Brisbane's property market managed to weather the housing downturn that plagued Australia for the past two years, making it a safe and viable place for investors, an economist said.
While there are a lot of concerns regarding Brisbane's apartment oversupply, Realestate.com.au chief economist Nerida Conisbee said the city's rental market continued to garner interest from investors and buyers.
"While prices in Sydney and Melbourne have tumbled over the past two years, pricing in Brisbane has been remarkably stable. This is despite a lot of concerns about apartment oversupply, which have turned out to be vastly overstated," she said.
Read more: 2 in 3 investors likely to invest close to where they live
According to Realestate.com.au, five key suburbs present growth potential for would-be investors.
One suburb with an optimistic return potential is Wishart, 14 kilometres south of Brisbane's central business district (CBD). This suburb has a median price of $725,500 for houses and $392,000 for units. Its median rental price for a home is $475, which returns a yield of 3.4%. Units in Wishart have a median rent of $410%, resulting in a yield of 5.4%.
Camp Hill is also one of the most active suburbs in Brisbane. Approximately eight kilometres away from the CBD, this suburb witnessed a 60% growth in house prices over the past decade, bringing its median value to $900,000.
Also read: Brisbane Predicted To Boom By 20%
Auchenflower, known for its proximity to Suncorp Stadium, recorded an even larger price gain over the last decade at 70%, raising its median house value to $1.275m. Homes in this suburb rent out for $525 weekly, returning a rental yield of 2.1%. Auchenflower units return a rental yield of 4.5% for a median rent of $385.
Bulimba and New Farm also registered a 70% price increase over the past 10 years — their respective median prices now sit at $1.31m and $1.55m.
Local and interstate investors are attracted to Bulimba's "traditional Queensland atmosphere" while in New Farm, investors take advantage of its proximity to CBD and access to Brisbane River.
Top Suburbs :
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