Affordable & Liveable Property Guide - Brisbane Metro 2nd Half 2020
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Affordable & Liveable Property Guide Brisbane Metro 2nd Half 2020
BRISBANE METRO
Annual Change^
METHODOLOGY Sales
Median Price
This affordable and liveable property guide for Brisbane Metro analyses all suburbs
within a 20km radius of the Brisbane CBD. The following criteria were considered:
Rental Price
• Property trends criteria – all suburbs have a minimum of 20 sales transactions for
statistical reliability purposes. Based on market conditions suburbs have either
positive, or as close as possible to neutral price growth between 2019 to 2020*. Sales
• Investment criteria – as of September 2020, suburbs considered will have an on-
par or higher rental yield than Brisbane Metro, and an on-par or lower vacancy rate. Median Price
• Affordability criteria – identified affordable and liveable suburbs have a median Rental Price
price below a set threshold. This was determined by adding percentage premiums
to the Queensland (QLD) average home loan, which was $414,426** as of Q2
2020. Premiums of 38% for houses and 0% for units were added, which were below
those required to reach Brisbane Metro’s median prices (64% for houses and 5%
for units). This places the suburbs below Brisbane’s median prices, meaning that
MEDIAN SALE PRICE
the suburbs identified within this report are more affordable for buyers.
• Development criteria – suburbs identified must have a high total estimated value
of future project development for the 2nd half of 2020, as well as a higher proportion
of commercial and infrastructure projects. This ensures the suburbs show signs of
sustainable economic growth, in turn positively affecting the property market. $678K $435K
• Liveability criteria – all identified suburbs have low crime rates, availability of
amenities within a 5km radius (i.e. schools, green spaces, public transport, HOUSE UNIT
shopping centres and health care facilities), and an unemployment rate on-par or
lower in comparison to the QLD average (as determined by the Department of Jobs AVERAGE DAYS TO SELL
and Small Business, June Quarter 2020 release).
RECENT TOP PERFORMERS
Median Median
Price Projects
58 73
Area Suburb Type Price Price
Growth 2020***
2019 2020* HOUSE UNIT
New Farm House $1,595,000 $1,632,500 2.4% $25.0M
Inner
New Farm Unit $587,000 $650,000 10.7% $25.0M AVERAGE VENDOR DISC.
Chermside House $605,000 $641,000 6.0% $223.1M
North
Everton Park Unit $445,000 $475,500 6.9% $30.7M
Logan Central House $285,100 $290,000 1.7% $535.9M
-1.6% -2.5%
South
Upper Mt Gravatt Unit $413,500 $420,000 1.6% $43.3M
Wynnum West House $540,000 $565,000 4.6% $26.7M HOUSE UNIT
East
Wynnum Unit $430,000 $510,000 18.6% $24.6M
St Lucia House $1,235,000 $1,600,000 29.6% $41.2M
West
Enoggera Unit $387,500 $455,000 17.4% $12.6M MEDIAN RENTAL PRICE
OVERVIEW
Median property prices in Brisbane Metro increased by 4.3% for houses to $678,000
from 2019 to 2020* and softened by 1.1% for units to $435,000. Limited stock and high
demand has supported median price growth for houses, showing resilience throughout $470 $395
COVID-19. Brisbane Metro houses have continued to show steady price growth in the
past five years, creating confidence for property owners. On the other hand Brisbane HOUSE UNIT
Metro units have marginally softened in median price, suggesting excess stock
continues to be absorbed, as supply has halted due to COVID-19. An estimated $4.9B
AVERAGE DAYS TO LET
of development is planned in the 2nd half of 2020, with a focus on infrastructure
projects. Infrastructure projects will further improve liveability for residents whilst
creating local employment opportunities during the construction phase. This will have a
positive effect on economic growth, with a spill-over effect on the real estate market.
*Median price quoted captures sale transactions from 1st January 2020 to 30th September 2020, or Q1 2020 – Q3 2020. **Average home
loan figure is derived from June Quarter 2020 Housing Affordability Report by the Real Estate Institute of Australia (REIA) and Adelaide
Bank. ***Project development is based on aggregate of estimated construction value for residential, commercial, industrial, mixed-use
20 25
and infrastructure projects scheduled to commence in the 2nd half of 2020 as stated by the relevant data authority. ^Annual Change is
reflective of median price change from Q3 2019 to Q3 2020. Figures displayed in infographics are for the period Q3 2020, except for
median sale price, which is reflective of 1st January 2020 to 30th September 2020, or Q1 2020 – Q3 2020.
HOUSE UNIT
Source: APM Pricefinder, REIA, SQM Research, Cordell Connect, Department of Jobs and Small Business. © PRD Real Estate 2020.
