba is normally used around 40 weeks in every year. Taking it out of action will require negotiation with a neighbouring school, the Brisbane Lions and Queensland Bulls, along with the Queensland Cricketers’ Club, which has previously been a stumbling block to work on the stadium. It is yet to be seen whether losing a home ground, and maximum revenue for five years, is worth having a larger, modern venue to return to.

While the International Olympic Committee favours using existing venues, thereby reducing the cost to host cities, Palaszczuk is intent on asking the Commonwealth to help fund a complete rebuild. There is no funding agreement yet, let alone architectural plans, but Palaszczuk suggested the new stadium could cost $1 billion.

Palaszczuk said another 8,000 seats could be added to The Gabba, taking its capacity to 50,000, serviced by the nearby Cross River Rail station currently under construction. It would be higher than the existing stadium, to allow for pedestrian overpasses across nearby roads to funnel patrons directly into the new venue.

That would give The Gabba more seats than the old QE2 stadium, which currently has capacity of 48,500, but fewer seats than Suncorp Stadium (52,500). It would have better transport connections than the Nathan venue and in the circular format that suits athletic events and the Olympic opening and closing ceremonies.

“The Gabba has been home to our sport since 1895,” Palaszczuk said.

“A home for the 2032 Olympic Paralympic Games could be its crowning glory.”

“We’ve hosted the AFL here, we’ve hosted cricket here, but for the Olympics, this is front and centre – opening and closing ceremonies, athletics, you name it, it’s going to be the best,” she told Nine’s Today program.

Palaszczuk told parliament a key factor in deciding to use The Gabba was being able to utilise the adjacent Cross River Rail station. She noted the rail project was being delivered with “not one dollar from the Commonwealth” but her office was not in a position to clarify whether the $1 billion would include any rail station components.

The Gabba was built in 1895 and has undergone two substantial renovations and refurbishments since 1993.

The last major redevelopment was completed in 2005 when a 24-bay grandstand built for $128 million.

The Gabba’s public, corporate and media facilities also received a $35 million upgrade in 2020.

The Labor government will seek financial support from Brisbane City Council and the federal government for the project.

“We do need this, and it’s going to be utilised for the future, so they don’t want white elephants they want workhorses, and The Gabba is definitely a workhorse,” Palaszczuk said.

The International Olympics Committee named Brisbane as its preferred host city in February.

But a final decision rests on detailed discussions with Games chiefs and key commitments from the federal government.

Australian Olympics Committee president John Coates addressed cabinet on Monday, where MPs formally endorsed Brisbane’s candidacy.

“This is still contingent on guarantees that need to be received from the federal government,” Palaszczuk stressed on Monday.

She has had a discussion with Prime Minister Scott Morrison and more talks will occur in the coming weeks.

“We are basically doing years and months of work in a very short time frame to meet the deadlines the IOC has set us,” she said.

The state needed the boost the games would bring, including 130,000 jobs.

“It gives us hope, after going through the pandemic. It gives us hope for the future,” the premier said.

Morrison is expected to have more to say on Queensland’s Olympic plans on Tuesday.

Last month, he told the IOC the Australian government was firmly behind Brisbane to host the games.

But Brisbane is not without rivals.

Earlier this month, South Korea said Seoul had submitted a proposal to host the 2032 games, despite Brisbane’s frontrunner status.

 

Article Source: inqld.com.au

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Brisbane

Irongate Group Acquires Two Brisbane Industrial Properties

Irongate

Irongate Group (ASX: IAP; JSE: IAP) has entered into agreements to acquire:

  • an industrial facility located at 57 – 83 Mudgee Street, Kingston QLD (Kingston Property); and
  • an industrial facility to be constructed at Lot 24, Dunhill Crescent, Morningside QLD (Morningside Property).

Both properties are being acquired on a fund through basis. The purchase price of the Kingston Property is $14,320,000 representing an initial yield of 5.73%, and the purchase price of the Morningside Property is $5,932,000 representing an initial yield of 6.02%.

Commenting on the acquisitions, IAP CEO, Graeme Katz, said, “the Kingston Property will comprise two brand new, high quality generic warehouse and distribution facilities with 2,270m² leased to Construction Sciences for 10 years with fixed annual escalations of 2.5% and 3,250m² leased to Wako Kwikform for 8 years with fixed annual escalations of 3.0%. The Morningside Property comprises 1,016m² of space that will be leased to 3M Australia to be used as its Queensland head office and last mile distribution facility. The lease term is 10 years with fixed annual escalations of 3.0%.

