Areas outside of the capital city shine as Brisbane recovers from the influx of too many apartments
Brisbane is beginning to recover from the unit oversupply, but it’s still in a precarious position.
“The oversupply of apartments in Brisbane is starting to get back to an almost-normal level, though it’s probably still a few courses away from getting back to normal,” says Damien Lee, head of acquisitions at Caifu Property.
“But it wouldn’t take much to put it into oversupply again, based on some more big projects coming through, so in Brisbane and its surrounds we’re still tagging the land side of things.”
The house market does in fact seem to be flourishing, in contrast to the unit market, with values rising at strong rates.
“We’re seeing fantastic price growth in the housing market, from middle ring into the suburban ring, based on the satellite city factors that they’re planning in,” Lee says.
Areas outside of Brisbane continue to be the stars of the Sunshine State. Southeast Queensland has been great for interstate investors, given the affordability of properties in that area, the significant population growth and the available opportunities in the job market. While the Gold Coast continues to perform wonderfully, however, it may also be in danger of oversupply.
“The Gold Coast is about to come into a heavy oversupply of apartments with approval and construction underway, but there’s a limited supply of new residential land available on the Gold Coast as well,” Lee says.
The luxury market seems to be slowing down, but ultimately buyers are still getting quality houses at far lower rates than in Sydney and Melbourne.
Infrastructure enhances appeal
The available amenities are adding to the appeal of some suburbs north of Brisbane.
“The Northern Suburbs are quite good – there’s a new university coming up in Petrie, while Red Cliffs and North Lakes are nice areas,” says Philippe Brach, CEO of Multifocus Properties.
“Within 50 minutes of the CBD, you can find decent houses below $550,000. There are some good investments to be had that are growing nicely in terms of capital gains because you’re so close to the centre, but that also offer better yields than if you’re closer to the city.”
With an infrastructure boom happening in Brisbane, this could drive up demand considerably for these nearby pockets.
SUBURB TO WATCH
ROCHEDALE SOUTH: Houses triumph while units falter
A beautiful suburb that attracts families and investors, Rochedale South has a thriving house market but struggles to generate demand for units.
House values increased by 5.3%, and the median value passed the $500,000 mark in the 12 months to August 2018. This continues a strong growth trend observed over the past five years. By contrast, the unit market has seen values falling over the same period, with the decline peaking at 14.1% in the year to August 2018.
Rochedale South is known for having large blocks of land and lots of greenery, making it a great place to enjoy a family lifestyle. Investors have noted its proximity to the more expensive suburb of Eight Mile Plains.
Houses: Demand for houses in Rochedale South has been consistent for many years
Lifestyle: With its large pieces of land and open spaces, Rochedale South is perfect for families