A leading property advisor and consultant has compiled a list of Brisbane’s best and worst suburbs to invest in property.
PK Gupta, owner of Consulting by PK, said investment opportunities are still ripe in Brisbane but a strategic asset and careful suburb selection are key.
As an owner of four investment properties in Brisbane himself, Mr Gupta said Brisbane has more upside than Sydney or Melbourne when it comes to investment opportunities.
“At the beginning of 2021, you could throw a dart at a map of Brisbane map while
blindfolded and you would have hit a growth location.
“But things have changed. Now it’s not should I buy in Brisbane, but where and what should I buy,” he said.
Mr Gupta explained that some markets in Brisbane are still in the early stages of their growth cycle, offering investors an exciting long-term upside.
Brisbane’s best suburbs
1. Taigum (townhouses)
Located 13km north of Brisbane, the suburb of Taigum offers a range of residences from housing to townhouses and units.
According to Mr Gupta, there is a huge disparity between the price of townhouses and detached homes in the region, though he expects this gap to close in the medium term.
“House values have risen considerably in the past 12 months with the median price of
approximately $600,000 for a detached dwelling. In comparison, units and townhouses have a median of approximately $400,000.”
He added that the price of townhouses will likely rise due to their affordability factor, providing excellent value growth for investors over the coming year or so.
“Taigum has had a stigma as a low socio-economic area, but if you purchase the right kind of property this suburb will deliver excellent price-growth potential regardless.”
2. Northgate (townhouses)
Northgate is situated 8km north of Brisbane’s CBD and is easily accessible by major arterial roads, making the region the subject of gentrification.
“The demographic is shifting solidly away from blue-collar workers and toward upwardly mobile young professionals.”
PK Gupta, Owner of Consulting by PK
Mr Gupta said prospects for the area will continue to improve, with townhouses offering investors the greatest potential.
“The median townhouse price sits at $450,000 compared to detached houses at $1 million. Buyers are sure to recognise the excellent value townhouses offer relative to detached houses, and this gap will close rapidly.”
3. Clayfield (townhouses)
The already well-respected suburb of Clayfield is located within Brisbane’s inner suburbs and is expected to experience further housing demand in the near future.
“A huge driver here is schooling – specifically Clayfield College. The school has recently
moved from being an all-girls institution to co-education. It has an excellent reputation and there’s already been a spike in families moving to the area, keen to have their sons attend the school.”
Furthermore, Clayfield offers excellent accessibility, amenities, and lifestyle options for residents.
“Townhouses again offer the best prospects with a median price of $500,000 sure to attract both homebuyers and investors.”
Brisbane suburbs to avoid
1. Toowong (units)
Mr Gupta admits that as an inner-city western suburb with abundant amenities, Toowong may seem a controversial choice for a ‘Brisbane’s worst’ list.
However, the unit market is significantly oversupplied and likely won’t see any value growth, especially as the construction of more units is underway.
“Unit prices have only gone up 2.2 per cent in the past 12 months, while house prices rose 24.4 per cent during the same period. That speaks volumes about the demand/supply imbalance of units,” said Mr Gupta.
2. Burbank/Chandler (houses)
“These suburbs are positioned 13 kilometres southeast of the CBD and are dominated by low-density and acreage housing,” said Mr Gupta.
Mr Gupta said while these housing types were popular during the pandemic, the demand will not continue post-pandemic and he expects the annual capital growth rate to settle at around 5 to 7% over the long term.
“The slowdown is already underway. Rental yields are low at just two per cent and Days On Market have risen from 50 days to 100 days in just a few months.”
3. Woodridge (all property)
Located south of Brisbane, Woodridge is heavily dominated by tenants with around 65 to 70% of all households renting.
“This is fine when a rental boom is underway, but if measures are taken to ease the housing crisis, Woodridge will suffer greatly.”
PK Gupta, Owner of Consulting by PK
“As vacancies rise in the future, landlords will be competing against each other to attract tenants – and there will be a lot of property on the market,” he said.
As a result, Woodbridge’s prices can be expected to flatten or even soften in the medium to long term.
Article source: thepropertytribune.com.au
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