“Both acquisitions are consistent with IAP’s strategy of acquiring good quality industrial properties with strong tenant covenants and long lease terms. IAP believes the Brisbane industrial market currently represents relative value, and the acquisitions complement IAP’s recent Brisbane industrial acquisitions in Brendale (completed in January 2021) and Pinkenba (completed in March 2021). The acquisitions will increase IAP’s exposure to industrial property to 34% by both income and value.”

Both acquisitions are due to complete in mid-May 2021.

 

Article Source: finance.yahoo.com

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Brisbane

Brisbane Housing Market Insights: April 2021

Brisbane

The Urban Developer’s Brisbane housing market insights for March reveals increased demand for houses has been underpinned by increasing consumer sentiment and a surge in interstate migration.

This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

Brisbane house prices have soared to record heights after a steady 12 months of growth and a rebound in listings and sales during recent months.

Brisbane’s housing market has remained particularly unaltered by the closure of international borders, where historically high demand from overseas migrants has been disrupted.

Brisbane advanced a further 2.4 per cent during March, pushing it up 4.8 per cent for the recent quarter and 6.8 per cent for the year to date.

The current median value for dwellings is $548,260, which is $12,642 higher than just a month ago.

The median house price of $607,969 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.1m, and Melbourne at $859,097.

The premium end of the Brisbane’s housing market is still leading the acceleration in capital gains with upper-quartile property values rising by 3.1 per cent. Lower quartile property values were up 1.1 per cent throughout March.

Brisbane median house and unit price values

TypeMonthQuarterAnnualMedian
All2.4%▲4.8%▲6.8%▲$548,260▲
Houses2.6%▲5.3%▲7.9%▲$607,969▲
Units1.0%▶2.4%▲1.9%▲$400,866▲

^Source: Corelogic Hedonic Home Value Index – March

 Brisbane has clocked its highest auction clearance rate in six months.

CoreLogic’s weekly auction clearance rate across the combined capitals has been at or above 80 per cent just five times since 2008, and four of those were in March, 2021.

The week ending March 7, recorded Brisbane’s highest auction clearance rate on record—82.3 per cent—while also being the busiest week for auctions since late March, 2018.

Total listings across the country remain 26 per cent below the five-year average.

Brisbane auction clearance rates

WeekClearance rateTotal Auctions
Week ending 7 March 202182.3%107
Week ending 14 March 202165.2%110
Week ending 21 March 202173.0%151
Week ending 28 March 202168.8%191

^Source: Corelogic Auction Clearance Rates – March

Gross rental yields in Brisbane remains favourable compared to Sydney and Melbourne at 4.3 per cent.

According to the SQM, Brisbane’s gross rental yield for houses is currently 4 per cent and 5.2 per cent for units.

Vacancy rates are where your jaw may drop, with Brisbane at just 1.5 per cent, and other locations below 1 per cent.

Traditionally Brisbane’s vacancy rates have been tight, hovering well below the level of 2.5 per cent, which represents a balanced rental market.

Brisbane residential rental vacancy rate

CityMarch 2021 vacancy rateMonthly % change
Brisbane1.5%►0.0%►

Rental stock on market

CityMarch 2021 vacanciesVacancy net loss
Brisbane5407▲97▲

^Source: SQM Research – March

Brisbane rent prices

TypeRentMonthly % changeAnnual % change
Houses$483.70▲1.1%▲3.2%▲
Units$383.60▲0.2%▼1.4%▲

^Source: SQM Research – March

The seasonally adjusted estimate for total dwelling units approved in Queensland in February was 3,930, 40.5 per cent higher than recorded in January.

Loan data shows investors have started coming back into a housing market they had largely vacated and the boom is being driven overwhelmingly by established owner occupiers and first home buyers.

Queensland building approvals

^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)

DwellingApprovedMonthly % change
Houses2792▲25.4%▲
Units3930▲40.5%▲

^Source: Australian Bureau of Statistics; Reference period February

Queensland home loan lending indicators

RegionFirst home buyer loan commitmentsFirst home buyer ratio – dwellingsFirst home buyer ratio – housing
Queensland3078▲ ▼39.6%▼34.7% ▼

^Source: Australian Bureau of Statistics – February

Queensland interstate migration

RegionSeptember (quarter) 2020 arrivalsSeptember (quarter) 2020 departuresSeptember 2020 quarter net
Queensland22,317▼15,080▼7,237▲

^Source: Australian Bureau of Statistics – September quarter 2020

Brisbane’s housing market: policy updates

Australia’s central bank will maintain low interest rates to support the country’s ongoing economic recovery and surging housing market, buoyed by its busiest Easter auction market on record.

Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.

Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.

Brisbane housing market forecasts

ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy while Commonwealth Bank updated its forecasts, projecting a strong rebound in prices across the second half of 2021.

CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.

Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.

 

 

Article Source: theurbandeveloper.com

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