Oh Brisbane – beautiful one day, relatively affordable the next!
Brisbane continues to perform steadily. While we haven’t enjoyed a giant boost in population growth on the back of interstate and overseas migrants, we are being recognised more and more as Australia’s most affordable eastern capital and we seem to ooze price growth potential. It’s firing in some suburbs more than others so this Month In Review is an opportunity to dig down and see where the hot market sectors are.
First up – entry level and mid-range property appears to be a gun sector right now. We always say stay within 10 kilometres of the CBD and this is why – buyers are sheep-dogging over each other when an appropriately priced property hits the market. Property investors are a savvy lot too. Their activity is centering on second hand unit stock. It’s price accessible, in locations that have a lot of rental demand and for a few grand, you can spruce up the space and add some value. Attached housing in the $330,000 to $550,000 range is doing well. Try Coorparoo and Greenslopes for units and townhouses at $330,000 to $400,000. That price point will land you an unrenovated, 2-bed, 1-bath abode in a 1980s complex. Townhouses at $450,000 to $550,000 are 3-bedroom, 2-bathroom for the record.
There are also historic values factoring in as Art Deco units and townhouses garner appeal. You’ll typically find a 2-bedroom, 1-bathroom holding within New Farm or Teneriffe. Premiums are being paid for this style of property – it’s in hot demand.
For detached housing, the sweet spot is in the $600,000 to $800,000 bracket around the mid/ inner ring. You can get great quality homes at a fraction of the Sydney prices. Coorparoo, Camp Hill and Norman Park provide high set 3-bedroom, 1-bathroom dwelling in average condition on a 405 square metre to 607 square metre allotments at this price point. Our expectation is that this sector will continue to perform over the remainder of the year. Capital growth is tracking at approximately 5% per annum for the past 12 months and there is a good level of supply at present to match the demand, which is coming predominately from owneroccupiers. Their intention isn’t to try and make strong capital growth in a short time frame in most cases – they’re looking for a long-term purchase. Buyers with a bit more coin to spare are fighting over entry-level homes in the very inner ring up to $1 million. Newstead, New Farm, Teneriffe, Ascot and Hamilton – this price will get a great renovator with upside potential in one of these tried and true hotspots, and buyers are snapping them up.
As these sectors continue to run harder, the flow on effects will see the current stock of owners given a leg-up into even more comfortable abodes, so expect to see even more activity in the $1 million-plus bracket in the future. This sort of activity is already evident in great locations like Bulimba, Balmoral and Hawthorne where buyers are snapping up good quality homes in these very desirable positions for between $1 million and $2 million. Obviously this isn’t cheap stuff but it certainly is wanted.
A couple of examples on how well some sector are performing:
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.