Brisbane's housing market continues to depend on its luxury segment for growth, according to the latest study by Upside.
House prices in the city grew modestly in December, up 0.7% monthly and 2.4% quarterly.
"Growth in the city has predominantly been driven by properties at the top end of the market, which are outperforming lower value properties," Upside said.
While overall property prices in Brisbane are expected to increase by up to 5% this year, apartments might continue to record muted growth at 2% due to an overstock of supply.
Still, Brisbane’s relative affordability compared to other capital cities makes it an attractive prospect for buyers. This has also contributed to strong interstate migration, a trend that is expected to continue this year. Brisbane is poised to witness an annual population growth of 1.75%.
"Low-interest rates and a lower Australian dollar will also boost the Queensland economy and property prices," Upside said.
Also read: Brisbane Tops Luxury Property
Three Brisbane suburbs are expected to be property hotspots: Rocklea, Spring Hill, and Everton Park.
Rocklea will continue to be on investors' radar due to its median house value at $397,273, which is the lowest within a 10-kilometre radius of the city centre. It also has the highest rental yield at 5.1%. Flipping properties is projected to be on trend in this suburb.
"Brisbane's best-kept secret, Rocklea is a quiet suburb in close proximity to the city with a variety of public transport options and quick access to North, South, East and Western freeways. Rocklea is definitely a suburb to watch in 2020, and for the next few years," the study said.
Spring Hill also possesses strong potential for growth. It has the highest yield in rental return for units in Brisbane at 6.9%.
"One of the oldest residential neighbourhoods in Brisbane, Spring Hill sits on the cusp of Brisbane CBD with ample cafes, restaurants, nightlife, parks and shops," the study said.
For buyers and investors looking for homes, Everton Park is the place to be. Around four in five dwellings in this suburb are detached homes.
"Everton Park is a family-friendly suburb roughly 25 minutes north of the city centre. This suburban lifestyle includes plenty of local cafes, parks, and a range of schools, making it ideal for young families looking to rent or buy,” Upside said.
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