When it comes to property investment in Australia Brisbane is the third finest city that comes to our mind as an investor after Sydney(Link to Sydney article) and Melbourne(Link to Melbourne article). Brisbane is undoubtedly one of Australia’s fastest growing and top performing cities. Brisbane apartment values didn’t rise much in previous year, yet there is a good scope of growth and opportunities for upcoming years. Property investment isn’t an easy peasy task. It takes a lot of intel and research to make the right decision. If invested smartly(Link to smart property investment) in the right location and at the right time, property investment can earn you good income.
We understand that after your decision of investment in Brisbane, now you are looking for suggestions as to which suburbs can be best for your Property Income Investment. We will enlist a few suggestions based on our research and intel that may be helpful to you. Before we jump on that part, let’s first understand – Why Brisbane is a good choice for your Property Investment Income in 2021. Let’s roll in!
WHY INVEST IN BRISBANE PROPERTIES IN 2021
Investing in Brisbane can be an ideal decision for future high income from Property investment. The following pointers may help you understand why we say so :
- Outstanding demand for detached houses in inner and middle suburbs of Brisbane has led to overall 5.3% growth amongst the last 3 months.
- Brisbane is relatively affordable and has low interest rates.
- According to propertyupdate.com.au – The recent announcement of Brisbane winning the 2032 Olympic games will underpin strong infrastructure growth, economic growth and population growth over the next decade.
- Brisbane houses within 5km to 7km of Brisbane CBD have shown strong overall growth rate this year.
- Brisbane’s rental vacancy rate fell to 1.5% last month from a high rate of 10% in Covid crisis according to SQM Research.
- The inner and relatively expensive suburbs are showing great performance in terms of property investments as they foster high income residents.
- The increasing population in Brisbane is also adding up to the forecast of increasing values of property in Brisbane in 2021 and 2022.
These are just a few reasons that we have stated, there can be more advantages as well. With the pandemic settling a little, Brisbane is recovering very well and the prices of properties are estimated to rise in upcoming months hence, this is one of the best times to invest in Brisbane’s real estate market. Now that we have a little hint of why right now can be a wonderful time to invest in Brisbane, let us understand which suburbs can be worth considering in Brisbane.
We have accommodated the list of suburbs herewith but by no means it is a final ranking or something. We have stated some parameters like median prices, median rent, average annual growth rate, gross rental yields etc. You may decide which suburb suits best based on your purpose of investment be it be long-term or short-term growth, positive cash flow or high rental yields etc. Kindly mark that these are just suggestions based on our research, we strongly recommend you to get a face to face consultation with an expert advisor to understand what works best according to your needs and budget. This being said, let’s roll into the list.
BEST SUBURBS FOR PROPERTY INVESTMENT IN BRISBANE FOR 2021
[1] Ascot:
Ascot is North-Eastern suburb of Brisbane City located 6.5 km from Brisbane GPO with a population of 5,777 people. Ascot is popular for its beautiful old homes, the picturesque Poinciana tree lined shopping area of Racecourse Road, and for the Eagle Farm and Doomben racecourses popular for racing carnivals.
Ascot’s Median Sale Price for houses is $1,650,000 and for units is $472,000 with an Average Annual Growth Rate of 5.23% and 1.52% for houses and units respectively. The Median Rent per Week for Ascot’s houses as reported by CoreLogic is $888 and for units is $400 with Gross Rental Yields of 2.80% for houses and 4.41% for units accordingly.
[2] New Farm:
New Farm is a green lavish inner northern riverside suburb of Brisbane located just 2 km to Brisbane GPO. New Farm has become one of the most desirable and expensive suburbs of Brisbane due to its gentrification. New Farm has a strong demand for detached houses and it fosters an impressive mix of apartments, units, duplex, 19th and 20th Century houses as well.
