Inner city Brisbane market report End of financial year 2017
A word from John McGrath Brisbane remains a very compelling market for an investment or lifestyle change for young families, now that Sydney has become difficult to afford following five years of exceptional growth. South East Queensland is a market that really excites me. There’s great opportunity for investors and young families in Brisbane, Gold Coast, the Sunshine Coast, Toowoomba and lots of other places in between. Sydney and Melbourne are like New York and London, prices have reached a certain level and have simply become unaffordable for some buyers. This has led to greater demand in South East Queensland from southern-based investors.
High-quality properties in inner city Brisbane are often half or even a third of the price of Sydney, so the value for money is exceptional. Our Sydney agents are selling ordinary homes for $2,000,000 and more, whereas you can buy luxury homes in blue chip inner city Brisbane suburbs for similar money. Sydney home owners have an opportunity right now to take the 75% growth that their properties have had and buy into a much cheaper but equally appealing Brisbane market, and in many cases, be mortgage-free! Our Queensland agents are reporting a lot of new enquiries from Sydney and Melbourne buyers, a trend we believe will continue.
Average rental yields in Brisbane are currently 4.1% for houses and 5.3% for apartments, according to Core Logic. This is well above average, with yields in Sydney at 2.8% for houses and 3.9% for apartments and Melbourne at 2.7% and 4.2% respectively. (source: CoreLogic June 1) But South East Queensland is not just great for investors. Young families struggling with their mortgage in Sydney and Melbourne could completely transform their financial situation, not to mention their lifestyle, with a move north.
John McGrath
Houses Brisbane’s house market could well be described as ‘patchy’. This is evidenced in the fact that some of the best performing suburbs are neighbouring some of the least performing. In fact, some suburbs and segments of the market are dramatically outperforming the capital city average of 3.03% (May). Major driving factors include infrastructure, current and future development as well as urban planning. Other social factors that are influencing the market are affordability, migration, school catchments and even the quality of the local cafes.
Sometime however there doesn’t seem to be any apparent reason to why one suburbs experiences strong growth and the neighbouring doesn’t. Deeper investigation may uncover great opportunities. One of the trends that we are noticing across Brisbane is that houses below $1,000,000, with easy access to the CBD, are experiencing strong buyer activity, even more so if it has renovation potential. Brisbane’s prestige house market is performing well, particularly in blue chip suburbs. This segment is seeing a large increase in interest from Sydney and Melbourne buyers. Renewed confidence in this segment has increased sales volume with a number of prestige home owners taking this opportunity to downsize.
Suburbs with the highest median sale price Suburb
Sale price
Suburbs with the highest gross rental yield Suburb
%
Teneriffe
$2,100,000
Upper Kedron
4.58
New Farm
$1,605,000
Tingalpa
4.36
Ascot
$1,425,000
Keperra
4.30
Hamilton
$1,275,000
Everton Hills
4.25
Hawthorne
$1,200,000
The Gap
4.16
Bulimba
$1,170,000
Kenmore Hills
4.16
Highgate Hill
$1,140,000
McDowall
4.13
Wilston
$1,125,000
Chermside West
4.01
West End
$1,111,000
Chapel Hill
3.99
Stafford Heights
3.98
St Lucia Source: Core Logic
$1,090,000
14
10
20
Airport
21
25 2
2
9 5
24 13
4 6
11 3
3 22
9
10
1
6
8
12
16 19
17
7
University of QLD
23
5
7
15
18
Highest growth over the last 12 months Suburb Teneriffe
42.30
2
Gaythorne
26.61
Milton
Suburb
12 months (%)
1
3
Growth <5% over the last 12 months and <20% over the last 3 years
26.32
12 Months (%)
3 Years (%)
5 years (%)
1
Kangaroo Point
-8.09
10.53
20.07
2
Wooloowin
-6.9
3.52
20.87
3
Petrie Terrace
-6.71
14.18
18.24
4
Bulimba
-3.31
19.39
42.16
5
Windsor
-2.88
15.15
24.9
6
Balmoral
-2.12
9.14
19.35
4
Yeerongpilly
22.96
5
Yeronga
21.23
7
Indooroopilly
-1.68
15.79
13.03
8
Rocklea
-1.28
19.38
40.23
9
Spring Hill
-0.27
18.47
3.42
10
Northgate
0.07
16.19
42.9
11
Red Hill
0.89
18.53
23.72
6
South Brisbane
18.40
7
Tennyson
17.03
8
East Brisbane
16.09
9
Wilston
14.80
10
Hawthorne
14.29
Source: Core Logic
12
St Lucia
0.93
14.14
17.49
13
Ashgrove
1.15
11.66
28.32
14
McDowall
1.49
12.97
15.46
15
Moorooka
1.72
15.43
27.03
16
Chapel Hill
2.03
14.39
23.77
17
Albion
2.49
3.45
22.66
18
Mt Gravatt East
2.64
18.96
28.74
19
Kenmore Hills
3.41
15.26
16.64
20
Stafford Heights
3.98
18.56
31.43
21
Nundah
4.12
13.01
22.57
22
Auchenflower
4.27
16.63
13.25
23
Carindale
4.43
19.57
24.06
24
The Gap
4.5
11.11
20.37
25
Everton Park
4.76
16.16
20.88
Apartments The Brisbane CBD, Fortitude Valley, South Brisbane and West End apartment markets have certainly had some negative press over the past two years. An oversupply of one and two bedroom apartments in the inner city coupled with declining rents has resulted in a significant drop in investor activity affecting the lower end apartment market. The decrease in prices has created a noticeable trend of inner city migration by millennials, both as buyers and tenants. Brisbaneâ&#x20AC;&#x2122;s CBDâ&#x20AC;&#x2122;s consistent employment opportunities along with the ever improving cultural scene is fuelling this movement.
