If you were shocked by the property price growth in 2020, 2021 must have you absolutely gobsmacked. Across Australia, house prices have risen by upwards of 22% - the third fastest rate in Australian history - according to research from REA Group.
But in Brisbane, house prices have risen almost 24% over the past year (including the Gold Coast region), according to CoreLogic data. Being relatively unaffected by lockdowns and restrictions when compared to its east coast counterparts (Sydney and Melbourne), many city dwellers have flocked to Brisbane to escape ‘the big two’.
As we all come out of our lockdown lifestyles and resume life as normal, will house prices continue to rise in the Sunshine State’s capital? Here are a few suburbs tipped as ones to watch into next year by property experts.
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Suburbs to watch in 2022:
Simon Pressley, Propertyology’s Head of Research, said the last decade was ‘incredibly underwhelming' for the third largest city’s property market - with the median house price only rising 3% annually and apartment values ‘not moving at all' - but that ‘now is Brisbane’s time to shine’.
“Low interest rates, lots of extra cash reserves in mortgage offset accounts and improved buyer confidence has released years of pent-up demand,” Mr Pressley told Savings.com.au.
“And with only 20,506 dwellings listed for sale (compared to 31,101 this time two-years ago), the pressure on Brisbane asset values is now as intense as 2003, when Brisbane saw 30% growth.”
Annerley
Peter Koulizos, Master of Property Program Director at The University of Adelaide, named Annerley as a ‘relatively affordable suburb’ close to the city and on the south side of the Brisbane River.
“It is adjacent to the prime riverside suburb of Yeronga,” he told Savings.com.au.
“The hive of activity in adjacent Woolloongabba due to the preparations for the Brisbane Olympics will have a positive ripple effect on this suburb.
“Annerley is set for long term above average capital growth due to the high proportion of period-style homes and its proximity to facilities and amenities.”
The current median house price to buy a house in Annerley is $885,750 according to realestate.com.au.
Woolloongabba
Woolloongabba has been the hot pick for many since the announcement of the 2032 Olympic Games. Home to the Gabba, which will be undergoing a billion-dollar revamp in preparation for the games, this suburb has been named the ‘best investment spot’ according to research by ME Bank.
In this research, ME Bank analysed factors like “how new transport infrastructure would re-shape the investment landscape across the range of suburbs, average rental yields, recent population growth, median house prices, average rental prices together with lifestyle appeal measurables such as the availability of coffee shops and cafes” and compiled a top 20 list of suburbs to invest in for 2022.
Topping the list emerged Woolloongabba, based on all of these factors and more. Mr Koulizos said the CBD, hospitals and medical centres within the vicinity are attractive to people who want to live close to their work.
“The new amenities and facilities to be built in readiness for the Brisbane Olympics will drive property prices in this suburb for many years to come,” he said.
The current median house price in Woolloongabba is $915,000 according to realestate.com.au.
Fairfield
Going back to ME Bank’s research, Fairfield was named as number 20 on the top 20 list - another suburb close to Yeronga - which is relatively close to the city and Brisbane river (roughly 5 kilometres).
The suburb has ‘ripple effects’ from people that want the benefits of living in Yeronga but ‘can’t afford it' according to Mr Koulizos. For example, Fairfield residents can use the amenities of its neighbouring suburb while being in close proximity to the CBD and prestigious University of Queensland.
The current median house price is just over $1 million according to realestate.com.au.
Birkdale
Located 18 kilometres from the heart of Brisbane, Birkdale was named a suburb to watch by Dr Diaswati Mardiasmo, chief economist at PRD.
“Birkdale offers a great coastal lifestyle with close proximity to public transport, shopping centres (Capalaba shopping centre), schools (Redlands College), medical centres (Redland hospital) and parks,” Dr Mardiasmo told Savings.com.au.
With a median house price of $720,000 in the September quarter of 2021, this suburb sits below Brisbane Metro’s median price of $825,000 according to Dr Mardiasmo. The suburb technically isn’t part of Brisbane but is part of the City of Redland.
Oxley
Another added to the list by Dr Mardiasmo was Oxley - approximately 11 kilometres from Brisbane CBD - which recorded a median house price of $695,000 from the last quarter.
“The suburb is located within close proximity to public transport, shops (Indooroopilly shopping centre), medical centres (Canossa private hospital) and education precincts (University of Queensland),” Dr Mardiasmo said.
