By Rich Harvey, CEO & Founder, propertybuyer.com.au
This week, the median dwelling price in Brisbane officially overtook Melbourne’s after an extraordinary few years of market activity, which is something many thought would never happen.
Home values in the Queensland capital have now surged by an eye-watering 50 percent since the onset of Covid on the back of a booming population, limited supply and strong demand.
And yes, while that’s dwelling value, as in houses and units combined, Brisbane’s apartment market is roaring along nicely. In fact, the gap between the price of a unit in Melbourne and one in Brisbane has narrowed considerably in recent times, with the Victorian capital ahead by less than $50,000.
Not bad for a sleepy city that people used to write off.
Those still stuck with that antiquated mindset risk missing out on huge long-term potential – especially in the unit market, where eagle-eyed investors are turning their attention in a big way.
But to truly understand the nuances of a market, you must be immersed in it daily. Fortunately, Propertybuyer has a local team in Brisbane led by specialist Glen Sainsbury. Glen and the team have immense knowledge about the Brisbane market is extraordinary, so I took some time to have a chat with him about where there’s potential for property purchasers.
Here are five suburbs I’ll have my eye on in the year ahead after conferring with Glen.
Spring Hill
This former ugly duckling right next to the CBD is well and truly embracing its swan phase, with a steady transformation casting Spring Hill in a new light.
It’s obviously extremely convenient, being a short walk from the city, right next to Roma Street Parklands, and down the road from uber trendy Fortitude Valley and New Farm.
A wide range of people call Spring Hill home, from students and young professionals to families and retirees. It’s a melting pot of ages and cultures.
Spring Hill has a range of dwelling options to suit. There are older style units with enormous floorplans and plenty of potential to add value, modern apartments with a range of amenities, and even charming character homes that are almost as old as Brisbane itself.
This suburb used to be pretty quiet after 5pm. Quiet is probably putting it politely – it was dead. But gentrification has breathed new life into Spring Hill and it’s sleepy no more, with a vibrant after-dark vibe emerging.
Given its affordable median unit price of just $460,000, increasing popularity, and imminent benefits flowing from major projects, like the nearby Victoria Park precinct and an indoor stadium for the Olympic Games that’s been likened to Maddison Square Garden, Spring Hill is one to put on your radar.
Kangaroo Point
There’s a lot to love about this picturesque pocket just a stone’s throw to the east of the CBD on the other side of the Brisbane River.
For one, there’s the fantastic location, being on a peninsula surrounded by water and famed for its tree-lined streets and breathtaking views. Despite being right in the thick of it, Kangaroo Point feels like an oasis, with a distinct village lifestyle and even its own sandy river beach.
Secondly, there’s a long list of amenities that are desired among a range of would-be residents, from top schools and lush parks for parents to entertainment hubs like the Story Bridge Hotel for young professional and even proximity to a uni campus for students.
But thirdly, and most excitingly, there’s the new Green Bridge coming, which will make a 15-minute walk a five minute one that’s lined with bars, cafes and restaurants. On top of that, it will essentially turn Kangaroo Point into an extension of the city.
And not just the CBD, but the Paris End of Brisbane’s central hub, home to an array of award-winning and chic restaurants and bars.
Have I mentioned the price? Despite everything it already has going for it and the huge potential on the horizon, the median unit value is a very reasonable $590,000.
South Brisbane
It hasn’t been the best year in terms of market performance for this centrally located suburb, just over the river to the south of the CBD.
A massive influx of supply over recent times has seen price growth constrained, but it’s kept apartments affordable, and bargain-hunters have responded with gusto. A lot of that supply is being rapidly absorbed by first-home buyers and investors, keen to secure a quality apartment at a reasonable price, locking in a good long-term upside.
Those unfamiliar with Brisbane might not immediately appreciate all South Brisbane has to offer. The location is exceptional, nestled between South Bank and its world-class entertainment, as well as bohemian-style and very hip West End with its unique character and fantastic restaurants and bars.
