What are the Best Suburbs to Invest in Brisbane?
Investing in property is a big step. And one of the most important decisions you’ll need to make on your property investment journey is determining which suburb you should buy in. But before you can make that decision, it’s a good idea to answer some important questions: What are the best investment suburbs in Brisbane? What should first-time investors know about Brisbane growth suburbs? And just because a suburb is labelled one of the “best places to live in Brisbane,” does this automatically make it a good suburb for successful property investment?
Finding the answers to these questions could go a long way towards helping you secure a fantastic property investment in Brisbane. On the flip side, a failure to do so could severely hinder your future financial goals.
To help you get started, we’ve put together the following guide for property investors. This guide is designed to help you ascertain which Brisbane investment suburbs are most likely to experience long-term growth and what areas are currently seeing strong rental yields. While any significant financial investment always comes with an element of risk, we’ve included some of the best suburbs in Brisbane to invest in, based on current market trends and industry expert predictions.
Property Investment in Brisbane 2021-2022
The Australian real estate market has undergone some significant changes over the past few years, with many regions experiencing strong growth despite the economic consequences of a global pandemic. This has been particularly noticeable in South East Queensland, which has seen a surge in interstate migration. A recent CoreLogic report revealed the median house price in Brisbane increased by a staggering 20% in the 12 months up to August 2021, while unit prices grew by a respectable 8.9% across the same period. Industry experts are currently predicting property prices will rise by a further 15% in 2022 and more than double by the time the city is ready to host the 2032 Olympic Games.
What Are the Top Brisbane Growth Suburbs?
Why is it important for potential investors to consider growth suburbs in Brisbane? Because population growth is one of the key indicators for predicting future property values. Simply put, the more people who want to live in a particular area, the more demand there is likely to be for housing there. And the higher the housing demand, the more property values will climb.
So, how can you identify the top growth suburbs in Brisbane? A recent study by Matusik Property Insights evaluated the current population growth forecast for South East Queensland. Out of a total of 323 suburbs considered, the study found that 40% of the area’s total population growth will likely occur within just 20 suburbs. And 13 of those suburbs could rightly be labelled as Greater Brisbane growth suburbs (as they are all located within Greater Brisbane local government areas). These include:
Jimboomba, where the population is expected to increase by 2,920 people (accounting for 37% of the Logan region’s projected growth).
Ripley, where an estimated 4,030 people will account for 31% of the Ipswich region’s anticipated growth.
Greenbank, also in Logan, is likely to account for 21% of the region’s growth, with an added 1,650 people.
South Brisbane is the highest estimated growth area in Inner Brisbane, with 18% of the region’s growth expected here (an added 1,120 residents).
Newstead-Bowen Hills follows closely behind, accounting for 16% of Inner Brisbane’s predicted growth.
North Lakes-Mango Hill
North Lakes-Mango Hill is the highest growth area in the Moreton Bay LGA, accounting for 16% of the region’s population growth.
Rosewood, Bellbird Park-Brookwater and Springfield Lakes
Rosewood, Bellbird Park-Brookwater and Springfield Lakes in the Ipswich region are each predicted to achieve 12% of the total area’s growth.
Fortitude Valley is another Inner Brisbane suburb that should see ongoing growth, with an added 610 residents accounting for 10% of the area’s growth.
Murrumba Downs-Griffin and Cashmere
Murrumba Downs-Griffin and Cashmere in the Moreton Bay region are likely to see ongoing growth, with an additional 700+ people expected in both suburbs (representing 9% and 7% respectively of the area’s total population growth).
Redbank Plains will be responsible for 3% of Ipswich’s total growth, with an additional 730 new residents predicted to arrive.
What are the Best Suburbs to Invest in Brisbane?
When considering the best suburbs in Brisbane for investors, it’s important to consider a range of potential budgets. An area with a median house price of $1 million+ may be experiencing excellent growth and delivering strong rental yields, but this doesn’t make it a good choice for an entry-level investor with a limited budget.
For this reason, the following list includes a range of top suburbs in Brisbane for investors in entry-level, mid-range and high-end budgets.
Best Suburbs in Brisbane for Entry-Level Investors (up to $725,000)
If you’re looking for a starting investment, then properties in these suburbs represent an opportunity for good value and solid rental yields.
Stafford Heights: The median house price for a 3-bedroom home in Stafford Heights is currently $717,000, up from $650,000 in September 2020. The area is experiencing high demand amongst buyers, with an average of 2,181 visitors per listing on realestate.com.au. With a population predominantly made up of couples and families, the average 3-bedroom home here will rent for around $500 per week.
