Take advantage of Brisbane’s most affordable suburbs

May 18, 2016
Melinda Halloran

Despite consistent growth, Brisbane still has a number of affordable hotspots for home buyers and investors alike. With the inner city now becoming increasingly built up, it’s the outer suburbs that are giving buyers the best value for money.

PRD Nationwide recently released its 2016 list of affordable hotspots in Brisbane. Here are the top performers for houses and units, and the average price you can expect to pay for a property in these areas. 

Houses

  • Runcorn – $519,00
  • Keperra – $465,500
  • Wynnum West – $490,000

Units

  • Corinda – $415,000
  • Mount Gravatt East – $450,000
  • Cannon Hill – $461,000

When choosing the hotspots, researchers considered recent price growth as well as development prospects and the investment potential for each area. So while there may be parts of Brisbane that are cheaper still, these suburbs are slated for growth. In Wynnum West alone, there’s a total of $62 million that will be invested by the end of this year.

Crunching the numbers

In the Brisbane City Council catchment, the average sale price for a house is currently $652,500, while units come in at $445,000. Unit prices are on the up right now as investors are turning to Brisbane and some baby boomers start to downsize. This may change, however, as the full supply of inner-city apartments starts to come onto the market.

The release of this report comes 12 months after we looked at Brisbane’s cheapest inner-city suburbs. Below we’ve compared the average price from last year’s standout inner-city suburbs with the median sales prices for 2016 so far. 

Houses

 

2015

2016

Rocklea

$353,030

$328,200             

Keperra

$439,015

$479,000

Tingalpa

$478,686

$475,333

Salisbury

$485,570

$588,667

Nathan

$487,265

$586,333

 

Units

 

2015

2016

Holland Park West

$347,010

$482,166

Gordon Park

$347,497

$506,667

Kedron

$347,712

$407,833

Tingalpa

$348,072

$393,333

Moorooka

$350,756

$414,667

 

Some of the greatest price fluctuations have occurred in suburbs like Gordon Park, where the median monthly sales for units this year have ranged from $342,000 in January up to $589,000 in February and March. This can be largely attributed to the amount of development happening in the area. Similarly in Salisbury, the median house sales price was $536,000 in January and $640,000 in February.

These monthly fluctuations show that while prices do seem like they are rising, there are still a lot of affordable properties to be found in Brisbane. Rather than buying into media hype about the housing affordability crisis, I encourage you to consider the outer suburbs as a worthy investment option.

For investors, areas outside of the city ring are proving lucrative, with REIQ finding that the Gold Coast, Sunshine Coast, Ipswich and Caboolture all have vacancy rates of less than 2%.

Why Brisbane’s outer suburbs are such a good buy

The vacancy rates from REIQ show growing demand for suburban and coastal living – not just with home owners, but with renters as well. It paints an interesting picture of areas commonly shrugged off by buyers who were more interested in Brisbane’s inner-city properties. 

The rise in demand in these areas also comes at a time when the state of the workforce is changing. With more and more people engaging in flexible working arrangements like working from home and self-employment, fewer people need to make a daily commute into the city. Only time will tell if this trend will cause a shift in the property market.

So if you have been looking to buy, consider casting a wider net and you’ll be surprised what you may find.

Related stories
Brisbane’s cheapest inner-city suburbs revealed
Brisbane suburbs with the highest rental yields

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