Regional pockets are still where it’s at in the Sunshine State, as Brisbane is lagging behind in terms of notable growth
The southeastern regions continue to put their best feet forward for Queensland in terms of investment options.
“Southeast Queensland, as well as certain regional areas, look promising for the near future. The resource sector seems to be gearing up, with multiple big infrastructure projects in the pipeline,” says Ian Hosking Richards, CEO of Rocket Property Group.
Indeed, the Gold Coast remains active, with CoreLogic’s Auction Market Review for June 2019 showing that this area was the busiest among non-capital city markets over the June quarter.
However, not all regions outside the metro are expected to perform well, as CoreLogic’s Home Value Index for June 2019 points out. The Queensland outback has one of the worst housing markets in the country as a result of natural factors like droughts and flooding.
Meanwhile, although the capital city is not currently experiencing strong growth, there are various initiatives to get things going.
“There are some impressive civil projects for Brisbane either already started or slated for the near future. As with all areas nationally, lack of credit is hampering the property market, and will continue to do so until restrictions are eased,” says Hosking Richards.
Over the 12 months to June 2019, Brisbane’s rental market has seen a turnaround, with rental rates on the up again following a period of decline. According to CoreLogic’s June 2019 Quarterly Rental Review, Brisbane was one of only two capital cities to report an annual change in rents that was greater than the change recorded in 2018. The average yield also increased from 4.4% to 4.6% during the same period.
For now, Brisbane continues to grab the attention of buyers who are priced out of more expensive markets like Sydney and Melbourne. According to Herron Todd White’s Month in Review report for July 2019, a budget of $500,000 goes reasonably far in this state, and attached housing is an option in the middle- and outer-ring suburbs.
Closer to the CBD where oversupply has been an issue, this amount could get a buyer a goodsized unit. The Gold Coast, Tweed Coast and Lower Logan also have a diverse range of properties at this price point, including acreage and units on the beach.
SUBURB TO WATCH
AUCHENFLOWER: City suburb defies negative trend
Brisbane may not have been the best performer in terms of capital growth in recent years, but the inner-city suburb of Auchenflower is seeking to defy this trend, with dwelling values increasing in the 12 months to June 2019.
The median house price in Auchenflower hit $1m following a boost of 4.1% during this period. This maintains a growth trend reported over the past fi ve years. For units, on the other hand, the 2.1% rise in values was the first positive movement in the market since before 2014. Unit rents also went up by 1.3% to an average of $380 per week.
Residents benefit from Auchenfl ower’s convenient location just 2.5km from the Brisbane CBD.
Location: Auchenflower is well situated just minutes from the Brisbane CBD
Growth: The suburb’s unit market breaks cycle of negative growth as values rise by 2.1%
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