353 Qld suburbs where homeowners are sitting on a gold mine

Homeowners in dozens of Brisbane suburbs could be sitting on more than $400,000 worth of equity after dramatic price increases of more than 40 per cent . FIND YOUR SUBURB.

New data from PropTrack shows many homeowners are sitting on hundreds of thousands of dollars worth of equity.

HOMEOWNERS who bought five years ago in parts of southeast Queensland are sitting on a record amount of equity, with new figures revealing capital gains of nearly 900,000 in some suburbs.

The data shows home prices across Brisbane have risen 49.8 per cent in the past five years, thanks to soaring demand, low supply, and the lifestyle trend driven by the pandemic, resulting in significant capital gains for many Queenslanders.

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This four-bedroom house at 21 Lillypilly Plc, Regency Downs, is on the market for $770,000.

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The PropTrack research reveals 269 suburbs in the Greater Brisbane region where homeowners have accumulated equity of more than $111,000 since 2018, with house owners in 49 suburbs sitting on $400,000 or more.

Unit owners in 84 suburbs have accumulated equity of $8000 or more in the past five years, according to the data.

This contemporary house at 154 Hargreaves Ave, Chelmer, is on the market.

Regency Downs, in the Lockyer Valley region, is the richest when it comes to capital growth, with the median house price in the suburb skyrocketing by almost 96 per cent ($296,709) in the past five years.

The inner Brisbane suburbs of Chelmer and Taringa have also seen capital gains in houses of 90 per cent, or a whopping $890,469, and 82 per cent, or $700,219, respectively.

House owners in Caboolture South have also built up significant equity if they bought five years or more ago.

This four-bedroom renovator at 48 Morrow Street, Taringa, is for sale.

Those who have owned a unit in Algester for the past five years have accumulated gains of 77 per cent or $287,472, with the median unit price now $585,000, while the median unit price in Caboolture has gained 75 per cent since 2018.

PropTrack economist Angus Moore said Brisbane’s house price growth in the past five years had been “very strong”, particularly during the pandemic.

This three-bedroom house at 39 Casey St, Caboolture South, is for sale for offers over $569,000.

“The areas that have seen the most growth are related to what we saw during the pandemic — areas where people can find larger homes, which is usually in the outer suburbs,” Mr Moore said.

He said the majority of homeowners who bought before 2021, when home prices grew 23 per cent nationally in one year, would be sitting on “very significant gains on the back of what was a historically strong year for home price growth”.

But after 12 interest rate rises since last May, using that equity has become less attractive.

“We haven’t seen a lot of sales activity over the last 12 months,” Mr Moore said. “Spring last year was pretty quiet, which continued into 2023. There may be some signs things have picked up a little bit, but it’s traditionally quiet in winter so it’s hard to tell just yet.”

PropTrack economist Angus Moore.

There has been an increase in the share of people buying with a larger deposit behind them though.

Data from the Australian Prudential Regulation Authority (APRA) shows the share of mortgages with a loan-to-value ratio of under 60 per cent has increased to almost 30 per cent from below 20 per cent in 2021.

“That suggests some people at least are using that equity to upgrade, sidegrade, downgrade, with a lot of equity behind them,” Mr Moore said.

A unit in this complex at 226/26-32 Edward Street, Caboolture, is for sale.

“It’s hard to know if we’re seeing cash-out refinance. In an environment with substantially higher interest rates, if you’re on a fixed rate, there’s little incentive to refinance early.”

Tammy Nieling of 83 Property said a “great migration” to the Lockyer Valley region had driven house prices higher in Regency Downs, where the average block size was about 4000 sqm.

“We’ve absolutely seen a great influx of people coming out to our area,” Ms Nieling said.

“Regency Downs is one of the bigger suburbs in our core area and we’re seeing a great migration and a big change in prices.

A unit in this complex at 2/12 Colton St, Highgate Hill, is for sale.

“Why wouldn’t we be? You get to live on acreage, in a beautiful spot and still get great value for money.”

Ms Nieling said many new residents had moved there from Brisbane and Ipswich, but still did the commute to work each week.

“It’s a change of lifestyle definitely,” she said. “We’re very tightly held, so we don’t have a lot of turnover at the moment. It’s quite difficult to get new listings because people love the area and stay in the area.”

Tech-driven non-bank lender Bridgit has hit $1 billion in loan applications only 12 months since launching to the market.

A unit in this complex at 4/44 Miles St, Hawthorne, is for sale.

Bridgit CEO Aaron Bassin said it showed homeowners were cashing in on price growth, with 60 per cent of applications for downsizers looking to buy their next home before selling their existing property first.

“Many older Australians are asset rich but income poor, their money is tied up in the value of their property,” Mr Bassin said.

“In the past they would have considered downsizing to a smaller property because their children had moved out and to cut down on home maintenance. However, with the current economic environment I believe this will change, and we will see a large cohort choose to make their downsize sooner than planned, to free up their equity in order to support them with the rising cost of living, avoid the requirements to pay an increasing mortgage and live the lifestyle they are looking for.”

Mr Bassin said a new demographic of downsizers were entering the market — middle-aged people and families who are selling to buy lower-value properties.

Bridgit CEO and co-founder Aaron Bassin. Source: Supplied.

“We’ll see some unable to service their home loans and make the tough decision to sell, while others will be on the front-foot and sell sooner to avoid the hit in further rate rises in a bid to ease the financial impact it will have on them,” he said.

PropTrack’s July home price index found Brisbane home prices have already clawed back all their losses from last year.

But PropTrack senior economist Eleanor Creagh said the pace at which prices had been rising in Brisbane may slow come spring selling season when more listings are likely to hit the market.

“I think one of the biggest drivers over the next few months will be the flow of listings that come to market,” Ms Creagh said.

“We know auction activity has remained pretty solid...and after seven months of price growth, you’d have to think that’s going to continue to encourage vendor confidence and encourage people who have held back from listing to list.”