South East Qld boom suburbs to buy a home on a budget
The most promising suburbs in South East Queensland have been identified and nabbing a place in these suburbs won’t cost millions – yet.
South East Queensland is the strongest housing market in the country for demand and price growth, yet still one of the most affordable for bargain hunters, a prominent property analyst claims.
New research from Terry Ryder of hotspotting.com identifies 159 suburbs as “rising markets” set for future price growth, with five affordable hotspot precincts leading the growth — Ipswich, Redcliffe Peninsula, suburbs in the Olympic precinct, Logan City and Wynnum.
Buyers on a budget would be wise to invest in suburbs like Bundamba or Beenleigh, where you can still nab a house for under $650,000, according to Mr Ryder’s research.
It’s still possible to buy a house for under $1 million in suburbs like Annerley and Woolloongabba where prices are tipped to continue to skyrocket thanks to an expanding program of infrastructure projects and the prospect of the 2032 Olympic Games.
But buyers had better get in quick, with significant growth set to occur in the next five years, Mr Ryder said.
“Brisbane started this growth cycle with property values half those of Sydney’s and will probably end up being 75 per cent of Sydney’s, so that’s a big jump in values,” he said. “Brisbane is just getting started.”
Mr Ryder’s research has found all but two Brisbane suburbs have recorded annual growth in their median house prices, while 100 per cent of suburbs rose in the most recent quarter. Seven out of ten suburbs have had double-digit annual growth in median house prices and 28 per cent have seen prices increase by more than 20 per cent.
It comes just days after the data from the Australian Bureau of Statistics revealed Brisbane experienced the biggest quarterly rise in residential property prices of any capital city between September and December of 2021 — increasing 9.6 per cent.
“Brisbane started 2022 as the national leader on growth in median house prices,” Mr Ryder said. “This has occurred on the back of high levels of sales activity.”
AFFORDABLE GROWTH HOT SPOTS
For the third straight quarter, all 19 of the suburbs in Ipswich have been classified by hotspotting.com as rising markets, including Redbank Plains, Bundamba and North Ipswich.
Mr Ryder predicts home prices in Ipswich have the potential to jump another 20 per cent in the next 12 months due to being so undervalued.
“Ipswich has not yet fulfilled its potential for growth,” he said. “It’s had extraordinary growth in sales activity, but that has not yet translated to price growth.
“It’s also the cheapest part of the Brisbane market.”
Mr Ryder said Redcliffe was “very underrated” due to it once being considered to have a “daggy image”.
“I think that’s changed a lot,” he said. “It’s a pretty good lifestyle area now, with upgrades to foreshore areas, an injection of cafe culture, a lot of older housing has been knocked down and replaced.
“In Sydney, everywhere on the peninsula would be $1 million and above, whereas you can still buy in the $400,000s and $500,000s here, which is still great value for money for what it offers.”
Annerley is Mr Ryder’s pick of the suburbs located in the precinct that will become the hub of the 2032 Olympic Games.”
“It already has a lot to offer, it’s a nice suburb with good quality housing, it’s on the train line and close to the city, easy access to motorway, a big hospital nearby, and now extra impetus provided by its proximity to what will be the big venue for the Olympics,” he said.
“The fact (Annerley) hasn’t really been discovered as such is part of the opportunity it presents. The next 10 years will be very different to the last 10 years for a suburb like that.”
Logan’s location and affordability make well-established suburbs like Edens Landing and Beenleigh attractive, Mr Ryder said.
“It’s beautifully situated between Brisbane and the Gold Coast, lots of new infrastructure, plenty of major commercial and industrial developments happening,” he said.
“I like the suburbs on the train line.”
Mr Ryder also thinks Brisbane’s bayside suburb of Wynnum is undervalued, with strong potential for further growth.
“Bay outlooks, sea breezes, train links, good infrastructure, and so close to the biggest employment zone in Brisbane — the Australia Tradecoast area,” he said.
“It’s great value for money relative to what you get. If it was in Sydney, everything would be $2 million.”