Revealed: Brisbane’s interest-rate-proof suburbs

House prices have soared in these 22 locations across the city despite the Reserve Bank of Australia’s rollout of cash rate hikes since last year. SEARCH YOUR SUBURB

Emily and Simon Schlegel with their children Maddy (6) and Harry (4) have purchased their dream home in Manly West after reaping the rewards of their sale in Wakerley. Picture David Clark

THEY are Brisbane’s interest-rate-proof suburbs — 22 locations across the city where house prices have soared since the Reserve Bank of Australia launched its campaign to reign in inflation last year.

A persistent lack of available homes for sale across the River City has meant competition for real estate in these areas remained hot, with gains of up to a whopping 27 per cent in the top-performing suburbs since April 2022.

PropTrack data shows buyers with budgets big and small drove up demand in suburbs spread across Greater Brisbane.

Three-bedroom, two-bathroom home at 29 Wharf St, Macleay Island sold for $400,000.

Macleay Island, off Moreton Bay, recorded the strongest price growth, with the median house price of $400,000 representing an uplift of just under one-third since the RBA first hiked rates from last year’s historic low of 0.1 per cent.

Today’s official cash rate of 4.1 per cent after a total of 12 increases to June is the highest it’s been since 2012.

House prices were up between 20 and 25 per cent in three metro suburbs, including Rochedale (median $1.58m), Bellbowrie ($935,000) and Drewvale ($910,000).

Five-bedroom, three-bathroom home at 41 Mayfield St, Ascot sold for $4.03m.

Home values spiked between 10 and 20 per cent in another 18 suburbs:

Belmont, Ascot, Heathwood, Russell Island, Wilston, Eight Mile Plains, Ormiston, Algester, West End, Upper Kedron, Corinda, Balmoral, Wakerley, Enoggera, Deagon, Hendra, Taringa and Carina Heights.

Rob Zander, of Bay Islands Property, said Macleay Island had maintained its appeal as an affordable sea-change location attracting a mostly older demographic due to its relative isolation.

“The growth here has been a continuation of a trend initiated by Covid, when interstate people started seeing Queensland and the islands as a viable option for that sea-change or work-from-home lifestyle,” Mr Zander said.

“People are largely buying here to downsize and they are paying with cash because home and land prices are still very accessible — and where else can we find a tropical island 30km from the CBD?

“There are some golden opportunities to buy quality land sites under $100,000, or buy a nice home for under $500,000,” he said.

Six-bedroom, six-bathroom home at 22 Zenith St, Rochedale sold for $2.65m.

MORE NEWS

Agent fired over online comments: ‘can’t wait to sell the houses they rent’

Buyers race for Qld property with insane motocross track

Qld property goldmines where equity has surged $400k

Ray White Rochedale agent Nick Yamada said the tumultuous state of the construction industry had boosted demand for turnkey properties, or completed homes not requiring repair or renovations.

Professional families and upgraders were attracted to developing areas such as Rochedale, where most housing is less than 10 years old, Mr Yamada said.

“The value of second-hand homes has really skyrocketed in these areas with the cost of building going up, because many buyers have thought it’s too risky to build new, so they are turning to existing homes,” he said.

PropTrack economist Angus Moore

PropTrack senior economist Angus Moore said Brisbane house prices overall had recovered from last year’s downturn and were now back to their peak of April 2022.

“In that environment, in which prices across Brisbane are up very slightly from when rates started to increase, we’d expect to see some suburbs that have outperformed,” he said.

“Brisbane has been a popular area for buyers across the pandemic, and while rising interest rates have obviously affected buyer demand across the country, we haven’t seen any signs that Brisbane has become less popular.”

National buyers’ agent and market analyst Lloyd Edge said Brisbane generally offered stronger rental yields and lower entry prices than Sydney or Melbourne.

Buyers' agent Lloyd Edge

“Continued migration from the southern states to Brisbane is also increasing demand for housing and is attractive for investors who see the opportunities for both capital growth and a strong yield,” Mr Edge said.

“There is continued high demand for detached housing, mainly in the inner and middle ring suburbs and areas where a great lifestyle is key.”

Wakerley homeowners Emily and Simon Schlegel recently cashed in on capital gains from the property they purchased in 2017 to buy a dream home in nearby Manly West.

The Schlegel family has upgraded to a dream home in Manly West. Picture: David Clark

Their house sold for almost twice what they had paid, while PropTrack data shows the median house price in Wakerley was up nearly 54 per cent in the past five years to $1.17m.

“When we first moved into Wakerley, my husband and I were only dating at that stage,” she said.

“We had plans to get married and start a family and wanted a nice family area.

“My husband and I are both happy we purchased when we did, and it was a great safe area.”

The family has upgraded to a larger property with a home office and a pool.

But suburbs outside the metro catchment, in Ipswich, Logan and Moreton Bay regions, experienced more impressive gains still of up to 48 per cent to a median of $845,000 in top-ranked Chuwar, the data shows.

Prices were up 32.5 per cent in Eastern Heights, and 30 per cent in Toogoolawah, with another six suburbs in those regions recording growth of more than 25 per cent since April 2022.

“In an environment in which many buyers are facing substantially reduced borrowing capacities, those more affordable areas may be more attractive than they were 18 months ago,” Mr Moore said.

Three-bedroom, two-bathroom home at 3 Neale St, Corinda sold for $750,000.

PropTrack’s Listings Report shows choice for buyers remained limited, with 14 per cent fewer new homes coming to market in July compared to the same time last year.

The total number of properties listed for sale across Brisbane was 40 per cent lower than what has been typical over the past decade, Mr Moore said.

Mr Edge said: “There is still a noticeable lack of stock with many vendors still holding off on listing their properties or waiting and hoping to get a better price”.

But activity could be expected to pick up into the traditional spring selling season, particularly with more stable market conditions in sight as the RBA held rates for the second consecutive month in July.