Excellent public transport links make getting anywhere a breeze, whether it’s within Brisbane or down to the Gold Coast and surrounds.
Parents are flocking here in droves given the suburb falls within the Brisbane State High School catchment. Ask any local with a kid what they think of that place. It’s a very, very good school with a great reputation.
Diversity is key here. There’s a hospital, a good boutique commercial footprint, incredible lifestyle amenities, and even room for ongoing urban renewal.
All those strong fundamentals are made even rosier with a median unit price of $546,500.
Fortitude Valley
This part of the inner-city used to have a bit of a reputation as a wild party pocket, seen as being something like Brisbane’s version of Kings Cross, only more laidback.
But like “The Cross”, Fortitude Valley has grown up and evolved, but unlike its Sydney counterpart, it hasn’t lost its unique appeal as the entertainment capital of the city.
There are still plenty of bars, but you’re more likely to find an upmarket vino-lover’s paradise that’d be right at home in Melbourne than you are some seedy playboy’s den. The Valley has become sophisticated but is still very cool.
Just ask those who flock to the James Street precinct to shop, drink, dine and socialise. As well as countless awarded eateries and watering holes and high-end boutiques, it’s home to world renowned hotel, The Calile.
Like all trendy neighbourhoods, the uber chic lives in harmony with the older-style amenities of the Valley, like the eclectic mall and pumping nightclubs beloved by 20-somethings. That’s what makes this place special – it can be two things at once and offer the best of both worlds.
As a result, young professionals love it here and the rental market has boomed, with a remarkable 6.81 per cent yield on offer to investors. Whether a brand-new apartment ripped straight from the pages of a design magazine or a humble old unit with room for improvement, properties here are snapped up pretty quickly when they come up for lease.
That makes it an intriguing prospect for investors – as does its $445,000 median unit price.
Beenleigh
South of the city a little less than halfway to the Gold Coast is the pocket of Beenleigh, which is one of the most affordable apartment locations in a thriving area.
Given its position, travel to the capital to the north or the Glitter Strip to the south is a breeze thanks to fantastic public transport links and proximity to the motorway.
But really, Beenleigh is increasingly the place to be, with its own mini-CBD rapidly developing as density grows. There’s been a lot of activity in the commercial and retail development space, lifting local amenity and giving the place a buzz of excitement.
The demographic is diverse, ranging from young professionals to families, and there are a range of dwelling types on offer, from daggy old units with good bones through to contemporary apartments with all the bells and whistles a discerning tenant might want.
The local dining scene is becoming something of a drawcard, with a melting pot of cultural cuisine options to explore.
Great public and private schools are accessible, as are several convenient local and nearby shopping options.
Those restricted by budget should keep Beenleigh in mind. Prices here leapt by more than seven per cent last year, but the median unit value remains enticingly cheap at just $315,000.
Things to keep in mind
To outsiders, Brisbane might seem like a big town more than a city, but don’t be fooled – this thriving hub is huge, diverse and wide-ranging.
As a result, it’s important to know your intended market and examine every aspect of it to ensure it's fit for purpose. A unit in Fortitude Valley and a unit in Beenleigh might as well be worlds apart and it’s crucial you understand why.
Similarly, it’s worth getting to know not just a suburb but also its many and varied apartment buildings. What looks like a bargain might be concealing some serious maintenance problems or other long-running issues that prove frustrating at best and very costly at worse.
And keep in mind that Brisbane is undergoing a once-in-a-generation transformation, thanks in large part of the Olympic Games, with countless infrastructure projects underway. Not all parts of Brisbane will benefit, though. But some will fundamentally change for the better – and you could get in now before the upswing takes place.
Working with an experienced buyer’s agent can help you identify the best possible opportunities on offer... and not just in our five pick suburbs. There are pockets and prices to suit all investors and a buyer’s agent who’s on the ground, day in, day out, is best placed to help you find them.
Buyer’s agents, like our man Glen Sainsbury, can help you discover not just where to buy, but what to buy, working to compliment your investment strategy and long-term goals.
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