New Farm has recorded Median sale prices for houses and units at $1,925,000 and $600,000 respectively with Average Annual Growth Rate of 5.40% for houses and 1.51% for units. The Median Rent per week shown by New Farm for houses is $750 and for units is $415 depicting Gross Rental yields of 2.03% for houses and 3.60% for units.
[3] Hamilton:
Hamilton is an affluent riverside suburb located in north east of Brisbane and 3.4 km from Brisbane GPO. Hamilton is a Wealthy suburb of Brisbane, it has recorded the highest mean taxable income in 2013 in Queensland. The suburb of Hamilton is best known for Kingsford Smith Drive to the Brisbane Airport.
Hamilton’s Median Sale Price for houses is $1,818,500 and for units is $507,000 with an Average Annual Growth Rate of 6.75% and 1.25% for houses and units respectively. The Median Rent per Week for Hamilton’s houses as reported by CoreLogic is $735 and for units is $413 with Gross Rental Yields of 2.10% for houses and 4.23% for units accordingly.
[4] Bardon:
Bardon is a leafy residential western suburb in the city of Brisbane located 5 km north-west of Brisbane GPO. Bardon’s maximum housing stock is occupied by stand alone houses, lovely cottages and old renovated houses. Bardon is full of amenities be it schools, shopping centers and travel assistance and that also makes it an ideal place to live for residents thereby increasing the demand of properties there.
The Average Annual Growth Rate for Bardon’s houses and units are 5.42% and 2.44% respectively. The Median Sale Price for houses of Bardon is $1,231,000 and $709,000 for units. Bardon showed Median Rent per Week for houses as $650 and for units $350 with Gross Rental Yield of 2.75% and 2.57% for houses and units accordingly.
[5] Bulimba:
Bulimba is a fun and wonderful suburb located 9 km from Brisbane GPO in the city of Brisbane with a population of 6,843 people. Bulimba is a mix of heritage sights, renovated Queenslanders and post war cottages with beautiful Verandahs, bay windows and boutique apartment blocks. Bulimba is one of the wealthy and coolest suburbs of Brisbane City.
Bulimba’s Median Sale Price for houses is $1,350,000 and for units is $642,500 with an Average Annual Growth Rate of 4.12% and 1.92% for houses and units respectively. The Median Rent per Week for Hamilton’s houses as reported by CoreLogic is $850 and for units is $510 with Gross Rental Yields of 3.27% for houses and 4.13% for units accordingly.
[6] Ashgrove:
Ashgrove is a residential suburb located 5.9 km from Brisbane GPO. Ashgrove has been considered one of the affordable suburbs in Brisbane since the post-war period. Now the excellent Queenslander style homes have evolved into a bit more expensive than affordable. Ashgrove is an ideal place recognized by the fellow residents due to its richness in education and sports. Ashgrove fosters post-war wooden and colonial homes, evolved Bungalow style Queenslanders and classic Ashgrovian style houses.
Ashgrove has recorded Median sale prices for houses and units at $1,200,000 and $445,000 respectively with Average Annual Growth Rate of 5.78% for houses and 1.48% for units. The Median Rent per week shown by Ashgrove for houses is $600 and for units is $410 depicting Gross Rental yields of 2.60% for houses and 4.79% for units.
[7] Auchenflower:
Auchenflower is an affluent inner suburb of Brisbane located just 2.5 km from Brisbane CBD with an overall population of 5,870 people. Auchenflower has a variety of Queenslanders, modern homes and standing houses. Auchenflower is also home to great schools and parks as well making it a desirable place.
The Average Annual Growth Rate for Auchenflower’s houses and units are 4.98% and 0.81% respectively. The Median Sale Price for houses of Auchenflower is $1,230,000 and $461,250 for units. Auchenflower showed Median Rent per Week for houses as $600 and for units $360 with Gross Rental Yield of 2.54% and 4.06% for houses and units accordingly.
