The month in review: Brisbane
By Herron Todd White
May, 2010
Travelling the highs and lows of our local market has
revealed the broad gamut of property values available in
our ever expanding capital.
For real entry level prospects there are a couple of
options but most agree the very affordable housing is in
Kingston/Woodridge.
Located 21km from the CBD, Kingston is dominated by
housing commission design 1960’s and 1970’s homes on
blocks kicking off at 600sqm and going up from there.
Most blocks have the standard fencing, landscaping,
driveway combo and properties are mostly 3 bedroom,
single bath. The area has its fair share of attached housing
with a large number of tenants in place. It’s also of note
that there is some infill style subdivision resulting in new
homes on smaller lots.
In terms of dollars, the prospects look good for those
seeking an easy entry into the market. Homes are usually
at $250,000 to $290,000 with the real cheapies at $230,000
and the very cream of the crop toping out at $330,000.
If this still seems a little beyond your expectations, 2
bedroom units fetch from $175,000 to $225,000 with 3
bedders showing $260,000.
The buyer profile is generally owner occupiers in the
lower socio-economic spectrum, but there are plenty
of small time investors taking advantage of the strong
rental demand. Yields are difficult to gauge as rental
levels seem inconstant but if history is anything to go
buy, this is an area that trades more on cash flow than
capital growth. Mind you, as Brisbane’s urban footprint
continues to expand and transport options become ever
more stressed, property this close to the CBD will become
increasingly scarce.
Our man on the ground has highlighted a couple of
cautions. He notes that the area’s reputation tends to
isolate it from the mainstream market. Strangely, when
the rest of the market is doing well, demand here tends
to soften as owners get keen to trade up. Once general
economic uncertainty hits and money becomes tough
to source, Kingston real estate starts to pick up. It can be
volatile so it’s not for the feint hearted investor in many
respects.
The tip seems to be its OK to buy in but don’t expect quick
money – best to enjoy the income stream and allow for a
10 year investment horizon regards any substantial price
rises.
The flip side is our perennial favorite of Hamilton/Ascot.
Old money suburbs such as these provide for a hefty
entry into to high ends abodes. Located only 5km from
the CBD, the area is a favorite for the well-to-do.
Your standard home is generally on over 600sqm of land,
will offer at least 4 bedrooms, 2 bathrooms and a double
garage, and will be a 1930’s construction that has been
very well maintained. There are also plenty of post wars
getting the knock down with extremely high quality new
contemporaries the norm. The property will also likely
have a pool with some of the larger blocks having the
requisite tennis court. Dwellings are a more than adequate
200sq to 250sqm in area with the more expensive homes
easily cracking well above this level.
Price points vary a little depending on location. In the
main sections of the suburb the bulk of homes are over
$1M with a land component of at least $700,000. There
are cheaper “fringe” areas that show prices of $650,000
plus but there is usually a trade off. As far as how high you
can go, one of the most recent premium sales showed a
price of $8.72M. For this money you landed an extremely
high quality three level contemporary on an 842sqm
block with excellent city and river views. The home has
two double garages and a pool. There is most probably a
living area exceeding 400sqm.
The buyer profile is the inner city professional/industry
leader looking to locate close to the CBD with access
to the airport as well as the quality village atmosphere
of the Racecourse Road café district and the riverfront
restaurant areas. Locations such as this are also about
having enviable neighbors and extraordinary views.
Prospects for this end of the market are linked to general
economic buoyancy. When things are good in the
boardroom, they’re good in the suburb but you need the
wherewithal to ride out any downtimes. A swing in the
percentage of values in a prestige market can translate
into hundreds of thousands of dollars.
Smart investors look to go small scale. The second hand
attached housing/unit market is generally a good thing
and tenants love the area so buyers are unlikely to feel
too much pain at the entry level property point.
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