AVERAGE VENDOR DISCOUNT KEY COMMENTS
0.0% Average vendor discounts between Q3 2019 and Q3
Change from Listing to Sale Price
2020 have tightened for both property types, to -1.6%
-1.3%
-0.5%
-1.6%
for houses and -2.5% for units. This indicates that
-2.1%
-1.0%
-2.5%
-2.5%
Brisbane Metro market provides unique opportunities.
-2.7%
-2.9%
-3.1%
-3.3%
-1.5%
-3.4%
-3.4%
Sellers can achieve a final sale price closer to their first
-3.8%
-2.0% list price, whilst buyers can still benefit from a discount.
-2.5%
The dominant proportion of houses sold in Brisbane
-3.0%
Metro across 2020# were in the lower-middle price
-3.5% bracket of $500,000 to $700,000 (35.9%). Units also
-4.0% saw high buyer activity within the lower-middle price
Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 bracket, of $300,000 to $400,000 (27.4%). Brisbane
House Unit Metro provides excellent opportunities for first home
buyers compared with Sydney and Melbourne, in terms
of comparable affordability.
MARKET PERFORMANCE
House Sales Unit Sales House Median Unit Median
$800,000 25,000
$700,000
20,000
$600,000
$500,000
15,000
$400,000
10,000
$300,000
$200,000
5,000
$100,000
$0 0
2016 2017 2018 2019 2020#
PRICE BREAKDOWN 2020#
HOUSES SOLD UNITS SOLD
12.1% 12.0%
18.7% 21.1%
Less than $499,999 Less than $299,999
9.0%
$500,000 to $699,999 $300,000 to $399,999
$700,000 to $899,999 27.4% $400,000 to $499,999
13.8%
$900,000 to $1,099,999 $500,000 to $599,999
24.3%
35.9% $1,100,000 and above $600,000 and above
25.7%
#2020encapsulates sales transactions for 2020 (01/01/2020 – 30/09/2020) only.
Source: APM Pricefinder.
© Copyright PRD 2020.
BRISBANE METRO MEDIAN HOUSE PRICE 2020*
20KM FROM CBD
4
2 1
5
3
BRISBANE AFFORDABLE & LIVEABLE SUBURBS
LEGEND RENTAL YIELD
Data not available
$0 - $500,000 Suburb House Suburb Unit
$500,000 - $800,000
$800,000 - $1,000,000 1 Boondall 3.9% 4 Griffin 6.0%
$1,000,000 - $2,000,000
2 Taigum 5.3% 2 Taigum 6.2%
$2,000,000+
20km from CBD
3 Moggill 4.2% 5 Coorparoo 5.4%
Translucent colours for
RENTAL GROWTH 2020 €
In September 2020, house rental yields in Brisbane Metro were recorded at 3.7%. In the 12 months to Q3 2020, the median
house rental price grew by 2.2% to $470 per week, while average days on the market declined by 25.9% (to 20 days).
Overall, the Brisbane Metro rental house market has remained resilient throughout COVID-19.
One bedroom units provided the greatest annual rental growth (+3.0%) to reach $340 per week. A softening in the median
rental price for 4+ bedroom houses (-0.9% to $545 per week) is indicative of tightened household finances due to COVID-19
employment conditions. Tenants may be seeking rental properties with fewer bedrooms to reduce their rent outgoings.
In September 2020, Brisbane Metro recorded a low vacancy rate of 2.0%, well below that of Sydney Metro (3.5%) and
Melbourne Metro (3.8%). Vacancy rates in Brisbane Metro are now at a historical three-year low, well below the Real Estate
Institute of Australia’s healthy benchmark of 3.0%, and continuing on a declining trend even amidst COVID-19 conditions.
This confirms there is an ongoing healthy rental demand, which gives investors confidence.
2 Bed House 3 Bed House 4+ Bed House 1 Bed Unit 2 Bed Unit 3+ Bed Unit
+1.3% +0.0% -0.9% +3.0% +1.3% +2.3%
$390 $430 $545 $340 $395 $450
RENTAL VACANCY RATES 2020
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Sydney Metro Brisbane Metro Melbourne Metro REIA 'Healthy' Benchmark
RENTAL YIELD 2020 §
3.7% 2.4% 2.6% 5.2% 3.5% 3.6%
Brisbane Sydney Melbourne Brisbane Sydney Melbourne
Metro Metro Metro Metro Metro Metro
€ Annual rental growth is a comparison between 2019 and 2020 (01/01/2020 – 30/09/2020) house median rent figures.
§ Rental yields shown are as reported at September 2020.
