How to identify Brisbane’s growth suburbs

August 04, 2015
Melinda Halloran

At the start of 2015, South East Queensland was widely touted as the Australian market to watch this year, and this has so far rung true.

Things may be looking pretty bleak for buyers in Sydney and Melbourne, but the same can’t be said about Brisbane. 

Growth in Brisbane is being driven by our recovering economy – which suffered from the effects of the GFC and an onslaught of natural disasters – low interest rates and attention from investors shying away from Sydney and Melbourne.

These factors, coupled with growth potential, have seen a positive turnaround in the last 18 months.

A snapshot of the Brisbane market 

According to the QBE Australian Housing Outlook 2014–2017 report, 2013–14 saw a divide in the market, with growth in the city’s inner and middle suburbs, but a decline in property values in the outer suburbs.

The report does note, however, that there is growing demand from first home buyers across the city, and that many other buyers are now looking towards the outer suburbs as an affordable alternative. This should see prices pick up in these areas.

Most industry experts agree that property within 10 km of the city will consistently perform well. While prices within this ring are higher, there are a still a number of affordable suburbs within 10 km of the city where you can still pick up a bargain. 

Looking forward, demographer Bernard Salt has suggested that suburbs within 6–20 km of the city will be the ones to watch in the next decade, as developers start to turn their focus towards middle suburbia. 

Highest capital growth suburbs for 2014

According to RP Core Logic Data, the highest performing suburbs (in terms of capital growth) coming into this year were as follows:

Houses

Gumdale, 46%

Seventeen Mile Rocks, 37%

Ascot, 33%

New Farm, 31%

Tennyson, 25%

Units

Teneriffe, 35%

Robertson, 25%

Loganholme, 24%

Taigum, 22%

Boondall, 21%

Starting your property research 

Realestate.com.au has a useful resource for that lets you access data for each suburb, including median price, annual growth and rental yield. You can sort this by units and houses, to give you a snapshot that matches the type of property you are interested in purchasing. 

Data from this map revealed the following top performers in the housing market for annual growth:

  • Griffin: 13.9% annual growth, $433,000 median price
  • Marsden: 9.4% annual growth, $330,000 median price
  • Gumdale: 8.8% annual growth, $1.8 million median price
  • Warner: 8.3% annual growth, $487,000 median price
  • Wakerly: 6.9% annual growth, $700,000 median price

Growth trends within clusters of suburbs can be identified using this map, such as Wavell Heights, Nundah and Chermside, which all have the same annual growth of 4.3%.

It should be noted that choosing a suburb for property investment depends not only on growth figures, but also other factors such as:

  • The suburb’s past performance
  • Infrastructure projects predicted for the area
  • Whether you wish to purchase a house or unit
  • Proximity to the city, major arterials and public transport
  • Rental yield, if you are planning to rent it out

You may also be interested in:

Brisbane’s cheapest inner-city suburbs revealed

Property investment in Brisbane

Banks clamp down on investment lending

Posted in: Property investment

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