Boasting 280 days of sunshine a year, a charming vibe, and a city that combines both the culture of Melbourne with the beach benefits of Sydney, what’s not to love about the sun-soaked capital of Queensland? Brisbane is routinely ranked as one of the best cities in the world to live in, which makes it a hot destination for home-hunters and an attractive prospect for investors. As Australia’s third most populated city, plenty of opportunities still exist for investors that are willing to put in a bit of groundwork. Here’s what you need to know about getting on board with the Brisbane boom.
Why is Brisbane booming?
Brisbanites enjoy an enviable lifestyle, and it has grown in appeal as ‘bigger city’ dwellers have begun to question their commutes and costs of living. But sunshine-state lifestyle aside, here’s what is making Brisbane such a hot investment:
- It’s shaking off its ‘country town’ feel – spending on infrastructure in Southeast Queensland is at an all-time high, with more than $25 billion budgeted to be spent before 2031. In Brisbane specifically, the Queens Wharf Precinct is a $3.6 billion project that is transforming the waterfront with 5 new hotels, 50 restaurants, bars, cafes, 3 residential towers, a world-class casino, and a new pedestrian bridge linking to South Brisbane.
- The 2032 Brisbane Olympics – predicted to inject $18 billion worth of economic and social benefits, the Olympics will also see a billion-dollar overhaul of the Gabba stadium.
- Accessibility – as the closest eastern seaboard capital city to Asia, Brisbane has direct access to some of the world’s fastest-growing markets. Additionally, Brisbane’s location means it can operate across three time zones – Asia, America, and Europe – making it an attractive prospect for trade and investment.
- Housing affordability – for the cost of an average home within 10km of the Brisbane CBD, investors would need to look 30-40km outside of Sydney or Melbourne for something comparable. And with a median house price of just over $400,000, securing an investment property within easy reach of the CBD is attainable.
- The COVID factor – Queensland has and continues to see a boom in new residents as work becomes increasingly decoupled from specific locations. While Sydney and Melbourne have been shedding residents, Brisbane was one of only three capital cities in 2021 to record net population gains. This is a trend that is not predicted to slow any time soon.
Seeking out Brisbane’s hotspots
With Brisbane evolving at a rapid pace, buying in the right inner-city pocket now could potentially place investors in a similar position as those clever investors that purchased in central Melbourne and Sydney 20-30 years ago. With economists forecasting Brisbane prices to surge a further 20% between 2022 and 2023 alone, it’s likely to be one of the best-performing markets locally.
So where are these pockets of opportunity? Based on median rent increases, median house prices and population growth, here are five postcodes worth checking out:
- Yeronga – just a stone’s throw (8km) south of Brisbane, and with its entire western border fronting the Brisbane River, Yeronga has a lot going for it. While it does have a hefty median house price of around $1.2 million, this is growing significantly year on year as is the population.
- Stafford – with gentrification well and truly underway, Stafford is attracting young families and couples that value living within easy striking distance of the CBD and decent section sizes. The current median sale price sits just over $800,000, which represents a whopping 26% increase year on year.
- Taringa – while it’s no property investor bargain with median house prices around the $1.3 million mark, having the University of Queensland and Queensland University of Technology on your doorstep means it’s a suburb that promises stability from an investment perspective.
- Holland Park – with plenty of amenities close by, this southside suburb has experienced strong growth over the last few years. With median house prices of $900,000, it’s units in Holland Park that have the strongest rental yield and could present an attractive opportunity for investors.
- Wilston – with strong rail and Northern Busway links, Wilston is primed to take advantage of the ongoing Brisbane Airport expansion. Wilston is gentrifying quickly, with larger, modern houses replacing older cottages as it experiences population growth. The median house sale price has increased over 22% year on year
Get prepped before you invest…
Start by exploring equity in your existing home – in short, equity is the difference between the market value of your home and the balance of your mortgage. If you’re in the fortunate position to have built up equity (by paying down your mortgage, through capital gains, or a bit of both), your lender can advise you how much usable equity you have available to invest. While you’ll need to speak to your lender to get a bank valuation on your property, your local First National Real Estate office can provide an indicative market valuation to get the ball rolling.
Understand the local area – Brisbane has been the victim of several major floods over the last century, and while they may only come along every 20-30 years, this must be on your radar. Outside of major floods, overland flow from stormwater runoff is even more common. It pays to keep away from low-lying areas and sloping sections and ensure you do your due diligence.
Understand what prospective tenants want – Brisbane is a laidback city so it’s valuable to understand what’s important to locals when choosing an investment property. For example, air conditioning is much more of a priority in Brisbane, as is avoiding homes with west-facing living areas that get scorched by the afternoon sun. Breezy hilltop homes are popular, as are homes in good school catchment areas. It’s a family-focused city, so schooling is often a huge consideration for renters.
If it’s your first time investing, this Guide for First Time Investors is packed with plenty of practical tips and First National Real Estate is always on hand to share our local knowledge and expertise.
Please note the information provided here is general in nature and should not constitute legal, financial, or professional advice.