“Oxley offers an affordable price point for first home buyers; however, buyers are encouraged to do their due diligence as some areas of Oxley are prone to flooding.”
Bracken Ridge
On the north side this time, Bracken Ridge is located 16 kilometres from the city with a median house price of $624,000 for the September quarter.
“First home buyers are encouraged to take this opportunity to enter the market as the suburb median price is well below Brisbane Metro’s of $825,000,” Dr Mardiasmo told Savings.com.au.
“Bracken Ridge ticks the right boxes in terms of large project development expenditure of $30.0M in the second half of 2021, which will create local employment opportunities.”
Tingalpa
Only 10 kilometres from the CBD, Tingalpa offers an ‘attractive' median house price of $670,000.
“Tingalpa offers an attractive lifestyle being situated between Brisbane and the Redlands coastal precinct,” Dr Mardiasmo said.
“The suburb offers a great family suburb with close proximity to a major shopping centre (Westfield Carindale) schools (Brisbane Bayside State College), local medical centres, public transport and parks.”
Algester
Algester sits well-below Brisbane’s median house price - $590,000 in the September quarter - making it an ‘affordable’ first home buyer destination.
“Algester is a friendly family suburb that offers great affordability that is fundamental to wellbeing,” Dr Mardiasmo told Savings.com.au.
“It is in a smaller pocket between Sunnybank Hills, Calamvale, and Sunnybank; all of which have recorded a median house price higher than the Brisbane Metro.”
Wavell Heights - Kedron
On Brisbane’s northside sits Wavell Heights and its neighbouring suburb Kedron - both within Brisbane’s ‘middle-ring suburbs'. According to Mr Pressley, these suburbs five to 12 kilometres out of the city will produce the ‘strongest’ rates of growth over the next few years.
“Pockets like Kedron and Wavell Heights in the northern suburbs…will be solid performers for years to come,” Mr Pressley told Savings.com.au.
With this input from Mr Pressley, for transparency’s sake, he also said he finds references to suburbs ‘highly misleading’ because the data at a suburb level is ‘not worth a pinch of salt’.
“In a practical sense, a suburb is nothing more than an imaginary line on a map,” he said.
The median house price in Wavell Heights is currently $915,000, and Kedron’s median house price is $943,500 according to realestate.com.au.
Bray Park - Strathpine
For those with a ‘smaller budget', Mr Pressley recommends buying in Bray Park or Strathpine. Though technically not within the Brisbane City Council - falling under the Moreton Bay Region - both suburbs are easily accessible by train or car to Brisbane’s CBD.
Currently the median house price for Bray Park is $518,000 and $495,000 for Strathpine.
Holland Park - Mount Gravatt
Mr Pressley also added that suburbs like Holland Park and Mount Gravatt on the south side - which also sit within the ‘middle ring suburbs' mentioned above - will be ‘solid performers’ for years to come.
“There’s plenty of gentrification being conducted by existing home owners,” he told Savings.com.au.
The current median house price for Holland Park is $916,000, and the current median house price in Mount Gravatt is $793,500 according to realestate.com.au’s data.
Michael Yardney, CEO of Metropole Property Group, added that Mount Gravatt has ‘ticked all the boxes for a long time’, and that the upcoming Brisbane Metro will be the ‘icing on the cake’.
Stafford
Mr Yardney said Stafford has often been thought of as the ‘poor cousin’ to its neighbouring suburbs, but it has become ‘highly desirable’ for owner occupiers that have been priced out of the other inner-city ring suburbs.
“The more elevated pockets of this suburb are fast becoming highly sought after for the outlook and potential city views,” he said.
“Also with no character restrictions in place many are attracted by the knock down rebuild option inner city suburbs may not offer.”
The median house price in Stafford is currently $860,750 according to realestate.com.au.
Chermside West
Mr Yardney said this suburb has been ‘a bit of a sleeper’ as many opt for its popular neighbour - Chermside - but that Chermside West is ‘starting to gentrify’.
“(It) has an abundance of green space, is close to two major hospitals and has the highly desirable Craigslea School catchment,” he said.
He said it’s a great place to live without all the traffic of Chermside - which is home to shopping centre Westfield Chermside - and currently has a median house price of $731,250 according to realestate.com.au.
Image by Vladimir Haltakov on Unsplash
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