Brisbane presents good pickings for first-time home buyers and investors, as it emerges from a housing price slump. The affordable prices allow home hunters to buy on dips and get their foot in the door.
Home values in Brisbane have tumbled by about 11% in the 10 years to 2017, according to data from property information and analytics provider CoreLogic. It appears, however, that the tide is turning as overall home values inched up by 1.3% year-on-year as at 31 March 2018.
Despite the slight uptick in prices recently, homes in Brisbane are still comparatively more affordable – significantly cheaper than some of the other states.
However, it is worthy to note that price movements are not uniform across Brisbane. Notably, the price drop has been more pronounced in the inner-city which has witnessed a surge in supply of housing units.
Suburbs such as Kangaroo Point holding up well
Homes in prime locale and apartments along the serpentine Brisbane river, meanwhile, continues to be sought-after and have fetched big bucks on the market. A recent Australian media report highlighted that some AUD15million worth of luxury apartments in areas including the central business district (CBD) and surrounding suburbs of Kangaroo Point have been sold in March alone.
Waterfront destination Kangaroo Point is an appealing location which boasts breathtaking river views, close proximity to the CBD and easy access to highways leading to Sunshine Coast and Gold Coast. It is also home to a number of attractions, including the Kangaroo Point cliffs and the impressive Story Bridge.
New upscale apartments in Kangaroo Point are hard to come by due to the scarce land supply. Picking a prime property with scarcity factor will not only boost its attractiveness to prospective tenants, but also to potential buyers on the resale market in the future.
A highly anticipated new launch along the river is the Banyan Tree Residences
, the first branded residential project in Brisbane. The AUD150-million development by luxury resort operator Banyan Tree Holdings features a wide selection of units with prices starting from AUD550,000.
Affordable homes in Brisbane make the state an attractive option for inter-state migration. Macquarie said in a research note in March last year that a median Sydney house could purchase 2.2 homes in Brisbane, while a median Melbourne property could purchase 1.5 Brisbane properties.
Premier waterfront living
Waterfront homes with vistas of the city and glistening Brisbane river, in particular, are very much in demand. Their prices have remained relatively resilient owing to the excellent locational attributes and limited new supply.
Real estate is all about location and properties along the riverfront usually commands higher price premiums. In addition, waterfront living offers several advantages:
- Tranquil environment
- Superb views of the river and city
- Wide-ranging recreational and entertainment options
- Resilient pricing
- Healthy leasing demand
What goes down must come up, and the upswing in the jobs market and rising migration rates in Queensland will help to support home price growth in Brisbane.
Macquarie noted that the brighter economic outlook and rising cost of housing in Sydney and Melbourne could lead to an additional 20,000 to 25,000 new Queensland residents a year, compared with 10,000 as at March 2017. Firmer commodity prices could also help to boost royalty earnings which could allow the government to embark on more infrastructure projects. Additionally, the foreign buyer duty surcharge for the state is currently at 3% but this is expected to increase to 7% come July 2018, as announced by the Queensland government.
It is certainly an opportune time to evaluate investment options in Brisbane