Brisbane’s cultural shift is most evident in its thriving café scene. Beanhunter.com, one of the country’s most trusted café review websites recently produced its Top 100 cafés of 2016 in Australia. Brisbane was represented 26 times, with 10 of the Top 30 located within a 10km radius of our CBD. Melbourne cafés, well known for exceptional coffee only featuring 17 times. In contrast, Brisbane’s prestige apartment market has been performing well. This is heavily driven by Baby Boomers downsizing or migrating from the outer suburbs or north from Sydney and Melbourne. Experiencing the most activity, are luxury apartments above $1,000,000 that are located close to the city, the river and lifestyle precincts.
Suburbs with the highest median sale price
Suburbs with the highest gross rental yield
Suburb
Sale price
Suburb
Kenmore
$635,000
Tennyson
7.65
Teneriffe
$600,000
Brisbane city
5.8
Newstead
$596,000
Mansfield
5.72
Bardon
$592,000
The Gap
5.68
Bulimba
$585,000
Oxley
5.64
Camp Hill
$570,000
Graceville
5.63
New Farm
$565,000
Spring Hill
5.61
Hendra
$564,000
Fortitude Valley
5.54
Hamilton
$553,000
Northgate
5.43
Norman Park
$550,000
Tingalpa
5.37
Source: Core Logic
%
8 18
23 2
16
14
9
13
19
7
6
10 9
10 5
12
5
6
3
11
4
4
15
8
7
1
1 17
2 22
3 21
20
Top 10 Cafés - Inner City Brisbane Suburb 1
Espresso House
Apartment sales >$1,000,000 within 5km of the CBD
National rank 2
Suburb
$1M-$2M
$2M-$3M
>$3M
Total
1
New Farm
22
4
2
28
2
Kangaroo Point
23
-
3
26
3
Brisbane City
17
4
2
23
2
The Lodge
3
3
Shawty’s Espresso
5
4
Newstead
10
2
4
16
5
Teneriffe
12
1
1
14
6
West End
13
-
-
13
7
South Brisbane
3
2
2
10
8
Hamilton
7
1
-
8
9
St Lucia
6
-
-
6
4
Cup From Above
7
5
Day Made
8
6
Pablo & Rusty’s
12
7
Fox Street Factory
14
10
8
Highgate Hill
4
1
-
5
Wolff Coffee Roasters
24
11
Bulimba
4
-
-
4
9
Flick n Beans
26
12
Balmoral
3
-
-
3
13
Milton
2
1
-
3
14
Paddington
3
-
-
3
15
Spring Hill
2
1
-
3
16
Kelvin Grove
2
-
-
2
17
Norman Park
2
-
-
2
18
Albion
1
-
-
1
19
Auchenflower
1
-
-
1
20
Coorparoo
1
-
-
1
21
Dutton Park
1
-
-
1
22
East Brisbane
1
-
-
1
23
Wilston
1
-
-
1
TOTAL
141
17
14
175
10 Coffee Anthology Source: Beanhunter Top 100 cafes in Aus 2016
30
Source: Core Logic
Bulimba 170 Riding Road Balmoral, QLD 4171 3914 1000
New Farm 876 Brunswick Street New Farm, QLD 4005 3638 1400
Paddington 195 Given Terrace Paddington, QLD 4064 3088 1555
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