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16 best suburbs to invest as Brisbane’s property market moves to the next phase - featured image
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16 best suburbs to invest as Brisbane’s property market moves to the next phase

Are you considering an investment in the Brisbane property market but don’t know where to start or the best locations to look into?

Well…after Sydney and Melbourne, Brisbane is clealry Australia’s third-biggest property market.

And it's no secret that Brisbane was one of the strongest property markets during the boom of 2020-21 with house prices increasing 42.7% from the Covid trough to its peak in June 2022 as the city enjoyed a boom in population with many Sydneysiders and Melbournians flocking north in search of more affordable property in lifestyle locations.

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And while Brisbane's property market experienced a flat patch earlier this year, the city has now passed the bottom of the market downturn, enjoying a number of month-on-month increases in median property prices.

Corelogic data shows Brisbane home values rose 1.4% last month, meaning Brisbane prices are recovering with 6 consecutive months of growth.

This brings prices up 2.4% so far this year.

Yes, it is clear that Brisbane has entered the next phase of the property cycle - the recovery phase.

Of course the market bottom is not one day or one week - it's a process that occurs as there are many sub markets in Brisbane, but despite potential headwinds in the coming months, most experts now predict that prices will continue to recover.

And while markets appear to be rebounding across the state, there is also a clear flight to quality across its capital.

We’ve noted that A-grade homes and "investment grade" properties are still in short supply, B-grade properties are taking longer to sell and informed buyers are avoiding C-grade properties.

Now, the question I hear many property investors ask is: “What is going to cause property values to increase moving forward?”

After all, the rising tide that lifted all ships in the last boom has now gone, as has the period of rising household incomes and low-interest rates that we enjoyed over the last decade.

And this means our property markets will be much more fragmented moving forward, with capital growth dependent on local factors including demographics, gentrification, neighbourhood, and wage growth of the people in these locations.

Not only that, ​​Federal government forecasts in January 2023 suggest that Queensland’s population is expected to grow by more than 16% by the time Brisbane hosts the Olympic Games in 2032, further putting a floor under property values.

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Note: Moving forward, Brisbane real estate is expected to continue to attract strong demand for homes, particularly in lifestyle areas.

The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas means as an investor, if you buy the right investment property in the right location, you could be primed to supercharge growth.

So what are the best Brisbane suburbs for investment?

Whether you are looking for a higher-end purchase or a beginning investor, I think these are the Brisbane suburbs that are set to take advantage of the changing face of the city.

And, while growth is on the mind of every investor, importantly these locations could also be considered recession-resistant.

That’s because each of these noteworthy suburbs is close to major employment hubs, they have bulletproof school catchments and immediate access to public transport and local infrastructure.

Here, they’re listed in order of annual property price growth and by rental yield for both houses and units, using data from domain.com.au and realestate.com.au.

Best suburbs in Brisbane by annual property price growth

HOUSES

Suburb Median house price Quarterly growth Annual growth
Wilston $1,690,000 12.12% 37.70%
Teneriffe $3,050,000 0.00% 20.80%
New Farm $2,630,000 8.69% 17.40%
Ascot $2,170,000 2.78% 16.70%
Ashgrove $1,500,000 7.40% 16.00%
Wavell Heights $1,177,000 4.45% 6.10%
Highgate Hill $1,670,000 0.00% 6.00%
Taringa $1,455,000 -11.00% 3.10%
Keperra $816,500 2.50% 1.40%
Mansfield $1,005,000 -0.21% -0.50%
Cannon Hill $1,123,500 3.53% -2.60%
Stafford $920,000 0.10% -3.20%
Tarragindi $1,170,000 -0.87% -3.90%
Stafford Heights $876,750 0.34% -4.20%
Chermside West $860,000 -3.53% -4.20%
Holland Park $1,100,000 4.54% -5.20%

UNITS

Suburb Median unit price Quarterly growth Annual growth
Holland Park $560,000 0% 12.00%
Ashgrove $601,000 9.90% 10.80%
Ascot $580,000 2.36% 10.50%
Teneriffe $740,000 2.94% 7.10%
Wilston $550,500 0% 6.60%
Cannon Hill $505,000 4.71% 6.30%
Wavell Heights $455,000 5.88% 5.20%
Taringa $510,000 6.66% 4.70%
Stafford $440,000 -0.25% 2.30%
New Farm $735,000 -6.75% -2.00%
Keperra $499,000 - -12.80%
Highgate Hill $690,000 -14.10% -18.30%
Mansfield - - -
Tarragindi - - -
Stafford Heights - - -
Chermside West - - -

