Brisbane’s Most Investible Suburbs

In much the same way as Melbourne’s million dollar suburbs have changed over the years, Brisbane’s landscape has also changed. According to figures from The National Property Research Co. the number of million dollar sales in Brisbane has more than trebled over the last ten years, despite the interruption of the Global Financial Crisis. Some previously lagging suburbs have shot up the rankings, with lifestyle and infrastructure considerations high on the list of buyer priorities.

Rising Stars

Traditional prestigious locations haven’t been replaced, but they have been caught by some surprising newcomers to the prestigious list. Suburbs such as Paddington and Bulimba are now outstripping previous front-runners like Ascot and Hamilton in the million dollar sales stakes. This doesn’t mean that buyers are turning their backs on the old names, simply that the wealth is spreading and new developments are encouraging new money to enter the market.

Suburbs are being transformed under city plans, with previously highly industrialised areas being transformed into vibrant residential hotspots. This is bumping prices up, as much as the effect of greater confidence in the local economy.

However, there are some traditional factors that buyers and residents seem keen to keep: six of the top ten million dollar Brisbane suburbs have river frontage and streets lined with long-established trees.

New buyer preferences

It’s clear that million dollar home buyers are also looking for more than they did ten years ago. Proximity to the CBD used to be everything when it came to a prestige property purchase. Now, with transport into the CBD so improved, proximity is playing second fiddle to lifestyle elements.

New developments and suburb refurbishments are concentrating not only on quality construction, but more importantly on ‘village living’. Coffee shops, restaurants, cafes, and specialised boutiques are high on the home buyer’s wish list today.

Buying into the next million dollar suburbs

Despite the number of rising stars, the median price in the million dollar bracket hasn’t budged over the last six years. However, this might be about to change as the market is benefitting form a number of positive factors:

  • Record low interest rates are certainly underpinning prices
  • The rising Brisbane population will pump extra demand for Brisbane property
  • Investors, long on the stock market, are seeking diversification into property
  • Healthy average rental yields around 4% and low vacancy rates

There are, of course, factors that might prove to be a drag on prices, though these are mostly global – Middle East problems and EU economic uncertainty among them – but on a localised basis Brisbane property looks more solid than Australia’s other capital cities. Indeed, analysis from BIS Shrapnel predicts that property prices in Brisbane will increase by 17% over the next three years.

It’s likely, then, that the price stagnation we’ve seen in the median price of million dollar properties is about to crack, and values jump. The recent rise in the numbers of sales above a million dollars could be a forerunner of improving prices.

If you’re a serious investor who is looking for the next million dollar suburb, it’s worth looking at recent history and the way in which the million dollar suburbs are spreading. Brisbane has a great forward-looking infrastructure plan, and this is going to lead to a continual upgrade of transportation links. Suburbs further away from the CBD will become increasingly attractive as they are redeveloped.

When investigating investment potential, look for suburbs that offer the amenities that a resident desires; and don’t forget about the attraction of those leafy streets. The proximity of the CBD is only limited by the availability of transportation links: location now equals lifestyle, and is not inhibited by closeness to work. If you would like help finding the next million dollar suburb, take a look at our Investors’ Room or contact us today.