THEY are the hottest suburbs in Brisbane right now, and with the city poised to see significant growth in property values over the next three years, buyers may want to act fast.
Toowong, Windsor, Paddington, Greenslopes and New Farm were the most sought-after suburbs for buyers in the first six months of this year, with all of the top 10 most in-demand suburbs recording well above the city average for views per listing.
The findings come after BIS Oxford Economics released its Residential Property Prospects 2019-2022 earlier this week, which forecast that Brisbane would see 20 per cent growth in property values — almost double that of the nearest growth capitals Adelaide (11 per cent) and Canberra (10 per cent).
In contrast, the report predicted that Sydney and Melbourne — the two cities hardest hit by the property downturn — would likely see single digit growth over the same period.
REA chief economist Nerida Conisbee said increased demand for housing stock often preceded price growth.
“Demand is a good one to look at because high demand suburbs generally outperform the rest of the market,” she said.
“It shows where the market is right now, what buyers want and where they want to live.”
Toowong led the way with 3815 views per house listing — almost four times the Brisbane average of 1006.
It was followed closely by Windsor and Paddington, which recorded an average of 3702 and 3681 views per house listing over the same period.
Ms Conisbee said the inner ring — 5km or less from the CBD — was still a good short-term bet, with the middle and outer rings likely to lift as the recovery continued.
But she said buyers should look for a property that suited their needs now, rather than just focus on potential capital growth.
“Real estate is a long term game,” she said.
TOP 10 MOST IN-DEMAND SUBURBS (Houses)/
AVERAGE NUMBER OF LISTING VIEWS
1. Toowong — 3815
2. Windsor — 3702
3. Paddington — 3681
4. Greenslopes — 3646
5. New Farm — 3642
6. Wilston — 3526
7. Holland Park — 3469
8. Ashgrove — 3435
9. Camp Hill — 3407
10. Newmarket — 3400
(The average Brisbane house listing has 1006 views. Source: realestate.com.au)
All of the top 10 most in-demand suburbs for houses during the first six months of the year were in Brisbane’s inner and middle ring, or within 10km of the CBD.
For apartments, Holland Park led the pack with 1661 views per listing, according to realestate.com.au
It was followed by New Farm (1512) and Camp Hill (1450) — roughly three times the Brisbane apartment average of 554.
Other popular suburbs for apartment hunters were centred around education hubs (Mount Gravatt East) and lifestyle precincts (Paddington and Teneriffe).
Propertyology head of research Simon Pressley said Brisbane buyers, and those looking to make the move to the river city and southeast generally, should focus on properties close to key employment nodes if they hoped to see an increase in values.
“I would be looking at the suburbs that are still affordable … I would stay below $650,000,” he said.
“Affordability is the number one key ingredient for demand and competition (in the market) leads to price growth. Demand drives prices.”
McGrath head of auctions and Queensland state manager Justin Marsden said there were good opportunities for buyers, but buyers did not need to overcapitalise to see capital growth.
The realestate.com.au findings also looked at the suburbs and towns that were showing the greatest percentage increase in demand, with many of those areas undergoing new residential development or coming off a low base.
Top of the list was the Logan suburb of Belivah, which experienced a 201.5 per cent increase in demand over the past six months.
It jumped from 137 views to 276 views per property but was still substantially lower than the Brisbane average for house listing views (1006). Many of the houses currently on the market, new or existing, were around $200,000 less than the current Brisbane median house price of $535,000.
Flagstone, which is part of the Greater Flagstone Priority Development Area, saw demand for houses lift by 171.5 per cent, while Aratula, west of Boonah, recorded a 145.6 per cent uplift.
For apartments, Rochedale, Bardon and Kenmore had the biggest percentage increase in listing views.
But only five of the top 10 suburbs for demand uplift recorded listing views above the Brisbane average for apartments, which is 554.
Those suburbs that saw demand lift above that Brisbane average were Bardon, Kenmore, Robertson, Mount Gravatt East, Seven Hills and Dutton Park.
TOP 10 MOST IN-DEMAND SUBURBS (Units)/AVERAGE NUMBER OF LISTING VIEWS
1. Holland Park — 1661
2. New Farm — 1512
3. Camp Hill — 1450
4. Mount Gravatt East — 1334
5. Red Hill — 1330
6. Newmarket — 1279
7. Ashgrove — 1242
8. Paddington — 1200
9. Teneriffe — 1190
10. Enoggera — 1178
(The average Brisbane unit listing has 554 views. Source: realestate.com.au)
Ms Conisbee said demand would always be driven by proximity to employment, education and lifestyle nodes.
“Compared to Sydney and Melbourne, Brisbane remains affordable, but affordability is just one factor,” she said.
“Jobs are another factor, and part of the reason why Brisbane has taken off first in terms of the recovery.
“People are prepared to move to Brisbane because there are job opportunities, affordable housing and a great lifestyle.”
Madelaine Sharp-Doepel, 25, has signed a contract on a two-bedroom unit at Paddington, and plans to move in when the current tenants move out in September.
She said the unit, which was marketed by Ray White Paddington agent Glenys Austin, was the second property she had owned, having already renovated and sold a house at Wavell Heights.
“Paddington is a growth suburb and I am keen to do some work on it (the unit),” she said. “It also has a very good rental return which was part of my decision-making process.
“My plan is to live in it and then later hold on to it as an investment.”