Best suburbs in Brisbane by rental yield

HOUSES

Suburb Vacancy rate Weekly rent (houses) Annual rent growth Rental yield
Stafford Heights 0.88% $595 12.30% 3.60%
Chermside West 0.58% $585 10.40% 3.60%
Keperra 0.71% $550 10.00% 3.60%
Mansfield 0.54% $612 14.40% 3.40%
Stafford 0.88% $562 13.60% 3.30%
Wavell Heights 0.78% $630 14.50% 3.20%
Cannon Hill 0.86% $600 11.10% 3.10%
Holland Park 0.74% $600 3.90% 3.00%
Wilston 1.00% $730 -1.40% 2.90%
Tarragindi 0.55% $650 13.00% 2.90%
Ashgrove 0.69% $720 10.80% 2.80%
Ascot 1.45% $1,000 13.60% 2.70%
Taringa 0.79% $650 11.10% 2.60%
Highgate Hill 0.95% $720 17.10% 2.30%
New Farm 1.20% $1,100 27.20% 1.75%
Teneriffe 1.61% $1,000 8.10% 1.51%

UNITS

Suburb Vacancy rate Weekly rent (unit) Annual rent growth Rental yield
Stafford 0.88% $425 1.20% 5.20%
Wavell Heights 0.78% $425 13.30% 5.20%
Cannon Hill 0.86% $520 10.60% 5.10%
Chermside West 0.58% $575 11.70% 5.00%
Taringa 0.79% $480 17.10% 4.90%
Teneriffe 1.61% $650 16.10% 4.82%
Keperra 0.71% $472 9.20% 4.70%
Holland Park 0.74% $450 11.10% 4.70%
Ascot 1.45% $490 18.10% 4.60%
Mansfield 0.54% $360 -0.70% 4.50%
Ashgrove 0.69% $460 7.00% 4.50%
Highgate Hill 0.95% $420 6.30% 4.40%
Wilston 1.00% $425 11.80% 4.20%
Tarragindi 0.55% $357 23.30% 4.00%
New Farm 1.20% $490 11.40% 3.96%
Stafford Heights 0.88% - - -

 

Here, they’re listed in order of the highest to the lowest median house price, revealing data from Domain.Com.Au and RealEstate.Com.Au.

1. Teneriffe

Teneriffe

Median property price: $3.05 million

Total population: 12,534 & 5,341

Average age: 20-39

When they said property is as safe as houses, they were probably thinking about Teneriffe.

This incredible inner-city suburb has all the ingredients for a bulletproof investment.

It has premium lifestyle precincts, high walkability, low commute times and great school catchments, all a stone’s throw from our biggest employment hub, the rapidly expanding CBD.

2. New Farm

New Farm

Median property price: $2.63 million

Total population: 12,534 & 5,341

Average age: 20-39 

New Farm is a leafy, residential and riverside neighbourhood that is considered among the most desirable in Brisbane.

Its village vibe and wealth of conveniences, schools and transport links have built strong demand for property in this area, which holds up its high $2.63 million median house price.

3. Ascot

Ascot

Median property price: $2.17 million

Total population: 5,787

Average age: 40-59

Ascot is right in the middle of Brisbane’s two largest (and rapidly expanding) employment hubs: the CBD and the airport precinct.

While apartments have taken a back seat due to nearby oversupply issues, houses continue to go from strength to strength.

Another suburb with an iconic café strip, strong school catchment and an easy train or ferry ride into the CBD.

4. Wilston

Wilston

Median property price: $1.69 million

Total population: 3,949

Average age: 40-59

Wilston already has a real community spirit with a very strong school catchment and café strip that locals flock to.

This suburb has really gentrified over the last few years with old workers' cottages, replaced with bigger, modern contemporary homes.

Pros include a railway stop and a new Northern Busway, it is primed to take advantage of the Brisbane Airport expansion.

