With the pandemic having more of an impact on New South Wales and Victoria, many households flocked to the relatively unscathed Queensland, taking advantage of beach lifestyles amid the shift to working from home.
ANZ forecasted in November Brisbane would see house price growth of almost 10% in 2021, while SQM Research forecasted growth of 3-8%, based on several different scenarios.
Meanwhile, Domain analysis recently revealed that for the first time in five years, it was more expensive to rent a unit in Brisbane than in Melbourne.
Note: This article is for 2021. Check out our top Brisbane suburbs tipped for growth in 2022.
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Principal of Hugo Alexander Property Group, Adam Nobel, said the driving forces of capital growth in Brisbane this year would be migration, education, and affordability.
“By that, I mean the places I would buy are where demand is extremely strong due to a sought-after catchment area and community for the Asian demographic,” Mr Nobel told Savings.com.au.
“Post covid, employment will also be a major boost to Brisbane’s capital growth and I have no doubt Brisbane will continue to rise.
“Right now the supply of housing is still very tight which is another force creating the increase in prices.”
So where in Brisbane are property prices going to see big growth in 2021? We asked the experts for their picks:
Brisbane suburbs tipped for growth in 2021:
Mansfield
Chief economist at PRD Real Estate, Dr Diaswati Mardiasmo, said excellent education facilities, low listings, and an affordable price tag made Mansfield an attractive suburb to buy in.
“Mansfield is renowned for being the home of Mansfield State School and Mansfield State High School, which are considered to be top schools in Brisbane,” Dr Diaswati told Savings.com.au.
“It is surprisingly affordable with a median house price of $710,000, just under the Brisbane median house price.
“The number of properties available for sale in Mansfield, particularly within the school catchments, are not as high as other suburbs, making it a highly coveted area.”
Indooroopilly
Dr Diaswati said Indooroopilly was an inner CBD suburb known for its lifestyle, entertainment, and multiculturalism, making it an ideal place to buy or invest.
“Many parts of Indooroopilly are still very green and leafy with old-style Queenslander houses, near open green spaces, that are very family-friendly.
“Indooroopilly Shopping Centre, Indooroopilly train station and bus exchange, and a multitude of bars, cafes, and restaurants provide residents with the lifestyle, entertainment, and ease of transport.
“The suburb is an ideal place for students of the Queensland University of Technology and the University of Queensland.
“Multiculturalism is celebrated daily in Indooroopilly, with many international students residing there. It is within easy access for Brisbane Boys College and a variety of top State schools.”
Moorooka
Moorooka has grown in popularity in recent years, and Dr Diaswati said the suburb provided affordable, larger blocks, not regularly seen in other suburbs.
“Located approximately 19kms from the Brisbane CBD, Moorooka is an upcoming suburb that has gained popularity over the past five years, due to the increasing retail development around the area.
“It is a suburb that has been gentrified yet still affordable at a median house price of $685,000.
“Properties in Moorooka are more often than not set in larger blocks of land, older in style, which creates perfect opportunities for those looking to renovate and/or subdivide.”
Logan Central
Although slightly out of the Brisbane local government area (LGA), Dr Diaswati said the suburb was well placed, being right in the middle of Brisbane and the Gold Coast.
“Logan Central’s extremely low median house price of $290,000 makes it a suburb highly affordable for those who are working in either LGAs and need to commute.
“The image of Logan Central has evolved and gentrified over the past years, to one that is more business and industry-focused, yet still family-friendly.
“Many of the houses are older in style, which invites renovators and first home buyers to create their dream home.
“Approximately $1 billion worth of project development is scheduled for 2021, which will further establish the infrastructure and commercial aspects of the area. Now is the time to capitalise on this opportunity.”
Mt Gravatt
Dr Diaswati said Mt Gravatt was a lifestyle and education hub, with an affordable price tag that would make it attractive to families.
“Mt Gravatt has a median house price of $670,000, which is below the Brisbane LGA median house price of $725,000, making it more affordable for many families.
“Westfield Garden City sits at the heart of Mt Gravatt, a hub of everyday shopping needs and entertainment.
“Griffith University is nearby, making the area attractive for local university students.
“Queen Elizabeth II Jubilee hospital is easily accessible, as well as the many eateries of Sunnybank, which makes the area quite popular for those looking for a suburb that has much to offer.”
Director and Founder of Aus Property Professionals, Lloyd Edge, echoed Dr Diaswati’s sentiments and said Mt Gravatt was becoming a major hub on the south side of Brisbane.
“There is a range of education institutions, cafe culture, and quite large houses and blocks of land. Moving forward from the pandemic I believe people will be looking for more space and the housing in Mount Gravatt provides this,” Mr Edge told Savings.com.au.
“There are also some good public transport options for those that need it. I like the walkability to cafes though which will help the growth in an undervalued suburb.”
Chermside West
Mr Edge said Chermside West had huge potential this year, given its proximity to amenities and strong growth in the past few years.
“It’s 12km from the Brisbane CBD and has seen a high level of gentrification over recent years which augers well for some growth this year as the markets really heat up.
“It has two hospitals and also is right near Chermside which has seen some solid growth. I think Chermside West will benefit from the ripple effect for growth as it is a bridesmaid suburb.
“Chermside has experienced growth of over 30% over the past 5 years and I see this moving onto Chermside West.”
Stafford and Everton Park
Although slightly further from the CBD, a shorter journey to the coast and larger blocks mean Stafford and Everton Park will take off this year, according to Mr Edge.
“They have good proximity and easy transport options to both the city and Moreton Bay as well as to the Sunshine Coast.
“These are cheaper suburbs to buy in than the eastern suburbs or city and again I believe people will be looking for something a little further out with a bit more space.”
Wishart
Mr Nobel said Wishart was seeing huge demand, with proximity to high-end schools and amenities driving prices up.
“Wishart is in the Mansfield High catchment area, which has excellent academic results, sporting and arts programs, “ Mr Nobel said.
“There is huge demand from wealthy Asians moving into the area, exactly like what has happened in West End, Highgate Hill, and South Brisbane, and this demand will push prices up.
“We are starting to see old houses knocked down and new, more expensive builds go up.
“There is also a seventh-day Adventist church and college that many church members and students like to walk to. This has also kept demand strong.
“There is an established capital benchmark of many homes over $1.5 million, yet you can also get a house on a large block from $750,000.”
Woolloongabba
Mr Nobel said Woolloongabba was going to have an enormous amount of infrastructure in coming years, which meant 2021 may be the year to buy before it was too late.
“Only 2km from the CBD, with the new Cross River Rail and restaurant precinct coming in, this will definitely push prices up in Woolloongabba.
“This will also have a positive impact on its cheaper neighbour in Greenslopes. Greenslopes also benefits from employment demand with the hospital.”
Hemmant
A train station, great schools, affordability, and lifestyle, meant Hemmant was one of the places to buy in Brisbane, according to Mr Nobel.
“In Hemmant, you can buy brand new houses with enormous depreciation benefits and positive cash flow.
“It also provides a high quality of life, being close to Wynnum and Manly, yet closer to the city, and is cheaper than both these suburbs.
“New housing projects are pushing up values as people are building nice homes. I would buy here, given there is very strong rental demand yet no stock.”
Photo by Jesse Collins on Unsplash
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