MARKET OUTLOOK
CARINA TOWNHOUSE/UNIT MARKET
RESIDENTIAL
RENTAL
The growth in popularity of townhouse product has been a trend driven on the back of affordability, amenity and convenience. Over the recent period, the quality of townhouse developments has seen significant change, particularly as their target market grows in scale, with this product typology now in favour with families, couples, downsizers and upsizers.
Short-term median weekly rental price growth for threebedroom townhouses across the Carina Catchment has been solid, recording 2.1 per cent per annum over the last 12 months, and 1.9 per cent per annum over three years. Similarly, long-term rental growth is also solid, recording 2.1 per cent per annum growth over ten years.
Whilst demand for this product may be increasing, supply is likely to be constrained. Recently Brisbane City Council approved an amendment to the City Plan which restricts the development of townhouses in certain zoned land. Townhouses already approved are not affected but this will impact future supply within the Council area. With only 23.6 per cent of the Carina Catchment made up of units and townhouses, this product type will become sought after.
Three-bedroom townhouses across the Carina Catchment have consistently recorded higher median weekly rental prices than three-bedroom houses – highlighting the popularity of this product type. TOWNHOUSE / UNIT MEDIAN PRICE GROWTH
6.3%
Carina Townhouse / Unit Market
20yr growth pa
The following insights focus on Carina and its immediate surrounds. Long-term median price growth has been significant across the townhouse and unit market in Carina, recording a figure of 6.3 per cent per annum over 20 years. Importantly, Carina offers a true value proposition when compared to other capital cities. When comparing proximity to the Central Business District (CBD), pricing for new townhouses in Carina is substantially more affordable than suburbs in both Sydney and Melbourne.
Prepared by Urbis; Source: APM PriceFinder
As the table adjacent indicates, there has been an increase in sales of townhouses and units priced from $550,000 and over - increasing from 16.7 per cent during 2015 to 25.2 per cent during 2019. New townhouses in the catchment are being marketed with prices starting at $599,000 and up to $945,000 (four bedroom) highlighting the strengthening market. This price bracket creep indicates a move towards a more premium product as the Carina townhouse market matures. Demand for this product type should increase as residents look towards low maintenance living and take advantage of the popularity of Carina’s proximity to employment, amenity and lifestyle nodes.
Prepared by Urbis; Source: APM PriceFinder
TOWNHOUSE / UNIT SALES BY PRICE BRACKETS PRICE BRACKETS
2015
2019
Up to $449,999
33.8%
41.1%
$450 - $549,999
49.5%
33.8%
$550 - $649,999
14.2%
19.2%
$650,000 and over
2.5%
6.0%
RENTAL PRICE AND GROWTH 3-bed townhouse
$480 $470
$470 $465
$453 $443
$390 $380
3-bed house
3-Bed Townhouse 1yr 3yr 10yr
3-Bed House 1yr 3yr 10yr
NEW AND NEAR-NEW THREE-BEDROOM TOWNHOUSES BEING ADVERTISED IN CARINA ARE REGULARLY ASKING RENTAL PRICES UPWARDS OF $550 PER WEEK.
Q4 2009
Q4 2016
2.1% growth pa 2.0% growth pa 2.1% growth pa
Q4 2018
1.1% growth pa 2.0% growth pa 2.1% growth pa
Q4 2009
Prepared by Urbis; Source: Residential Tenancies Authority Based on postcode 4152 Carina, Camp Hill, Carindale
Prepared exclusively for | Frasers Property | June 2020