[8] Greenslopes:
Greenslopes is south-eastern residential suburb of Brisbane City located 5 km from Brisbane CBD. Greenslopes is close by hospital and schools and offers great house options connected to lavish greens.Greenslopes shelters middle working class and rich residents looking for a relaxed atmosphere to hook in.
Greenslopes’ Median Sale Price for houses is $874,500 and for units is $401,000 with an Average Annual Growth Rate of 4.46% and 1.48% for houses and units respectively. The Median Rent per Week for Greenslopes’ houses as reported by CoreLogic is $520 and for units is $360 with Gross Rental Yields of 3.09% for houses and 4.67% for units accordingly.
[9] Wilston:
Wilston is an inner suburb of Brisbane located just 5.4 km from Brisbane CBD. Wilston is an excellent mixture of old and new styles of architecture, from workers’ cottages to modern architect-designed homes on Wilston Hill. Wilton also shelters many high paid professionals including the medical professionals due to its proximity to the hospitals.
Wilston has recorded Median sale prices for houses and units at $1,300,000 and $454,000 respectively with Average Annual Growth Rate of 5.15% for houses and 0.75% for units. The Median Rent per week shown by Wilston for houses is $645 and for units is $360 depicting Gross Rental yields of 2.58% for houses and 4.12% for units.
[10] St. Lucia:
St. Lucia is a south-western riverside suburb in the City of Brisbane located 7.3 km from Brisbane GPO. St Lucia is home to a diverse range of people and families. St. Lucia is amped up with convenience, amenities and quality of life. St. Lucia fosters graceful Federation and Queenslander houses on streets lined with jacaranda trees.
The Average Annual Growth Rate for St. Lucia’s houses and units are 3.86% and 1.76% respectively. The Median Sale Price for houses of St. Lucia is $1,550,000 and $516,000 for units. St. Lucia showed Median Rent per Week for houses as $550 and for units $400 with Gross Rental Yield of 1.85% and 4.03% for houses and units accordingly.
[11] Cannon Hills:
Cannon Hill is an affordably great suburb in Brisbane located 10.4 km from Brisbane CBD with a population of 5,533 people. Cannon Hill is an emerging suburb of Brisbane with cafes and convenience shopping markets making it one of the best suburbs in the City of Brisbane.
Cannon Hills’ Median Sale Price for houses is $870,000 and for units is $450,000 with an Average Annual Growth Rate of 4.90% and -1.08% for houses and units respectively. The Median Rent per Week for Cannon Hills’ houses as reported by CoreLogic is $550 and for units is $440 with Gross Rental Yields of 3.29% for houses and 5.08% for units accordingly.
[12] Kedron:
Kedron is one of the perfect suburbs in Brisbane for the families with huge parks and quiet streets located 7 km from Brisbane CBD with a population of 8,594 people. Kedron has the most affordable houses and best schools in Brisbane. It is close to Westfield Chermside shopping centre in the neighbouring suburb of Chermside.
Kedron has recorded Median sale prices for houses and units at $832,500 and $387,500 respectively with Average Annual Growth Rate of 4.36% for houses and 1.60% for units. The Median Rent per week shown by Kedron for houses is $520 and for units is $365 depicting Gross Rental yields of 3.25% for houses and 4.90% for units.
[13] Highgate Hill:
Highgate Hill is a riverside inner southern suburb of the City of Brisbane located just 3.6 km from Brisbane GPO with a total population of 6,194 people. Highgate Hill is a high-density residential suburb with abundant apartment buildings, few more than 10 storeys high. These apartment blocks are situated on the main road of Dornoch Terrace. A lot of prominent people have been sheltered in Highgate Hill for instance Ron Archer, Daphne Mayo, John McLaren etc.
The Average Annual Growth Rate for Highgate Hill’s houses and units are 6.69% and 2.79% respectively. The Median Sale Price for houses of Highgate Hill is $1,338,150 and $548,750 for units. Highgate Hill showed Median Rent per Week for houses as $560 and for units $365 with Gross Rental Yield of 2.18% and 3.46% for houses and units accordingly.
