Qld dominates Australia’s top 20 suburbs for property investors

Queensland has emerged as the best place in Australia to invest in real estate, dominating national top 20 investor suburbs for houses and units – 75 per cent of which was in the Sunshine State. SEE THE LIST

Investor housing stock in Qld is expected to see strong demand into the next year or so given the relative affordability here compared to southern capitals.

Queensland has emerged as the best place in Australia to invest in real estate, dominating national top 20 investor suburbs for houses and units – 75 per cent of which was in the Sunshine State.

The Courier-Mail Make Your Move Report, powered by PropTrack saw 11 of the top 20 suburbs for houses come out of Queensland – seven of which were in Greater Brisbane – with the state doing an almost clean sweep of the top 20 for units – taking up 19 spots.

The data saw Queensland metrics hold firm for investors, with strong capital gains of 35 to 44 per cent for houses, while unit medians jumped between 19 and 42 per cent

Rental yields have been stronger than southern capitals given more affordable property prices in the state too, ranging from 4.2 to 5.6 per cent for Qld’s top housing suburbs and an even stronger result of 5 to 7.7 per cent for our best unit performers.

Qld’s domination of the top 20 list for units nationally was absolute, with half the list coming out of Greater Brisbane, eight from the Gold Coast, one from Cairns and one from Western Australia.

This house at 25 Bannerman Street, Riverview, has gone under contract after hitting the market priced at offers over $319,000.

PropTrack economist Angus Moore said “Qld is in really high demand from renters – and from purchasers as well”.

“We’ve seen really strong price growth in Brisbane for past three years, but specifically the past 12 months. Brisbane has been one of the fastest growing capital cities.”

The median time for a rental listing on realestate.com.au now was down to three weeks nationally, Mr Moore said “which is very quick, nearly a week faster than it was pre-pandemic – and places like Brisbane are faster still”.

PropTrack economist Angus Moore says rental yields are beginning to rise again in Qld after a stint of solid price gains.

He said rental yields were beginning to grow again after taking a hit nationwide in the past couple of years when prices were growing faster than rents were.

“That’s starting to change now,” Mr Moore said. “Rents are growing quite quickly in many parts of the country and prices are flat or even falling in some areas, so that’s going to start to rebuild yields. But compared to two and a half years ago yields have come off quite a lot.”

Qld’s top investor suburbs beat Brisbane’s annual 24 per cent growth rate, posting jumps ranging from 35 to 44 per cent for houses and 19 to 42 per cent for units.

This home at 6 Nile Street, Riverview, has been snapped up after being listed at offers over $389,000.

The best Qld performer was Riverview in Ipswich, west of Brisbane CBD, for houses – which ranked second in Australia after a 44 per cent rise in median price to $365,000 with rental yield at 5.6 per cent. The suburb’s investor allure includes potential renter numbers sitting 48 per cent higher than the mid-range for other Ipswich suburbs.

Realestate.com.au had 11 houses for sale in Riverview this week, three of which were already under contract, including one sealed by First National Ipswich principal Glenn Ball.

“I’m seeing very strong demand in every single suburb,” Mr Ball said. “There’s a mixture of Qld investors and interstate investors. Most of our properties are still getting multiple offers per property. Market demand is still high. We’re not seeing ridiculous offers being put in like previously, but it’s definitely strong. Rents are just going up because we have such a shortage of them.”

Large blocks of land like this 744sq m at 16 Ipswich Street, Riverview, are part of the drawcard of Riverview. This one is under contract after being priced at offers over $329,000.

Ipswich’s One Mile, which ranked eighth nationally, saw its median price rise 37 per cent to $355,000, while Woodend was 15th off a 45 per cent rise to $520,000.

The Logan-Beaudesert SA4 region had the most suburbs in the top 20 for houses nationally – Mount Warren Park 10th ($602,000 median, up 42 per cent), Waterford West 11th ($508,000, up 35 per cent), Eagleby 18th ($480,000 median, up 43 per cent) and Tanah Merah 20th ($693,000 median, up 37 per cent).

Wide Bay and the Gold Coast both had two apiece in the top 20 – Innes Park 9th ($600,000, up 35 per cent), River Heads 13th ($547,000, up 48 per cent), Merrimac 12th ($910,000, up 38 per cent) and Reedy Creek 17th ($1.33m, up 40 per cent).

The owner of 16 Gibbs Street, Riverview, is keen on offers over $399,000.

The strong investor results for Qld come despite three consecutive interest rate rises by the Reserve Bank which saw cracks appear in Brisbane’s price growth trajectory, falling in June by -0.09 per cent – its first drop since Covid-19 kicked in according to the PropTrack Home Price Index.

”The RBA is raising interest rates very briskly and that’s having more of an impact on house prices in Sydney and Melbourne than it is in Brisbane,” Mr Moore said.

“The broader point is Brisbane and SEQ are going to remain in strong demand. It is relatively more affordable than Sydney and Melbourne which makes it attractive for buyers, renters and investors. You can get more for your money in South East Qld than you can in Sydney or Melbourne.”

Mr Moore said investors were not constrained by having to live in suburbs they buy into, allowing them to look further afield into relatively more affordable places such as Qld.

”It can be a really good opportunity for investors from other places,” he said. “The median price of a unit in Sydney is a fair chunk of money to have to save up for an investment compared to something in Qld.”

FOLLOW SOPHIE FOSTER ON TWITTER

Originally published as Qld dominates Australia’s top 20 suburbs for property investors