Logan catches attention as ‘hotspot’, but has the boom passed?
Queensland’s central Logan area has once again jumped onto the radar as a potential hotspot, with some developments apparently holding a waiting list for prospective tenants due to the low vacancy rate, and a generally low supply for new stock.
Marsden and Browns Plains, in Logan, with vacancy rates of sub-2%, have median prices around $300,000 and rents that can bring in up to $240 per week.
In our suburb spotlight on Logan late last year, Australian Property Monitors’ Andrew Wilson warned investors about this area.
"It’s always the ‘curse’ of the hotspot. By saying it’s a hotspot, there could be an overshoot of fundamentals. Gladstone was the flavour of the month, now the direction’s moving to Logan," Wilson said.
"Investors should beware of the ‘hotspot’. What goes up quickly comes down quickly as well," he warned.
Developments such as Mintt on MaCarthy in Marsen and The Promenade in Brown Plains (pictured below), are both said to have waiting lists with all currently built and sold properties fully occupied, according to official marketing material. The next stage of properties is apparently being rushed forward to meet demand, seeing rental rates rising above the median.
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Photo: The Promenade in Brown Plains
Urban Development Institute of Australia president (Gold Coast and Logan), David Ransom, said that the Logan corridor is often underestimated as a potential growth area in south-east Queensland.
"A lot of the focus is generally on Brisbane and the Gold Coast, but Logan has plenty to offer in its own right, with its position between two major markets, a growing economy and a solid pipeline of development - including the two new major cities of Yarrabilba and Greater Flagstone which will help cater for future population growth," Ransom said.
"The Logan region broadly has a lower median house price than its neighbouring cities, which makes it an attractive area for investors and young families looking for an affordable opportunity to position themselves at the centre of south-east Queensland's growth corridor."
However, this isn’t necessarily a brand new hotspot opportunity. Property Observer remembers discussions of Logan being the next area to buy, with some likening it to Sydney suburbs in Blacktown and around Mount Druitt for high yields.
In fact, in October 2012, Logan Central topped the list for the highest yielding units across Brisbane.
We also featured a debate about this area, with Right Property Group’s Victor Kumar calling Logan undervalued due to stigma, presenting good opportunities for buyers. Propertyology’s Simon Pressley, however, said that he does not invest there and considers it for more ‘unsophisticated’ investors.
The Promenade at Browns Plains has 120 three-bedroom townhouses, of which half have been completed and tenanted. The final release sees prices starting from $337,900.
Meawhile, Mintt on MaCarthy, in Marsden, has 20 completed and tenanted three-bedroom townhouses in stage one and 12 in stage two that are currently selling. These are priced from $336,900.
Both feature pools, barbecue areas, playgrounds and on-site managers.