Source: APM Pricefinder, SQM Research. © Copyright PRD Real Estate 2020.
PROPERTY CLOCK - HOUSES
Peak
Upswing Downswing
Bottom
AFFORDABLE & LIVEABLE HOUSE SUBURBS
BOONDALL 4034 TAIGUM 4018 MOGGILL 4070
2 Bed 2 Bed 2 Bed
3 Bed 3 Bed 3 Bed
4+ Bed 4+ Bed 4+ Bed
Located about 11.8km from the Located about 13.1km from the Located about 16.8km from the
Brisbane CBD. Brisbane CBD. Brisbane CBD.
Median House Price $534,000 Median House Price $537,000 Median House Price $570,000
• 2 Bed Median Price $465,000* • 2 Bed Median Price $427,000* • 2 Bed Median Price N/A
• 3 Bed Median Price $510,000 • 3 Bed Median Price $520,000 • 3 Bed Median Price $735,000*
• 4+ Bed Median Price $590,000 • 4+ Bed Median Price $570,000 • 4+ Bed Median Price $552,000
Boondall is north of the Brisbane CBD Taigum, also north of the Brisbane Moggill recorded a healthy median
and is the most affordable of the three CBD, recorded a median price growth house price growth of 1.6%** amidst
affordable and liveable suburbs of 4.9%** from 2019 to 2020, which is COVID-19, from 2019 to 2020. This
chosen. From 2019 to 2020 median the highest growth among the three suggests there is still high demand in
house prices grew by 2.3%**,which chosen suburbs. Taigum records the the area, despite having the highest
suggests continued growth in the highest price growth out of the three price out of the three chosen suburbs.
future. Boondall recorded low vacancy affordable and liveable suburbs Investors are benefitting from rental
rates of 0.9%, well below Brisbane chosen, which shows the area’s yields of 4.2%. Moggill recorded a
Metro’s 2.0%. This indicates a strong potential. Investors are record low vacancy rate of 0.5% in
healthier rental demand and is highly currently benefiting from rental yields September 2020, well below Brisbane
conducive for investment. Boondall of 5.3%, well above Brisbane Metro’s Metro (2.0%), thus indicating a
ticks many liveability boxes as it is 3.7%. This is in conjunction with a healthier rental demand. Moggill is
close to schools, medical centres, significantly low vacancy rate of 0.9%, close to the Bellbowrie shopping
public transport, shops, and parks. It below Brisbane Metro's 2.0%, thus centre, Moggill State School, public
is also home of the Brisbane solidifying Taigum as an investment transport and the M2 Highway -
Entertainment Centre. About $44.7M^ hotspot. About $25.0M^ worth of connecting to Brisbane, Ipswich and
of projects will start in the 2nd half of developments are planned in the 2nd Gold Coast. Moggill Village Shopping
2020, with a focus on residential half of 2020, in the form of Handford Centre ($30.0M) is a key commercial
projects. This will help first home Road Townhouses, which will create project that will benefit the area, as it
buyers, through accessing multiple 105 townhouses over 3 stages. This will create new jobs pre and post-
Federal and State government grants. will include pool and BBQ facilities. construction.
^Quoted estimated values of projects are based on reported land/construction values as stated by the relevant data authority and do not signify their commercial/resale value. *Median price is quoted as
an indication only due to having less than 20 sales transactions. **Median price growth quoted captures sale transactions from 1st January 2020 to 30th September 2020, or Q1 2020 – Q3 2020.
Source: APM Pricefinder, SQM Research, Cordell Connect, Department of Small Jobs and Business, Google Maps. © PRD Real Estate 2020.
PROPERTY CLOCK - UNITS
Peak
Upswing Downswing
Bottom
AFFORDABLE & LIVEABLE UNIT SUBURBS
TAIGUM 4018 GRIFFIN 4503 COORPAROO 4151
1 Bed 1 Bed 1 Bed
2 Bed 2 Bed 2 Bed
3+ Bed 3+ Bed 3+ Bed
Located about 13.1km from the Located about 18.8km from the Located about 3.3km from the
Brisbane CBD. Brisbane CBD. Brisbane CBD.
