New research has pinpointed the top suburbs to keep an eye on in Brisbane as they are set for strong price growth.
Data from Your Property Your Wealth has isolated five suburbs, three northside and two southside, that it expects will go from strength to strength over the years to come.
The areas were identified because they had capital growth prospects and superior gross rental returns, Your Property Your Wealth director Daniel Walsh said.
“There is no denying that Brisbane is on the radar of savvy investors, with properties in many of these locations starting to already sell quite quickly,” he said.
“However, not every suburb is a sound investment prospect, and especially if an investor is from interstate and is not familiar with the Sunshine State capital’s property market.”
Brisbane’s affordability has attracted investors from outside the region because of the attractive rental returns.
“As a comparison, Sydney investors are likely struggling with negative cash flow every week because yields there are just 2.8 per cent for houses and 3.6 per cent for housings, according to CoreLogic,” Mr Walsh said.
“In Brisbane, investors are earning yields that southern investors can only dream about — at 4.3 per cent for houses and 5.3 per cent for units.
“We’ve been buying in select Brisbane suburbs for a few years now, with many properties in positive cash flow or neutral territory from the outset as well as capital growth prospects to sweeten the outlook as well.”
The top five suburbs Mr Walsh believes should be on the radar in the Queensland capital are Bracken Ridge, Brighton and Petrie on Brisbane’s northside, and Springwood and Runcorn in the south.
Each of these suburbs had a median house price below Brisbane’s and is in a growing area.
“On top of that, there are a number of major infrastructure projects that are set to further increase buyer demand in affordable property corridors such as these five,” Mr Walsh said.
“One of the most significant is construction of a new university campus in Petrie, which is due to open next year.
“Petrie has also benefited from the new Moreton Bay Rail Link, which was first recommended more than 100 years ago and finally opened in 2017.”
Savvy home buyers and investors have noticed the price and locations of property in Bracken Ridge, as it is only 18 kilometres north of the Brisbane CBD.
It will also benefit from the proposed upgrades to the Gateway Motorway, making it more accessible for commuters, Mr Walsh said.