The 13 suburbs which are most likely to deliver capital growth to investors in Queensland this year have been uncovered by a new report.
Six property experts and commentators have selected the 50 suburbs across the country which are primed to deliver investors the best returns in 2015 for Smart Property Investment’s annual Fast 50 report – with 13 hailing from Queensland.
This places the state second behind New South Wales, which accounted for 21 of the top 50 suburbs.
Five of the six experts on the panel – Louis Christopher (SQM Research), Margaret Lomas (Destiny Financial), Michael Fuller (Hotspotcentral), Sam Saggers (Positive Real Estate) and Todd Hunter (wHeregroup) – selected suburbs from Queensland as presenting good investment opportunities in the year ahead. Only Domain Group’s Doctor Andrew Wilson steered clear of selecting Queensland suburbs.
Logan Central in particular was highlighted for its investment prospects in the year ahead, with both Margaret Lomas and Louis Christopher selecting the area.
The region’s strong rental yields were highlighted as big drawcards, but Ms Lomas said capital growth was also imminent because of gentrification and an ongoing undersupply of housing.
Mr Christopher pointed to Logan Central’s steady and low vacancy rates and recommended investors target established houses.
According to CoreLogic RP Data’s latest figures, the median house price in Logan Central is $267,000 and gross rental yields sit at 6.2 per cent.
Todd Hunter also selected various suburbs across Queensland, and highlighted Morayfield and Caboolture South – approximately 50 kilometres north of the Brisbane CBD – for their growth potential in the year ahead.
According to Mr Hunter, these two neighbouring suburbs are set to benefit from North Lakes infrastructure, including a recently-opened business park tipped to “employ over 13,000 people” once completed.
“On top of this, a new train line is under construction, along with Bruce Highway upgrades. Combine that with great local employment opportunities and driving distance to Brisbane CBD by road or rail, and these will be the sneaky suburbs that benefit from all these offerings, but at a much cheaper price point,” he said.
The Fast 50 report also highlighted some inner-city suburbs which may not have finished their climb.
Sam Saggers said yield-hungry investors may be put off by softening rents in New Farm, but he believes capital growth is set to continue in the suburb.
He said new units would be the best buys for investors in New Farm in 2015.
Late in 2014, Scott McGeever of Property Searchers also tipped growth in the suburb, saying, “This area has been strong because of the lack of available land to develop. It is also well-serviced with amenities, parks and transport being a convenient distance to the Brisbane CBD.”
Another key suburb highlighted by the report was Broadbeach, with Mr Christopher saying this market – which was “smashed” during the 2010-2012 downturn – is now in recovery.
He said the Gold Coast suburb benefits from low vacancy rates and its desirable location away from the noise of the main drag of Surfers Paradise.
He cautioned investors to stay away from over-priced developments and said they should instead stick to established units with ocean views.
According to CoreLogic RP Data figures, Broadbeach units have a median price of $435,000 and offer a gross rental yield of 4.4 per cent.
The full list, including suburbs from New South Wales, Victoria, South Australia, Tasmania and Western Australia, is in this month’s edition of Smart Property Investment magazine – currently on newsstands.