10 Suburbs Set For Growth In South East Queensland…Current State Of The Brisbane Market

10 Suburbs Set For Growth In South East Queensland…Current State Of The Brisbane Market

It’s no secret that South East Queensland is set to become one of Australia’s hottest markets over the next couple of years.

With the extreme growth in Sydney and Melbourne, over the last 3 years the affordability of the Brisbane market is attracting a wave of interstate investors. What isn’t so widely reported is the surge in motivated locals and first homebuyers who are beginning to capitalise on the affordability of the Brisbane and South East Queensland market.

According to Residex, the Brisbane housing market as a whole has increased by 3% in the past year, and is predicted to grow 3% p.a. over the next 5 years and 6% p.a. over the next 8 years.

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These numbers aren’t as crazy as the growth figures seen in Sydney and Melbourne over the last two years. But they represent good steady growth, and are healthy figures to justify purchasing an investment in Brisbane and its surrounds.

So where should I be looking if I want to invest in South East Queensland?

As a general rule of thumb, buy within 20km of any CBD for the greatest capital growth potential.

If your buying in Brisbane aim to be within 15km of the CBD.

If your buying in the Sunshine Coast aim to be within 10km of the Sunshine Coast University, Birtinya hospital and Maroochydore CBD.

If your buying in the Gold Coast aim to be within 10km of Surfers Paradise.

Remember to do your due diligence on every suburb you are interested in buying in.

Common mistakes people make when selecting a suburb.

Its imperative that you know what you are trying to achieve from your investment before you even begin to look at suburbs.

Do you want to achieve capital growth over the long term? Cash flow from passive income? Or build and develop for short-term gains?

Need help understanding what it is you want to gain from investing in the South East Queensland Market?

Once you know exactly what it is you’re looking for, you can then begin to narrow down your search.

We’ve analysed the data from a variety of sources, including Residex and Your Investment Property Magazine, and have created a list of 10 suburbs set for growth in South East Queensland.

1.    Beerwah

Distance to Brisbane = 74.8km / 36km to Sunshine Coast

Predicted 5 year growth = 5% p.a.

Predicted 8 year growth = 7% p.a.

Rental yield = 5.01%

2.    Ningi

Distance to Brisbane = 60.2 km

Predicted 5 year growth = 10% p.a.

Predicted 8 year growth = 9% p.a.

Rental yield = 4.39%

3.    Oxenford

Distance to Brisbane = 59.8km

Predicted 5 year growth = 4% p.a.

Predicted 8 year growth = 6% p.a.

Rental yield = 5.04%

4.    Deception bay

Distance to Brisbane = 36.5km

Predicted 5 year growth = 3% p.a.

Predicted 8 year growth = 6% p.a.

Rental yield = 5.20%

5.    Kallangur

Distance to Brisbane = 30km

Predicted 5 year growth = 3% p.a.

Predicted 8 year growth = 5% p.a.

Rental yield = 5.61%

6.    Griffin

Distance to Brisbane = 28.2km

Predicted 5 year growth = 7% p.a.

Predicted 8 year growth = 8% p.a.

Rental yield = 4.90%

7.    Woody Point

Distance to Brisbane = 24km

Predicted 5 year growth = 6% p.a.

Predicted 8 year growth = 9% p.a.

Rental yield = 4.18%

8.    Sandgate

Distance to Brisbane = 22.5km

Predicted 5 year growth = 8% p.a.

Predicted 8 year growth = 10% p.a.

Rental yield = 4.12%

9.    Acacia Ridge

Distance to Brisbane = 15km

Predicted 5 year growth = 3% p.a.

Predicted 8 year growth = 6% p.a.

Rental yield = 5.13%

10.Ferny Hills

Distance to Brisbane = 15km

Predicted 5 year growth = 3% p.a.

Predicted 8 year growth = 6% p.a.

Rental yield = 4.88%

15 free tools to help with your property investment research…

Its also always important to take note of the rental yield. As you are aware you want to be as close to neutrally geared as possible.

Before committing to purchasing an investment property in a particular area you should conduct extensive research.

One key indicator that is going to predict the future performance of a particular suburb is the median house prices of the neighbouring suburbs. Focus on buying property that is in a suburb where the median house price is $50,000-$100,000 cheaper than it’s neighbouring suburb, for no apparent reason. This can be an indication that the area is going to grow, simply because the performance of the surrounding areas is so strong.

Not only should you take into consideration the predicted growth figures, you should also consider a number of other aspects of the suburb that are going to impact the current and future value of your investment including:

·       Distance to major city

·       Population

·       Average annual price growth

·       Price growth over the last 3 years

·       Average price growth over the last 12 months

·       Predicted price growth over the next 5 years

·       Predicted price growth over the next 8 years

·       Medium house price

·       Medium rent

·       Average rental yield

·       Rental vacancy rate

·       Number of houses sold in the last 12 months

·       Average number of days on market

·       Average vendor discounting

·       Supply and demand (according to realestate.com)

·       How do the locals rate the suburb as a place to live

·       Demographics

·       Number of schools

·       Major shopping centres

·       Public transport options

Tips to make sure you invest in the right property and the right suburb.

 

The information contained in this article is for general information purposes only and should not be regarded as a substitute for professional legal, financial or real estate advice. The information is provided by Pumped On Property and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained in this article for any purpose. Because every persons needs and financial situations are different, the information in this article are intended as a guide only. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this article or which may be suffered by any recipient through relying on anything contained in or omitted from this article.

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Kristal Everingham

About

Kristal Everingham is a Property Acquisition Manager at Pumped On Property. Her mission is to show you how to replace your income through property investing so you can do what you love…full time.

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