Brisbane Metro house sales rise over 20 per cent: PRD
From 2018 and 2019/20 the number of houses sold in Brisbane Metro grew by 20.9 per cent, according to PRD's Affordable and Liveable Property Guide Brisbane 1st Half 2020.
Affordable and liveable house suburbs are those with a maximum property sale price of the Queensland average home loan plus 75 per cent premium. In the 1st half of 2020, 113 suburbs exist within this price range which is an improvement compared with the previous 91 suburbs identified in the 2nd Half 2019 report.
The most affordable and liveable house suburbs include:
| Approx. radius from the Brisbane CBD | Median House Price | 2 Bed Median Price | 3 Bed Median Price | 4+ Bed Median Price | |
| Griffin | 19.2km | $465,000 | N/A | $431,000 | $471,000 |
| Everton Park | 10.8km | $614,000 | $540,000 | $595,000 | 705,000 |
| Virginia | 14km | $625,000 | $511,500 | $581,250 | $760,000 |
The most affordable and liveable unit suburbs include:
| Approx. radius from the Brisbane CBD | Median House Price | 2 Bed Median Price | 3+ Bed Median Price | |
| Geebung | 12.4km | $392,000 | $243,500 | $392,500 |
| Arana Hills | 12km | $395,000 | $341,000 | $402,000 |
| Daisy Hill | 20km | $411,000 | $224,950 | $435,000 |
Though Queensland's home loan affordability has slightly declined, with the proportion of income to meet home loan repayments increasing by 2.7 per cent in the 12 months to Q1 2020, first home buyer loan activity increased by 20.8 per cent in the same period, indicative of an effective government first home buyer incentive programme.
Brisbane Metro's number of houses sold has grown by 20.9 per cent. In correlation, during this time median house prices increased by 1.5 per cent, to $690,000. On the other hand, the number of units sold increased by 13.9 per cent, however the median unit price softened by -1.5 per cent to $450,000. These figures indicate unique opportunities in Brisbane Metro.
House owners can be more confident of their property value, as real capital growth has transpired, whereas unit buyers can capitalise on a more affordable market.
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Brisbane Metro sales and median price growth. Source: PRD.
Brisbane has conducive investment conditions, with attractive house (3.7 per cent) and unit (5.3 per cent) rental yields. A declining vacancy rate, currently at its lowest of 2.8 per cent in April 2020 suggests a healthier rental demand. A total of $12.2 billion worth of project developments is in the pipeline in the 1st half of 2020, which will have positive a spill-over impact on the property market.
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Brisbane rental market analysis. Source: PRD.
Over Q1 2020, the Brisbane Metro rental market recorded a median rental price of $390 per week for houses and $405 per week for units, representing quarterly median price growth of 0.0 per cent for houses and 4.1 per cent for units.
The top three lowest priced suburbs are Ellen Grove whose 2019/20 median price is $277,500, Woodridge ($282,500) and GOODNA ($286,000). Ellen Grove has a project development value of $1.1 million, and 2019/20 Median Rent of $330 with a 4.2 per cent rental yield. Woodridge has a $640,000 value in project development, and 2019/20 Median Rent of $310 with a 5.5 per cent rental yield, while GOODNA has a project development value over half of that ($300,000). Its 2019/20 Median Rent of $330 is on par with Ellen Grove, but records a higher rental yield of 4.6 per cent.
In contrast the top three highest priced suburbs are Teneriffe (whose median price 2019/20 is $1.85 million) with a project development value of $22.2 million, New Farm ($1.8 million) with $11 million and Hamilton ($1.525 million) with $478.1 million.
Greater Brisbane is set to see approx. $12.1 billion worth of new projects commencing in the 1st half of 2020.
A key focus on mixed-use projects is ideal for Greater Brisbane, as it will create both new housing design options as well as commercial opportunities. This will stimulate economic growth and create local jobs, whilst also addressing an increase in housing demand in certain suburbs.
A key project is the Waterlea Master Plan Development at Walloon ($350.0M). This project is set to construct 1,500 homes in 8 neighbourhoods including recreational activity spaces and cafés. A key residential project is Carver’s Reach ($23.0M, 472 lots).