Keperra: Keperra has a median house price of $660,000 (an increase of $100,000 over the past 2 years) and an average rental price of $480 per week. The great public transport connections (with a direct train connection to the Brisbane CBD) makes it an attractive suburb for renters who want a simple commute to the city. The suburb is known for its community feel, with the majority of the population comprising established or older couples and families.
Chermside West: Chermside West presents investors with an opportunity to buy either a house or a unit, with both seeing high demand from buyers. The median price for a unit in Chermside West is $520,000, with an average rent of $470 per week and an annual rental yield of 4.7%. Houses also represent great value, with a median price of $710,000 and an annual rental yield of 3.6% (with an average weekly rent of $490). While units haven’t experienced a lot of growth over the past 5 years (just 0.8%), houses have seen a compound growth rate of 5.3%. This suburb has easy access to hospitals, schools and public transport, making it a popular place for established and maturing families.
Top Suburbs in Brisbane for Mid-range Investors ($725,000 – $1 million)
The following 3 suburbs are popular Brisbane investment suburbs, thanks to their predicted suburb growth and current reliability for rental yields.
Holland Park: Holland Park offers the convenience of the city (with the CBD just 15 minutes away by public transport) coupled with an abundance of parklands and open spaces. This makes it a popular place for couples and families, who make up over 50% of the demographic. The median house price in Holland Park is $900,000, with an annual rental yield of 3.0% and a compound growth rate of 5.7% across the past 5 years.
Cannon Hill: The median house price in Cannon Hill is $936,000, with mostly 3-bedroom ($789,500) and 4-bedroom ($980,000) homes available. Since September 2020, this suburb has seen the median house value increase by almost $200,000. Thanks to its mix of excellent schools, shopping centres and convenient public transport, Cannon Hill is considered one of the top suburbs in Brisbane for families. The average 4-bedroom investment property will achieve a weekly rent price of $750, while a 3-bedroom house can expect to lease for $510 per week.
Tarragindi: Tarragindi is considered a high demand market, with the average real estate listing receiving 2,644 visits (so interested buyers need to be prepared to act fast!). The median house price has experienced a 5-year compound growth rate of 6.3%, with the average house now costing $980,000. With the average weekly rental price sitting at $550 for houses, an investment property in Tarragindi typically delivers an annual rental yield of 2.9%.
Best Suburbs in Brisbane to Invest in for High-End Budgets ($1 million+)
If you’re considering investment properties in the $1 million+ price range, then you’ll be able to start looking at some of the suburbs that are closer to the river and the Brisbane CBD.
New Farm: Renowned property investor Michael Yardney has described New Farm as having “all the ingredients for a bulletproof investment.” This riverside suburb is in a highly desirable location, with easy access to premium lifestyle precincts, great schools and all the employment opportunities found in the CBD. The median house price in New Farm is just over $2 million (although 3-bedroom homes can be purchased for an average cost of $1.5 million). Houses in New Farm can deliver an annual rental yield of 2.1% and have experienced a 5-year compound growth rate of 5.0%.
Ascot: Ascot is ideally situated between the Brisbane CBD and the airport (the city’s two biggest employment hubs) and has great public transportation connections. While demand for units in Ascot has dropped off recently, houses have experienced a compound growth rate of 5.0% across the past 5 years. The median house price in Ascot is now $1.73 million, with an average weekly rent of $843.
Highgate Hill: Properties in Highgate Hill are predicted to increase in value thanks to a range of recently completed and upcoming infrastructure projects. Houses in this suburb have experienced a compound growth rate of 6.0% over the past 5 years, with a current median house price of $1.37 million. Industry experts recommend keeping an eye out for investment opportunities that fall within key school catchment areas or that boast impressive city views.
Talk to an Experienced Mortgage Broker About Property Investment in Brisbane
If you’re researching the best investment suburbs in Brisbane, then make sure you don’t overlook one of your most valuable resources: an experienced investment property mortgage broker. What are the benefits of consulting with a local mortgage broker? As an industry expert with knowledge of the local real estate market, your mortgage broker can give you free expert advice that has been tailored specifically to your needs. To find out more, contact your local Brisbane finance broker today.
Disclaimer: Please note that the information provided in this article is general in nature and is not intended as financial advice. It is for informative purposes only. We recommend obtaining professional advice that considers your personal circumstances and needs prior to making financial decisions.