Best investment suburbs in Brisbane for 2018

The affordability currently seen in the market marks the largest price gap between Brisbane and Sydney in the last two decades—an indication that Brisbane is primed for a cyclical growth curve.

Right Property Group’s Viktor Kumar explained: “Median house pricing between Sydney and Brisbane is traditionally about 26 per cent, but right now, we are sitting at around a 76 per cent differential because Sydney is over-inflated and Brisbane hasn’t had any major growth.”

“To bring that back to normality, which is the 26 per cent, there are two things that will happen. One, the Sydney and Melbourne prices will contract. Two, Brisbane will go through a natural growth curve, the same as which happens in every cycle,” he added.

NAB house price forecast said that dwelling values may increase by up to 1.9 per cent in 2018 and up to 2.0 per cent in 2019.

Meanwhile, median house prices may rise at 7 per cent to $590,000 by June 2020 while unit prices is most likely to remain flat within the same period.

Here are the Brisbane suburbs worth checking out this 2018:

Eastern suburbs

Some of the best suburbs in Brisbane for investors chasing growth can be found in the eastern markets, which saw a 16 per cent rise in the past three years.

These growth regions include:

• Highgate Hill, which has a recorded average annual price growth of 7.6 per cent in the last 10 years and an affordable median house price of $650,000;
• Gaythorne, which has grown by 7.4 per cent every year and enjoys a median house price of $798,500;
• Pallara, which experienced a 38.5 per cent price growth in the last 12 months, and;
• Nudgee, which saw a 7.7 per cent annual growth in the past decade;

Near-CBD suburbs

Units and townhouses in the suburbs within 15km of the Brisbane central business district may cost as little as $500,000 to $550,000.

These affordable ‘entry-level’ prices make way for first-home buyers seeking to enter an established market.

Some of the suburbs to look into are Tingalpa, Geebung and Keperra, which are all within 10km of the CBD

Moreover, the area in and around 60 minutes north of Brisbane CBD is also set up for significant growth this year, according to Mr Kumar.

This is primarily due to the infrastructure in the region that influences the property market, including the Petrie University and the Caboolture Base Hospital.

Middle-ring suburbs

Affordability and infrastructure are also the main growth drivers in the middle-ring suburbs of Brisbane.

Renters are coming in flocks to these suburbs, thereby pushing vacancy rates down from 3.4 per cent to 2.1 per cent.

The middle-ring suburbs primed for growth include:

• Kedron, which has already seen solid growth over the past quarter largely due to the infrastructure surrounding the area, including high-quality high schools and primary schools, shopping centres at Lutwyche and Chermside, funky bars and pubs in Nundah and the Airport Link tunnel.
• Boondall and Bracken Ridge, which are among the top choices for families and investors looking for affordability.
• Carindale and Mount Gravatt, which are home to good infrastructure, including shopping centres and strong public transport network, as well as employment hubs.
• Chermside West, that benefits from the infrastructure present in the ‘mini CBD’ Chermside close by while maintaining its livability for young families.
• Keperra, that is in close proximity to a train line—a feature that will be one of its major growth drivers as Brisbane’s population continue to grow.
• Wynnum, a bayside suburb that offers good-sized land for entry-level prices. It has also seen big auction results recently and enjoyed the benefits of a train line close by.

According to Mr Kumar: “Where you can still get a decent house for $400,000, where say 10 years down the track you can knock it down and put a duplex.”

“There aren’t many other states in Australia that you can say that you can confidently do that within a 15 minute travel distance to the CBD,” he highlighted.

Inner-city suburbs

If you are looking to purchase a primary place of residence, Brisbane’s inner-city suburbs may be a good option primarily due to the impressive infrastructure surrounding the area.

 Among the suburbs worth checking out are Paddington, Ascot, Clayfield, New Farm and Wooloowin.

Should you decide to turn your home into a wealth-creation asset, these suburbs may also offer a relatively good return on investment because of the slowdown of apartment approval and consistent population growth.

This information has been sourced from Business Insider, OpenAgent, Domain, Real Estate Institute of Queensland and Metropole.