Big development behind old suburb's property price spike

DESPITE numerous new developments across the city, it is one of Ipswich's oldest suburbs that is showing new growth.

Dinmore Train Station. Picture: Cordell Richardson

DESPITE numerous new developments across the city, it is one of Ipswich's oldest suburbs that has shown the biggest median price growth over the past five years, and it's possibly down to the "Costco Effect”.

Dinmore sits on the entry to the Ipswich Motorway and is blessed with one of Ipswich's biggest railway station car parks, and business investment has contributed to making it a champion in price growth in the past five years.

Since 2013, the suburb has seen an increase in the median price of properties sold up to a staggering 33.8 per cent, driven by infrastructure coming to the area like the Puma Travel Centre, World Gym and Costco which is set to attract hundreds of thousands of people to the area from all over South East Queensland.

With easy access to the Ipswich Motorway, Warrego Highway, and Cunningham Highway, Dinmore is a suburb of choice for many families and investors.

Craig Mendoza from PRD Nationwide Real Estate has seen house prices in the suburb remain constant over the past few years, but thinks with the area set to attract a raft of new businesses, it represents good value.

"The reason why Dinmore has risen in popularity is due to big ticket businesses, like Costco and another being World Gym. The owners of the gym have invested a lot of money in the business,” Mr Mendoza said.

"People are screaming out for infrastructure in Ipswich.

"While the median price alone isn't a true guide of house property prices, in fact they haven't risen at all, so you only have to have one big sale and it drives the median price up, and in this case that's Costco.”

Dinmore Train Station. Picture: Cordell Richardson

Mr Mendoza is convinced that Dinmore will feel a flow on effect from Costco.

Mr Mendoza says that the suburb offers good options for investors.

"The large industrial estate is developing and growing very rapidly, and many people who live in Dinmore choose to use the train station as it's got a good secure car park,” he said.

"For commuting to Ipswich and Brisbane it's a perfect spot, and has a great school in St Peter Claver College. Dinmore has a lot to offer,.

"For investors it's a good suburb, especially with Costco coming. We know from our experience 'if you build it they will come'.

"Dinmore is a great place to invest as it has some of the best rental returns in Ipswich and properties in the suburb get higher rental yields than surrounding suburbs.

"It's hard to use the word 'boom', as I don't believe there will ever be a boom like we saw in 2003, but I do think the investment will have a positive flow on effect from small businesses. You see it in places like Logan, big industrial estates are full of cafes and takeaways, they thrive on all the employees in the area. I think Costco is going to be so good for the area and we will see businesses open their doors.”

Coming in at second place on the list was Sadlier's Crossing, a suburb close to the Ipswich CBD and with the addition of Bunnings in the past couple of years along with many new businesses in West Ipswich, the area has seen a boom in the last five years of 33.2%.

A suburb popular with renovators and many historic homes, it is the access to everything that is proving a hit.

Coming in third was Karalee, a suburb with historically larger size blocks than most new developments, and with a massive $80 million expansion underway to the Karalee Shopping Village the suburb can expect to continue to grow in popularity.

Suburb Change in Median Price, (5 years)

Dinmore 33.8%

Sadliers Crossing 33.2%

Karalee 31.5%

Eastern Heights 30.6%

Moores Pocket 29.8%

North Ipswich 28.9%

Silkstone 27.5%

Coalfalls 26.5%

Chuwar 26.3%

Redbank 26.2%

(Source: CoreLogic)

Originally published as Big development behind old suburb's property price spike