Buy here for under $600k: The QLD suburbs set to boom in 2023

House hunters gearing up to buy have been gifted an exclusive glimpse at the Queensland suburbs predicted to boom in 2023 and where you can still score a bargain.

An annual report by Canstar and Hotspotting reveals the Queensland suburbs predicted to boom in 2023.

House hunters gearing up to buy in 2023 have been gifted exclusive expert insight into the Queensland suburbs predicted to boom in the year ahead, with the state tipped to lead a nationwide market rebound.

Annerley, Eagleby, and Eastern Heights are among a select group of locations hand-picked by one of the country’s most respected property analysts to outperform over the next 12 months — and he says now is the time to buy before the market takes off again.

This three-bedroom house at 8 Kelly St, Eagleby, is for sale.

Ryder Research Resources managing director and Hotspotting property analyst Terry Ryder said the Brisbane housing market would bounce back from this year’s slowdown to become a growth market once again in 2023.

“Few markets across Australia have better prospects for growth than Brisbane’s,” Mr Ryder said. “I think 2023 is going to be a growth year for property — not a boom year like 2021, but there will be more places seeing prices rising than falling, and Brisbane and regional Queensland will be at the forefront of that.

Hotspotting managing director Terry Ryder.

“In the next 12 months, Brisbane is likely to produce growth numbers boosted by internal migration and major infrastructure projects, with the 2032 Olympics a beacon for investment.”

Canstar’s annual Rising Stars Report, powered by Hotspotting, identifies the most promising locations for capital growth across Queensland in 2023 using a series of forward-looking indicators including sales activity, vacancy rates, rental growth, and infrastructure spending.

Of the 14 jurisdictions analysed in the report, Brisbane ranks No.2 overall after Adelaide — increasing from 8th place in 2022.

This three-bedroom house at 9 Kennedy St, Caboolture, is for sale for offers over $560,000.

Mr Ryder said Brisbane’s appeal was also part of a national trend where buyers were chasing affordability and, in the case of investors, above-average rental yields.

Many of the Queensland suburbs identified for capital growth in 2023 have median home prices below $600,000, including Caboolture, Annerley (units), Deception Bay, Eagleby, and West End (units).

“This means the cheaper areas of the Greater Brisbane area are still attracting good demand from buyers,” Mr Ryder said.

This two-bedroom unit at 29/62 Waldheim St, Annerley, is on the market.

But he said the affordability gap between Brisbane and Sydney and Melbourne was rapidly closing.

“I think now and early 2023 is an opportunity to buy in Brisbane because (the market) has paused in its growth,” he said. “I think it will resume a strong growth path.”

Along with strong rental growth and low vacancy rates, Mr Ryder sees the billions of dollars worth of infrastructure projects underway in Brisbane as having the strongest influence on the future of the housing market.

This two-bedroom unit at 28/83 O'Connell Street, Kangaroo Point, is on the market for offers over $540,000.

“This factor will be enhanced by preparations for the 2032 Olympics,” he said. “The big event is a decade away, but planning starts now on the sporting, transport and hospitality infrastructure needed.

“This will generate economic activity and jobs, with many thousands of people moving to Brisbane to work on the projects.”

Jennelle Wilson, Partner at Knight Frank Australia partner Jennelle Wilson agrees the suburbs close to Olympic venues are set to benefit, with 57 per cent of Olympic sporting events to be held within 5km of the Brisbane CBD.

“These inner-city precincts will see direct uplift from infrastructure investment and bring substantial employment opportunities and increased amenity,” she said.

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“In areas like South Brisbane, we expect that international and domestic developers will attempt to secure mega-sites over the next couple of years with a view to building mixed-use developments.”

Regional Queensland ranks No.4 overall in this year’s report, but it takes first place among the country’s regional markets.

A digital depiction of how the Gabba and surrounding areas in South Brisbane will be transformed for the 2032 Olympics in Brisbane.

“Regional Queensland has dropped slightly from second to fourth, but the outlook is still promising,” Mr Ryder said. “As the nation’s leading recipient of population growth from internal migration, it continues to benefit from the ‘Exodus to Affordable Lifestyle’ trend.”

Places like Bundaberg South, Caloundra, Newtown, and South Toowoomba, make the list of suburbs identified for growth.

This two-bedroom unit at 60 Lower Gay Tce, Caloundra, is on the market for offers over $589,000.

“Toowoomba I think is attracting a lot of attention for very good reason,” Mr Ryder said.

“It’s already our second largest inland city after Canberra.

“It’s the capital of a big agricultural area, a resources province, and you’ve got Wellcamp airport.

“It will also be enhanced massively by the inland rail link. I’ve no doubt it’s going to grow in value.”

Canstar editor-at-large Effie Zahos said affordability was central to the list of suburbs in the report nationally, and that loan serviceability was “a major stumbling block for buyers”.

Canstar editor-at-large Effie Zahos. Picture: Tim Hunter.

“Not only will they need to be able to service the headline (interest) rates but banks will be factoring in a 3 per cent buffer (on top of that),” she said.

“If you factor in the possibility of another three 0.25 percentage point rate rises, the monthly repayments for a loan over 30 years on a $600,000 property with a 20 per cent deposit will be under $2900.”

The official cash rate is 2.85 per cent after seven consecutive months of rises since May.