5. Highgate Hill

Highgate Hill

Median property price: $1.67 million

Total population: 6,195

Average age: 20-39

With a quiet neighbourhood just a stone's throw from West End, South Bank and closest to the City, Highgate Hill is probably one of the best suburbs in Brisbane.

It's peaceful with good dining options and combined with recent and upcoming infrastructure developments such as new roads, transit, schools, hospitals and other major infrastructure projects, the area creates great opportunities for businesses and investors alike.

While the whole suburb is primed for growth, the streets which fall within the catchment area for Brisbane’s best school, and those with sweeping city views are in especially high demand.

6. Ashgrove

Ashgrove

Median property price: $1.50 million

Total population: 13,046

Average age: 40-59

With a cosy neighbourhood feel, while only being four kilometres north-west of the city, Ashgrove is a convenient suburb for established professionals and families who want a little room to move without having to move too far away from the city centre.

7. Taringa

Taringa

Median property price: $1.45 million

Total population: 8,381

Average age: 20-39

Taringa is a great suburb - lovely and green, close to the city, good transport with a train station and buses plus you get all the benefits of living near a university (sporting fields, cinemas, cafes and restaurants).

The suburb is multi-generational but perfectly suits families, young working professionals and university students due to the nearby iconic schools, public transport options and entertainment precincts.

8. Wavell Heights

Wavell

Median property price: $1.17 million

Total population: 9,691

Average age: 40-59 

Another high-demand market thanks to its close proximity to many amenities and transport.

The suburb is within a few minutes of Chermside Shopping Centre and only 10 minutes travel time from the airport and CBD.

9. Tarragindi

Tarragindi

Median property price: $1.17 million

Total population: 10,793

Average age: 40-59

Tarragindi is a small suburb of just 8 streets with a strong family feel and excellent infrastructure.

The short commute to CBD via Pacific Motorway or access via bus at the Holland Park Busway is a huge bonus for those rightfully keeping ‘neighbourhood’ at the forefront of their minds.

10. Cannon Hill

Cannon Hill

Median property price: $1.12 million

Total population: 5,539

Average age: 20-39

Cannon Hill is considered one of the best suburbs in Brisbane for its real estate and lifestyle potential, with the property market has moved exponentially in recent years.

The area has good schools, a train line, and the gentrification of shopping centres and older homes.

11. Holland Park

Holland Park

Median property price: $1.10 million

Total population: 8,097

Average age: 20-39

Holland Park is widely talked about as a suburb that has the benefit of great easy access to Brisbane City while still being surrounded by amazing parklands, excellent schools, charming cafes, bars and restaurants.

12. Mansfield

Mansfield

Median property price: $1.00 million

Total population: 8,695

Average age: 40-59

Thanks to great infrastructure and high demand for school catchment areas, Mansfield is one of the most sought-after pockets in the south-eastern suburbs of Brisbane.

Local commercial and retail development and expansion in Mt Gravatt also primes the suburb for more growth in future.

13. Stafford

Stafford

Median property price: $920,000

Total population: 9,552

Average age: 20-39

Stafford is surprisingly close to everything from choices of shops, schools, and hospitals, to the city and transport making the suburb extremely easy to live in and get around.

Combined with it being a notoriously high-demand market with consistent property price growth, it's no wonder the suburb is at the top of so many investors’ lists.

14. Stafford Heights

Stafford Heights

Median property price: $876,750

Total population: 6,821

Average age: 20-39

Just over the hill from big brother Stafford, this suburb has started to hit it off with families and investors alike.

With a number of retirees moving on and government housing hitting the open market, professional couples and families started to take over and put some money into the area, spending big on their homes and transforming the neighbourhood into a more desirable one.

15. Chermside West

Chermside West

Median property price: $860,000

Total population: 6,449

Average age: 40-59

Chermside West offers the best of both worlds: it's close to retail and business hubs, but it also offers a quiet retreat from its busier neighbouring suburbs.

Add to that two major Hospitals and a strong school catchment, you start to understand that it has strong investment credentials.

16. Keperra

Keperra

Median property price: $816,500

Total population: 6,791

Average age: 20-39

Arguably the most valuable of any Brisbane suburb, with a strong community feel and still very low-key.

This suburb has awakened since a number of train stations have been planned for the area, better connecting it to greater Brisbane.

