By Rich Harvey, CEO & Founder, propertybuyer.com.au
Ask any Australian property expert worth their salt and they’ll tell you – there’s no such thing as a single Australian property market. The nation’s residential sector is a patchwork quilt of submarkets with variances across suburbs, price points and property types.
And all too often the best-known suburbs that get the coverage. They have profile and are easy to promote – particularly to people who are from ‘out of town’. But experts who endorse just a few recognised addresses as typical of an entire city’s real estate performance are, frankly, being a bit lazy.
If you speak to a real insider – a local with on-the-ground expertise – they’ll provide a more nuanced view. These specialists can identify locations that get little attention but provide excellent potential for long-term capital growth and a decent rent return.
In this, our first in a three-part series, we’re going to unearth those under-the-radar opportunities with our own local experts.
In Brisbane, Glen Sainsbury is our man on the spot. He’s revealed his choice locations and property types offering excellent prospects for buyers.
Springwood (houses)
Springwood sits 20 kilometres south of the CBD on the Bruce Highway. It’s a firm favourite with commuters and families.
Springwood is also major commercial hub. Substantial shopping options, office accommodation, terrific entertainment and desirable lifestyle facilities all abound. There’s great education choices and other services all within easy reach too.
In addition, there’s the nearby light industrial outlets and warehouse retail just across the highway in Slacks Creek. This includes high-end car dealerships, and even an Ikea.
Springwood housing delivers plenty of property options. Realestate.com.au data shows the median house price is $580,100 and median rent sits at $470 per week which reflects a very handy 4.2 per cent gross yield.
And housing is diverse with everything from grand family estates to modest renovators, so all budgets are catered for.
Springwood if full of potential, and the smart money is beginning to take notice.
Salisbury (Houses)
Salisbury is another Brisbane suburb that hasn’t received nearly enough attention. Positioned 8.5 kilometres south of the CBD and offering some wonderfully diverse housing options, it remains a bit of a mystery to many Brisbane buyers – particularly those north of the river.
There are a range of retail services and facilities throughout Salisbury and nearby Moorooka. Salisbury Train Station makes for a fast journey to town, or south to the Gold Coast, and there’s easy bus access to employment and amenity hubs throughout Brisbane’s southside.
Salisbury is bordered by arterial roads, but this has an upside. The suburb itself only sees local traffic, and this has created a rare residential oasis in the area.
Salisbury also benefits from easy access to QEII hospital and Griffith University. The suburb itself has two sought after private schools and a public school that’s charging up the Naplan ladder.
Detached housing is your best option here. The median house price is $670,000 and median rent sits at $450 per week. That’s a 3.4 per cent gross yield – not huge, but certainly better than what most other interstate investors are achieving in their capital cities.
Salisbury has probably had a reputation with Brisbanites as being a bit ‘working-class’, but those opinions are founded in ancient history. Modern day Salisbury delivers beautiful pre- and post-war homes on big allotments which are prime for family buyers.
The suburb is also undergoing gentrification. Large blocks with older homes are being snapped up for renovation or subdivision. In addition, new-builds on small blocks are selling well and starting to nudge closer to the $1 million mark for good quality homes.
Bracken Ridge (Houses)
Bracken Ridge makes our list as the northern suburb most consistently underrated.
Positioned 16 kilometres north of the CBD, Bracken Ridges is again well catered for in terms of services and facilities. The area is full of parks, convenience and large-format retail, and professional services.
It’s the very family nature of this suburb that’s perhaps most appealing. Childcare and schools – both private and public – are all within the suburb’s boundaries. It also has ready access to the Bruce Highway north which connects through to the Sunshine Coast, and Bald Hills Train Station sits just outside Bracken Ridge’s boundaries.
Housing here is, again, reasonably diverse. There’s plenty of good size family lots with established, solid properties – some with excellent views. There are also numerous small estates where lowset brick and tile dwellings make for good low-maintenance investment.
The median house price is $585,000 and median rent is $480 per week reflecting a solid 4.3 per cent rental yield.
Brisbane City (Apartments)
Not long ago you’d have been pilloried by local property professionals for suggesting Brisbane apartments were an attractive investment opportunity.
A solid building boom throughout 2013 to 2017 delivered and extraordinary oversupply of unit stock to the inner-city. The pipeline of apartments was set to stretch for years.
But here’s the things about supply and demand – it’s cyclical. Oversupply saw developers shelve projects. While prices for finished apartments plummeted, they’ve now pretty much stabilised.
If you choose the right style of property in today’s market, you can expect to buy a good size, owner-occupier apartment at a bottom-of-the-cycle price. This is an excellent example as to why having a local professional look after you interests is essential. Not all apartments are created equal. Choosing the right asset is critical and this can only be effectively assessed by an experienced Brisbane-based experts with a keen eye for the growth fundamentals.
So, while the statistics show the median unit price in Brisbane’s CBD is $550,500 and rent sits at $468 per week, our buyers’ agent suggests smart purchasers will look to spend a little more on a quality apartment.
Morningside (Townhomes)
Morningside is a fantastic suburb full of great property fundamentals.
Located just five kilometres directly east of the CBD and with a section of river frontage, Morningside feeds off the highly desirable Bulimba/Balmoral/Hawthorne peninsula. Bulimba’s café strip is legendary in Brisbane, and the amount parklands plus excellent quality of school options are bringing families to this area in their droves.
While most property has good capital-growth potential in Morningside, Glen said the type of holding he’d look for is a townhome. This is townhouse style attached housing that has its own direct street access and may even sit on its own titled allotment. Townhomes are an excellent compromise between houses and townhouses.
Going under the radar could see you purchase some of the best real estate Brisbane has to offer. Just make sure you don’t go it alone. Having a local buyers’ agents represent your interests means you can purchase with confidence.
To have one of our friendly Buyers' Agent's contact you, click here to:
or
call us on 1300 655 615 today.
