Find out which Brisbane suburbs made the top 10 list in Canstar's second annual Australian property market Rising Stars report, produced by Hotspotting.
The Brisbane market is believed to be in the doldrums, but in-depth analysis shows that the Brisbane market is currently stronger than general media rhetoric.
After being a leading growth market nationwide in 2021, the Brisbane market experienced a general decline in early 2022, affected by major weather events and state government laws that deterred investors.
However, the slowdown was not felt in all markets: Greater Brisbane's affordable outer ring areas and suburban residential suburbs continued to provide strong demand from buyers.
Over the next 12 months, Brisbane is expected to experience growth fueled by internal migration and large infrastructure projects, with the 2032 Olympics set to be a beacon for investment.
The elephant in the room was the new one.property tax policycausing investors to shy away from Queensland even though they didn't plan to launch until mid-2023. But after mounting criticism of the policy, including from other state governments, Queensland Premier Annastacia Palaszczuk announced she would scrap the move. .
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Top 10 Brisbane suburbs to invest in
- Anneley (units)
- deception bay
- eastern heights
- Eden Landing
- Kangaroo Point (units)
- redbank plains
- West End (units)
The common trait of the markets that populate our Brisbane top 10 are average prices below $600,000. This is in line with national trends where affordable areas with good amenities and lifestyle features continue to attract strong buyer demand.
Brisbane may have struggled as a market in the first half of 2022, but the future for the city's growing suburbs is bright.
Research shows that suburbs close to major sporting venues get the biggest boost from the Olympics, giving Annerley a good location close to the Gabba. It also offers easy access to one of Brisbane's largest hospitals, the University of Queensland, the Pacific Highway and the local rail network. Homes are getting more expensive, but the units (with a median price of $460,000) are an affordable option.
This is a major suburb in the far north of Brisbane. It's not trendy, but it always attracts buyer demand because it has the basic infrastructure and affordability that many people care about most. The low vacancy rate, currently just 0.3%, and the high rate of capital growth (one of the best in Brisbane, averaging 8% per year for the last 10 years) show that seemingly boring locations and daily may perform better.
This northern suburb offers excellent value for money: three schools, many recreational facilities including a golf course, easy access to Bruce Highway and a train stop from the new Sunshine Coast University campus. This explains a price growth of 30% in one year and a very low vacancy rate of 0.4% currently. Despite the recent increase, the median home price remains below $600,000.
This seedy bayside suburb is losing its dreary image, which is being torn apart by the Moreton Bay Marine Park and the proposed North Lakes community. While the general market in Brisbane has calmed down, sales activity here continues to pick up and prices have responded, with annual growth among the highest in Brisbane. With a vacancy rate of 0.4%, rents increased 15% last year.
Logan City has been one of the stars of Brisbane's stellar growth over 2020-2021 and although Brisbane as a whole has slowed down a bit since early 2022, between the Gold Coast and central Brisbane, Logan City still attracts plenty of buyers. For Eagleby, convenience, good basic amenities and affordability are an attractive combination, even if the suburb isn't. The intersection of the Pacific and Logan highways is nearby.
The Ipswich City market has grown rapidly in the last two years and remains one of the most dynamic in the region, due to its affordability, good infrastructure and a variety of areas of employment. Eastern Heights continues to attract increased demand from buyers due to its proximity to Ipswich CBD amenities, schools and parks. The vacancy rate is extremely low (0.4%), rents have increased by more than 20% in the last year, and yields are above average.
This suburb is a must for buyers on a budget: solid homes, green space, train station, schools, proximity to services and amenities in neighboring Beenleigh, midway between Brisbane CBD and Surfers Paradise. Buyer demand continues to rise, and prices have reacted of late, with the median home price recently topping $500,000. The low availabilities caused a 20% increase in rents.
Kangaroo Point (units)
This riverside suburb on the edge of the business district and adjacent to Woolloongabba (site of the main stadium for the 2032 Olympics) is ideal for one of the emerging real estate trends: the search for affordable housing in lifestyle venues. Not surprisingly, sales activity is trending here. Typical units cost around $500,000, which is attractive for a location close to downtown amenities.
Sales volumes in this established Battle suburb have skyrocketed in the past two years and prices are responding while remaining affordable. It offers an affordable alternative to the neighboring Masterplan community of Springfield. There are several school options and the Redbank Plains Recreation Reserve is a plus.
West End (units)
The South Brisbane region has become one of Australia's premier inner-city lifestyle areas: performing arts complexes, art galleries, museums, a variety of excellent restaurants and riverside parks. The market is no longer affected by an oversupply of apartments. In a market that favors affordable and well-located housing, this market is growing at a time when Brisbane as a whole is struggling. The median unit price is $565,000 and the rental yield is around 4.2%.
Top 10 Brisbane suburbs to invest in
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|In the place||average price||1-growth||10-year average annual growth (% pa)||vacancy rate||average rental return||startup costs*||20% deposit||Monthly payments (P&I) with 80% LVR|
|Annerley (U)||US$460,000||10,4%||3,0 %||0,2 %||4,2 %||8.866$||92.000$||2.032$|
|Dakbin||US$595,000||31,1%||5,1%||0,4 %||4,0 %||14.690$||US$119,000||2.628$|
|deception bay||US$540,000||35,5%||6,8%||0,4 %||3,8%||11.980$||US$108,000||2.386$|
|Eagleby||US$420,000||28,2%||5,5 %||0,4 %||4,5%||7.309$||84.000$||1.855$|
|eastern heights||US$395,000||17,2%||4,0 %||0,4 %||4,8%||6.356$||79.000$||1.745$|
|Eden Landing||US$520,000||26,8%||4,7%||0,4 %||4,0 %||11.201$||US$104,000||2.297$|
|Kangaroo Point (U)||US$560,000||7,7%||2,4%||0,9%||4,5%||12.958$||US$112,000||2.474$|
|redbank plains||US$435,000||31,8%||4,8%||0,4 %||4,5%||7.912$||87.000$||1.922$|
|Far West (U)||US$565,000||4,6%||1,0 %||1,1%||4,2 %||13.222$||US$113,000||2.496$|
Sources: Median Price, Growth and Rental Yield - CoreLogic data from yourinvestmentpropertymag.com.au as of 1 Aug 2022. Vacancy Rates - SQM Research as of Sep 2022. Start Up Costs - canstar.com.au as of 7 Oct 2022. Mortgage Loan Payment Details: canstar .com.au as of 7 Nov 2022. U stands for Units. *Initial costs include stamp duty, mortgage registration and transfer costs. Stamp duty based on the acquisition of an existing home that is not the original purchaser or owner. The initial cost does not take into account other costs, including the transfer of the lender or mortgage insurance. ^Monthly payments are based on median home price loan amount less applicable deposit amount, average variable interest rate, and monthly principal and interest payments over a total 30-year loan term. Interest rates are based on the average owner-occupant, principal, and floating rate on a $500,000 loan as of November 7, 2022, at 80% LVR (5.25%).
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