Revealed: Top Brisbane suburbs for house price growth, rental returns | list

It’s been a stellar year for the Brisbane real estate market despite Covid. We take a look at the best performing suburbs for rentals, and the top house price growth suburbs in the past decade.

Not even a pandemic can halt the stunning march of Brisbane house prices and rental growth, exclusive new data from REA shows.

If you bought in New Farm a decade ago, you have doubled your money according to REA, a real estate digital advertising company which operates Australia’s leading property websites.

At 96.4 per cent growth over the past 10 years, the riverfront suburb was the strongest performer across Brisbane.

Seven Hills on the eastside (89.6 per cent), Hawthorne (88 per cent), Balmoral (77.3 per cent) and Ashgrove (76.6 per cent) rounded out the top five.

The Gap, long overshadowed by its much more up-market neighbour Ashgrove in house price performance, was the surprising top performer for unit price growth in the past decade (37.6 per cent).

Units in the city’s most westerly suburb outperformed those in Bulimba (28.4 per cent), Paddington (26.3 per cent), Norman Park (24.3 per cent) and New Farm (20.8 per cent).

New Farm markets at the Powerhouse is one of the many attractions which makes the suburb so desirable. Picture: News Corp/Attila Csaszar

The stellar result for New Farm comes hot on the heels of median house price data released by CoreLogic, which showed Brisbane house prices smashed records for the ninth consecutive month.

More than 30 suburbs across the state hit double digit increases in the past quarter, according to CoreLogic.

The River City’s median house price shot up another 6.3 per cent to hit an all-time high of $657,551 at the end of June.

New Farm homeowners Joey and Phoebe Dean said they were thrilled to see the Brisbane housing market going so well.

The median house price in their suburb gained 7.6 per cent during the June quarter and has grown nearly 17 per cent in the past 12 months to $2.1 million.

Joey and Phoebe Dean with their children, Audrey 9, Albert 7, Vivian 6 and Peggy 3 at their house in New Farm. Picture: Adam Head

Working in the property industry as managing director of Echelon Property, Mr Dean has seen first-hand how active investors and owner-occupiers are in the local market.

In March, 58 bidders went into a frenzy over an uninhabitable 1920s dump at 49 Browne St which sold for more than $2 million despite having no power — or even a back door.

It took until 2010 for New Farm to make it into Brisbane’s top 10, when an average home cost $141,900.

These days, the median is a whopping $1.401 million.

Statewide, REA revealed Fortitude Valley was the hottest sales market in the city and recorded the third most sales in Queensland so far this year and the most units (318).

Nundah was number six in the state and number two for units at 259 sales, followed by Bracken Ridge (252 house sales).

But if you’re an investor looking for a handy rental return, the hottest suburb is Virginia on the city’s northside where rental yields have been a hefty 4 per cent.

Northgate (3.9 per cent) was close behind, followed by Hawthorne (3.7 per cent) and Grange (3.6 per cent).

Ray White Coorparoo leasing manager Kimberley Hoedemaeckers in 2016, when Carina topped the rental return league table. it is still one of the best in the city. Picture: Renae Droop

Carina Heights, Balmoral and Graceville tied for fifth place on 3.5 per cent.

Carina Heights also recorded the highest rental yield for units (5.1 per cent) in Brisbane.

Long overlooked, Carina and Carina Heights have caught the eye of homeowners and investors in the past five years.

Dozens of new apartment blocks and townhouse complexes now fill spaces where post-war homes once stood and the flow-on effect has been a boon for small businesses.

The revitalisation of Carina, only 7km southeast of the GPO, has been in full swing for several years.

Between 2006-16 the population expanded by more than 2000 and that included a 10 per cent increase in residents aged between 15 and 54.

The former Goodman Fielder bakery at Carina will be turned into a masterplanned community by Frasers Property Australia. Picture: Richard Walker

There were also least 660 more dwellings during the same decade, although since the last census in 2016 there has been a lot of movement in the housing industry.

One area of significant growth has been between Old Cleveland and Stanley roads.

The suburb’s popularity has helped rejuvenate the shopping strip on Kenrose St, which had no retail outlets for years.

Significantly, in 2018 Frasers Property Australia announced it would develop a masterplanned community after buying a 5.4ha infill site at 179-193 Fursden Rd.

It bought the site from Cobbity Farm Bakeries, which had owned it since 1983, for a cool $27.75 million.

Frasers’ general manager residential Queensland Cameron Leggatt said the site offered a rare opportunity in a strong middle-ring suburb.

“Carina is a well-established suburb, supported by extensive urban infrastructure, including transport, schools and shopping with the Westfield Carindale regional centre nearby,” he said.

Rental demand growth across Brisbane has been disappointing, according to the REA figures, with declines in most suburbs for both home and unit owners.

Top performing schools such as Ironside have helped make St Lucia a hot property market. Picture: Nigel Hallett

But St Lucia (9.2 per cent) and Balmoral (7.1 per cent) unit owners recorded strong growth, the only such positives outside the CBD.

Doug Disher Real Estate leasing agent, Jaclyn Lazarou, said St Lucia was one of the city’s premium rental markets.

It was now so hot, despite the devastating impact of the closed international border on the all-important student market, that rentals were being snapped up in less than a day.

“The latest statistics from rentfind.com show a vacancy rate of 0.6 days,’’ Ms Lazarou said.

“When you have such low vacancy rates and fast turnaround times it puts money back in owners’ pockets very quickly.

“Location is really quite a feature for this area. It’s close to everything — the train, CityCats, buses, bike paths, Toowong Shopping Centre, really good schools and the university.’’