Limited stock of property and quick property sales has also imposed a demand which will only continue to push up prices for properties.

Buying Property

So which suburbs are the best in Brisbane for investing in property?

Let me make one thing clear…

There might be a lot of talk about certain property ‘hotspots’ which are said to guarantee investment return.

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Note: There is no such thing as a hotspot!

I don’t believe in hotspots or investing in an area just because it is expected to be the “next best thing”.

“Hotspots” tend to be next year’s “not-spots” and as a long-term investor, I base my decisions on fundamentals.

I do not gamble.

My approach to this list of top Brisbane suburbs for 2023 is to highlight strong and stable suburbs that have shown both consistent historical growth and also have the right demographics to suggest future long-term growth.

Therefore, providing a macro strategy about the top Brisbane suburbs for 2023 is not as easy as it sounds.

So, let’s approach this with the following expectations:

  1. The suburbs I have featured have all been strong and stable suburbs that have both shown consistent historical growth but also have the right demographics to suggest future long-term growth.
  2. The suburbs I feature are all located within the inner-middle rings of Brisbane so that we can avoid any hot-spotting or speculative investing. These are all proven investment-grade suburbs.
  3. Yes, there are some suburbs outside of this list that have shown higher short-term growth but the suburbs listed are long-term performers based on a number of metrics intended for safe and long-term growth, not a short-term and risky “get rich quick” approach.
  4. Every client I see may be provided with a different recommendation based on their circumstances and personal goals

20 Min Neighbourhood

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Note: Neighbourhood is now more important than ever!

The ability to work, live and play all within 20 minutes reach is the new gold standard desirable lifestyle.

And this ‘ultimate goal’ is now more important than ever thanks to our new “Covid Normal” world.

If social distancing and the Covid-19 environment have taught us anything, it has taught us the importance of the neighbourhood we live in.

If you can leave your home and be within walking distance of, or a short trip to, a great shopping strip, your favourite coffee shop, amenities, the beach, or a great park, the recently implemented coronavirus restrictions might seem a little more palatable than if you had none of that on your doorstep.

But the reality is, this concept is nothing new.

In fact, the rise of the 20-minute neighbourhood started long before Covid-19.

You will find these are often in the gentrifying aspirational lifestyle suburbs of our capital cities and people will pay a premium to either own a property in these locations or rental property in these locations.

Many inner suburbs of Australia’s capital cities and parts of their middle suburbs already meet a 20-minute neighbourhood test while very few of the outer suburbs would do so - that’s why this is focused on Brisbane’s inner middle ring suburbs.

Demographics

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Tips: Follow the demographics!

According to leading demographer Bernard Salt, the coming of the coronavirus has changed the Australian workforce and not just by prompting adaptation to new technology like Zoom calls and triggering a work-from-home movement, but also by rigidly dividing the nation according to skill sets.

The Australian Bureau of Statistics classifies every job according to one of five skill levels with Skill Level 1 being the most skilled.

It is well recognised that the rich – such as people with a skill level 1 job - are getting richer, and at the other end of the spectrum, skill level 5 jobs requiring little or no previous work experience (like general sales assistant, kitchen hand) are experiencing no wages growth.

A skill level 1 job requires a bachelor’s degree or higher, or the equivalent of at least 5 years’ training.

People with these types of jobs will earn more income and be able to afford to pay more for their properties.

The pandemic demands skills in finance (accounting), risk management (solicitors), computer programming, and many other skill-level-1 jobs.

However, the story of the balance of the workforce has been quite different.

So understanding where the skill level one worker lives in Brisbane is critical.

ALSO READ: Brisbane’s property market forecast

About Brett Warren is Director of Metropole Properties Brisbane and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their build their wealth through property.
11 comments

Thanks Brett, Wonder, what's the outlook for Redbank Plains? Luxmy

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Why do you continually put that Tarragindi is a small suburb of just 8 streets...??? As resident of rue suburb since 1994 I can assure that is simply not true.. https://geographic.org/streetview/australia/qld/tarragindi.html

1 reply

Thanks Brett, Just a quick question to see if any reason Kedron was left out given it’s wedged right in between Stafford/SH/CW/Wavell etc? Appreciate your thoughts!

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