Median Unit Price $325,000 Median Unit Price $334,000 Median Unit Price $415,000
• 1 Bed Median Price N/A • 1 Bed Median Price N/A • 1 Bed Median Price $310,000*
• 2 Bed Median Price $300,000* • 2 Bed Median Price N/A • 2 Bed Median Price $379,000
• 3+ Bed Median Price $325,000 • 3+ Bed Median Price $295,000* • 3+ Bed Median Price $520,000
Taigum is featured twice in the 2nd Griffin is north of Brisbane’s CBD, and Coorparoo is the closest affordable
half of 2020 guide as an affordable has an attractive median unit price and liveable suburb to the Brisbane
and liveable suburb, for houses and whilst ticking all the liveability factors CBD. From 2019 to 2020 median unit
units. Taigum recorded median unit such as with schools, parks, public prices grew by 6.1%**. A unit rental
price growth of 1.0%** from 2019 to transport options, and a large yield of 5.4% (as of September 2020),
2020 and has the most affordable shopping centre (Westfield North above Brisbane Metro’s (5.2%), has
median unit price out of the three Lakes). Investors benefited from attracted many investors into the
chosen suburbs. Investors benefit attractive unit rental yields of 6.0%, area, due to its proximity to the CBD.
from extraordinary unit rental yields of above the Brisbane Metro’s 5.2%. It Vacancy rates are 1.6%, which is
6.2%, which is well above Brisbane has a significantly low vacancy rate of lower than Brisbane Metro’s 2.0%.
Metro’s 5.2%. This combined with a 0.8%, much lower than Brisbane This indicates a healthier rental
low vacancy rate of 0.9%, well below Metro’s 2.0%, which makes Griffin an demand, which is highly conducive for
Brisbane Metro's 2.0%, makes ideal investment suburb. investment. Coorparoo ticks many
Taigum an ideal investment suburb. Approximately $27.5M^ worth of boxes as it is well serviced with
The 2nd half of 2020 will see developments are planned in the 2nd medical centres, schools, shops,
approximately $25.0M^ worth of half of 2020, with a main focus on public transport options and parks.
project developments, with a focus on residential projects. A key project is Work on a total of $31.9M^ of
residential projects. This will help first the Goodrich Road East Townhouses developments is set to commence in
home buyers own a home, through ($22.5M), adding 75 townhouses in 2 the 2nd half of 2020, with a large
accessing multiple Federal and State stages, including a swimming pool, focus on mixed use and residential
government grants. recreation area, and BBQ patios. projects.
^Quoted estimated values of projects are based on reported land/construction values as stated by the relevant data authority and do not signify their commercial/resale value. *Median price is quoted as
an indication only due to having less than 20 sales transactions. **Median price growth quoted captures sale transactions from 1st January 2020 to 30th September 2020, or Q1 2020 – Q3 2020.
Source: APM Pricefinder, SQM Research, Cordell Connect, Department of Small Jobs and Business, Google Maps. © PRD Real Estate 2020.
PROJECT DEVELOPMENT MAP 2ND HALF 2020*
$275.4M
$1.1B
$2.1B $794.8M
$593.3M
Estimated
Location Project£ Type Suburb
Valueµ
1 Cross River Rail (RIS Package) Infrastructure $1,000,000,000 Bowen Hills
2 Logan Water Infrastructure Program Partnership Infrastructure $520,000,000 Logan Central
3 Ozcare Newstead Commercial $200,000,000 Newstead
4 Lake@Waterfront Precinct Mixed-Use $200,000,000 Newstead
5 Woolworths Distribution Facility Heathwood Commercial $148,000,000 Heathwood
6 Oxley Creek Revitalisation - Overall Project Infrastructure $100,000,000 Rocklea
7 Neville Bonner Bridge Infrastructure $100,000,000 South Brisbane
8 Ann Street Office Tower Commercial $86,600,000 Fortitude Valley
9 Aveo Carindale Retirement Village Redevelopment Remaining Stages Commercial $80,000,000 Carindale
10 Hope Street Mixed Use Building (128 Units) Mixed-Use $75,000,000 South Brisbane
11 Silk Mixed Use Development Building 1 (178 Units) Mixed-Use $75,000,000 Woolloongabba
12 Bernborough Ascot Stages 2-4 Commercial $74,000,000 Ascot
13 Coles Distribution Facility Commercial $60,000,000 Redbank
14 Northern Transitway Infrastructure $53,000,000 Chermside
15 Redbank Motorway Estate Logistics Facility Industrial $50,000,000 Redbank
16 Dexus Industrial Estate Richlands Industrial $50,000,000 Richlands
17 Kedron To Chermside Northern Transitway Bus Lane Infrastructure $50,000,000 Chermside
18 Wickham Street Mixed Use Development (136 Units) Mixed-Use $50,000,000 Fortitude Valley
19 Thomas & Charlotte Streets Mixed Use Development (143 Units) Mixed-Use $44,000,000 Chermside
20 Boggo Road Gaol Precinct Infrastructure $42,100,000 Dutton Park
* Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Top Projects are based on suburbs located within a 20km radial distance of the Brisbane CBD.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
Source: Cordell Connect database, ESRI ArcGIS
© PRD Real Estate 2020.
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