[14] Holland Park:
Holland is a southside suburb in the City of Brisbane located 6 km to Brisbane CBD with an overall population of 8,111 people. Holland Park is an older suburb made largely of post-World War II wooden homes surrounded by excellent schools, wonderful parks and delicious restaurants and cafes. Holland park is one of the most attractive suburbs of Brisbane for migrants and residents.
Holland Park’s Median Sale Price for houses is $862,900 and for units is $432,500 with an Average Annual Growth Rate of 5.22% and 1.61% for houses and units respectively. The Median Rent per Week for Holland Park’s houses as reported by CoreLogic is $520 and for units is $400 with Gross Rental Yields of 3.13% for houses and 4.81% for units accordingly.
[15] Graceville:
Graceville is one of the most liveable suburbs of Brisbane located 8 km from Brisbane GPO with a population of 4,634 people. Graceville is normally seen to have people living for longer periods than any other suburb hence, vacancy rates are normally lower herein. Graceville houses a lot of sporting clubs along with excellent schools and restaurants and attracting cafes. Graceville fosters elevated classic wooden houses and more renovated houses with enormous and stunning verandahs and backyards.
Graceville has recorded Median sale prices for houses and units at $1,105,000 and $456,000 respectively with Average Annual Growth Rate of 5.18% for houses and 2.62% for units. The Median Rent per week shown by Graceville for houses is $588 and for units is $480 depicting Gross Rental yields of 2.76% for houses and 5.47% for units.
UNIQUE SUGGESTION
Apart from the regular property investment, you can also choose an unique option. If you are someone who seeks higher and good rental yields, then you may be interested in NDIS SDA properties as well. If you haven’t heard about it yet, no worries! You can learn more about NDIS Property Investment (NDIS – An exclusive opportunity) from our previous blog.
NDIS SDA basically provides investors 9% to 16% gross rental yield with an excellent opportunity of helping those in extreme needs. It is safe and secured as it’s a government backed investment plan. You can also check out the listings and availability of the NDIS investment property(Link of listings page) suburb or city wise. NDIS Property investment is gaining a really good momentum in the market right now with many positive responses (NDIS Property Investment Review).
CONCLUSION
Instead of following the hotspots, following the data, stats and proven reports can be more beneficial. Brisbane is growing day by day in terms of popularity, lifestyle, population and property valuation as well. With the increasing population and migration demand for the properties is rising too. Brisbane is third best city to live in and to invest in alongwith following Sydney and Melbourne. If you are looking for many affordable options then Perth(Link to Perth article) and Adelaide(Link to Adelaide article) could also be great choices.
Some of the suburbs mentioned here are expensive and high return providers yet Brisbane do have many affordable suburbs too. You must check out all the parameters while finalizing your investment decision. Here are few more pointers for your considerations and to conclude this article with:
- Apartments in high-rise towers and new and off-the-plan apartment sales and Properties in the blue-collar areas and new housing estates where young families are losing hype, demand and less recommended.
- You may come across many articles mentioning the hotspots of Brisbane but we recommend you to finalise your personal hotspots based on your requirements.
- If you have made your investing decision for the first time then you must understand how to invest smartly(Link to Smart property investment) in real estate to make your investment property more profitable and avoid any loss.
- From an investment perspective, you should select an asset where the land represents 70% of the value of the property, with 50% as the minimum. Before you make any final decision you must do your thorough research and check out previous years’ performance of the suburbs as well to get better clarity at it.
- You must also take the DSR (Demand to Supply Ratio), future valuation, developments and vacancy rates into consideration while buying the best investment property in the suburbs of Brisbane.
We hope this article was helpful for your informative decision. If you have invested in any of these suburbs before then we are sure enough that our readers and us would love to hear your experiences. We do understand that there are many affordable suburbs too, list them down if you had a good experience of investing in them. Until next time, keep researching and let us know where we can be of some help to you!
