The capital shows promising and affordable prospects for investors, while Noosa’s star continues its ascent
Good things appear to be on the horizon for Brisbane. While property price growth has been slow over the past few years, this city still shows the most potential for growth in the next three years.
“Property is relatively affordable in Brisbane compared to the other east coast capital cities,” says Kate Forbes, national director of property strategy at Metropole Property Strategists. “Over the past five years, median prices have grown by 16.1%, while household incomes have increased 9.2%. Throughout the 10 years to June 2018, prices have increased by 24.1%, while household income growth has been stronger, at 31.3%.”
Brisbane is also fortunate to have not experienced the same crushing prices associated with Sydney and Melbourne. According to Philippe Brach, CEO of Multifocus Properties, while houses close to the city are in the $700k–$750k range, decent houses can still be found within 50 minutes of the city for below $550k.
“The Northern Suburbs are quite good,” says Brach. “There’s a new university coming up in Petrie. Redcliffe is a nice area, North Lakes is a nice area – there are some good investments to be had that are growing nicely in capital because you’re so close to the centre, but also offer some yields that are better than if you’re closer to the city.”
Long known as a retirement hotspot, Noosa is also emerging as a strong prospect for investors. According to a September 2018 report by the Real Estate Institute of Queensland’s (REIQ’s) Market Monitor, Noosa saw the strongest growth in the state, with its median house price growing 6.9% over the 12 months to June, and units growing 10.2%.
The Gold Coast is already the biggest apartment market in Queensland, thanks in no small part to its popularity with both holidaymakers and retirees. “There is limited housing supply being added to Noosa, and competition is obviously driving price growth,” says REIQ CEO Antonia Mercorella.
Indeed, the potential is there for further growth into the future, once the ongoing developments are completed.
“Looking forward, once the Bruce Highway upgrades are completed and commuting to Brisbane becomes more feasible, it’s likely we’ll see added demand for Sunshine Coast living,” Mercorella says.
SUBURB TO WATCH
ARUNDEL: Quiet appeal keeps growth steady
The Gold Coast is well known throughout Australia as a tourist hotspot perfect for family-friendly vacations. But there’s more to it than that. Tucked away on its outskirts is Arundel, a quiet suburban neighbourhood that’s ideal for retirees or those looking for a home in the suburbs within commuting distance from the CBD.
Growth in the last 12 months has been comparatively slow, but over the past five years house prices rose by more than 26% and unit prices by almost 25%. Both property types also offer strong rental yields of 4.7% for houses and 6% for units.
Amenities: Nearby Arundel Hills Country Club has its own golf course
Population: The suburb has a population of 10,246 according to the 2016 census