Twenty suburbs have been named Brisbane’s growth stars with values set to rise off a surge in housing demand – and seven also performed strongly for the apartment sector, the latest industry survey has found.
The Spring Price Predictor Index – released by analysis firm Hotspotting today, saw Brisbane’s North named one of the top 10 growth zones in the country, alongside the Sunshine Coast, Sydney’s Northern Beaches, Bendigo in Victoria and Belconnen in Canberra.
The prospects were so good for Brisbane’s north, it was the only part of the Queensland capital with “no declining or danger markets”, the index report said.
“The Brisbane North precinct is the most active part of the Brisbane market, which is poised for stronger growth.”
Alderley, Algester, Annerley, Arana Hills, Banyo, Bardon, Birkdale, Bracken Ridge, Kedron, Murrumba Downs, Norman Park, Ormiston, Paddington, Petrie, Rochedale, Sandstone Point, Stafford Heights, Taringa, Tarragindi and Warner were declared star performers for houses.
Rising market were ones “where sales activity is increasing, which is generally a precursor to prices increasing”, a Hotspotting spokeswoman told The Courier-Mail.
“Rising markets are good places to buy. Plateau markets are the ones where sales volumes have settled down but there is still potential for price growth. Decline and danger markets are the ones to avoid.”
Half of the Brisbane suburbs with growth trajectories were either in Brisbane North (the middle market north of the river) or the nearby Moreton Bay Region.
Five suburbs had growing sales activity in Brisbane’s north, including the likes of Bracken Ridge, “where quarterly sales have been 79-89-91-95 in the past year”. Thirteen were seeing steady and consistent sales demand.
Good annual price growth had already begun in some parts of the precinct, including Northgate (up 16 per cent), Geebung (up 7 per cent) and Nudgee (up 8 per cent), while Moreton Bay region was seeing values jump in Scarborough (up 9 per cent) and Woody Point (up 11 per cent).
The much maligned apartment sector was also seeing some good growth out of seven suburbs, including bluechips like Queensland’s most expensive suburb Teneriffe, and millionaire zone Paddington. Alderley, Annerley, Kedron, Norman Park and university suburb Taringa were all star unit risers.
Hotspotting head Terry Ryder flagged five “danger” markets in Brisbane – where prices were in decline, sales activity had dropped sharply and vacancies were marked as high. Just one of those five – Fig Tree Pocket – was for houses, while the other four Albion, Bowen Hills, Fortitude Valley and Spring Hill all concerned unit market activity.
The “decline” markets category showed “locations where the previous price growth will cease and in some cases prices may fall”.
“We felt there needed to be a stage between “plateau” markets (those where sales activity has passed its peak but settled at solid levels below the peak) and “danger” markets (those where sales activity has dropped sharply, prices are falling and vacancies are high).”
“The “decline” markets are those which have passed their peaks, but sales levels have not plateaued – they have continued to decline markedly, with demand falling steadily.”
Real estate agent Narelle Lorensen of Place Nundah said Brisbane’s northside was a growth area with demand across multiple suburbs.
“There are a lot of active buyers in the market and not really enough listings to service them all in Brisbane’s northside,” she said.
“Brisbane is certainly very good value. It’s a wonder we’re not seeing a lot more investors given the value is so good compared to southern states. Our rentals have picked up in value. In previous years rent had been quite low but there has been some recovery in rental value, now that sales picking up again that might even out.”
She said places like Bracken Ridge were high growth areas, attracting a lot of first homebuyers especially because of the affordability of houses there.
Siana and John Wicks were among homeowners looking to capitalise, putting their house at 121 Hoyland Street, Bracken Ridge, on the market for $470,000 – which is less than the Greater Brisbane median.
“Once we put a price on it, buyers starting coming through … We’ve been here eight years. We bought it off John’s parents who had it since 1992, so basically John has lived here all his life almost,” Mrs Wicks said. “We hope to have sold it by Christmas.”
“We have bought (a 3,000sq m block) at Elimbah near Caboolture, we’re building a house. We do love this area but just to get the space we need we do have to move out a bit. We wouldn’t really be moving otherwise.”