Ian and Anna Morris have also bought a new home — a stunning four bedroom Queenslander in thriving Newmarket.
Mr Morris said they would be moving from a basic four bedder in Grafton, NSW, and had immediately sensed a buzz in Newmarket.
“It is a bigger house that has been renovated and the location is fantastic. It is close to the city, the shops, public transport and has a great vibe,” he said.
“We are from Melbourne originally but did not want to move back to that climate, and had lived in Queensland some years ago.
“We like the climate and the slower pace and were pleasantly surprised by what we could get for our money.”
Place Newmarket agent Mario Sultana said the suburb offered properties that appealed to all buyers, from first home buyers to prestige house hunters, all within 5km of the CBD.
He said proximity to good school catchments and amenities were drawcards.
“Compared to last year when there were 62 sales, there have only been seven registered sales so far this year,” he said. “There has been less stock available but demand creates competition and therefore price growth.”
Ray White Queensland CEO Tony Warland said Queensland “is truly the best place to be for value”, with options for the first homebuyer, the second homebuyer and those buyers seeking out luxury.
THE EXPERTS — Justin Marsden (McGrath), Tony Warland (Ray White), Damian Hacket (Place)
FIRST HOME BUYERS (UNDER $500,000)
JM: Suburbs that sometimes get overlooked but are in strong growth corridors are Thornside in Redland City, a waterside suburb which has older homes often in need of some renovation. On the city fringe you will find Acacia Ridge, Archerfield, Coopers Plains and Rocklea are having a resurgence, where there are a range of opportunities from already updated homes, renovators and subdividable properties.
TW: Mango Hill is perfect if you are looking for a newer home in an area with high infrastructure and good schools and shopping. It is one of the fast-growing areas by population in southeast Queensland. In the south, I like Beenleigh for the speed of its market. It has a lot of good affordable stock with opportunities for renovation. Birkdale in the east is a terrific established centre with plenty of good services and shopping, while in the west, Ipswich is my pick for first home buyers in all of SEQ as it’s a big city where you buy big classic Queenslanders and new homes under $500,000.
DH: In the south, Acacia Ridge is 15km from the CBD and this pocket is quickly evolving. It has great public transport, schools, is close to Garden City shopping centre and has reasonable house prices. In the north, it is Geebung, which is on the cusp of thriving suburbs, like Chermside and Aspley, and has easy access to Westfield Chermside, nice local parks and airport convenience. Murrarie in the east has homes undergoing a lot of renovations and has new cafes and lifestyle opportunities. Darra in the west has very affordable homes with high rental yields
JM: Buyers who are potentially upgrading or moving from interstate will often find they can get closer to the CBD, coastal beaches or waterfront. The Sunshine Coast is noticing that 70 per cent of the buyers searching for homes are from Sydney beachside suburbs which makes sense considering the vast difference in what $1 million buys you. In Greater Brisbane, suburbs close to the city continuing to deliver growth are Windsor, Wilston and Grange. On the Bayside, I like Ormiston through to Redland Bay, where buyers can find a property to suit almost all budgets.
TW: Aspley is perfect for family homes and it’s an easy lifestyle. In the south, Rochedale is great value for families, in a well-established community within very proximity to CBD via the freeway. In the west, you cannot go passed Ashgrove for its classic Queenslanders. It’s such a long-established suburb blue-chip Brisbane and there’s still good buying in this price bracket.
DH: Mount Gravatt East is a great suburb for raising children, with convenient and green local amenities. It’s close to two major shopping centres, the freeway and great local schools and is only 15 minutes to the CBD. In the north, Wavell Heights is family friendly with a rising number of renovated Queenslanders and new builds. Cannon Hill is on the fringe of Brisbane’s most popular inner-east suburbs, and offers similar lifestyle benefits to the high-end areas like Bulimba and Hawthorne, while also being affordable for families. Oxley in the west is leafy, green and quiet with post-war homes and a growing cafe culture.
JM: The luxury market is still performing well and continues to be popular, particularly in the river suburbs of Brisbane like Bulimba, Hawthorne and New Farm. They are land locked peninsula suburbs with village-type atmospheres that will continue to show strong growth and appeal to buyers for many years to come.
TW: Buyers looking for renovated classics and modern luxe cannot go past Alderley for its village vibe and tight knit community. Hands down, South Brisbane offers wonderful opportunity with a myriad of high quality property. It’s close to the CBD and always sought after for its lifestyle. East Brisbane is one of the fastest moving stock in all of Brisbane. It’s highly sought-after for post war-style property on very big large blocks and it’s got some great schools. In the west, everyone loves Toowong. It’s always been popular with prestige buyers from the river out to Kenmore. It’s only a short distance for professionals working in the city and has some of the best schools in Brisbane.
DH: Hendra in the north is reaping all the benefits of Ascot and Racecourse Road and is an up-and-coming suburb that is seeing an increase in renovations and multimillion-dollar new builds. In the south, Coorparoo is historically a very popular location with landmark properties. It is undergoing a resurgence in redevelopment, renovation and entertainment precincts like Coorparoo Square. Norman Park (east) has a large spread of housing with almost 3000 properties and a wide variety of style of homes. From post-war to homes on bigger blocks through to riverfront properties with city views. It is close to the CBD and, with infrastructure underway along Lytton Road, speed and access to the city will improve dramatically early next year when the upgrade is complete. Chelmer in the west offers riverfront opportunities, larger blocks and estates.