Here’s the transcript:
Kevin: I had a suggestion during the week from Craig who suggested we do a segment on our show and we’re calling it our ‘Experts Spotlight’ where we have a look at a particular area that an expert is pretty keen on and we find out why they are in fact keen on that area.
To kick the segment off, the first person to make comment will be Shannon Davis from Metropole Properties Strategists in Brisbane.
Shannon, thanks for your time. Tell us about the area that you’ve chosen.
Shannon: I’ve chosen Kedron on Brisbane’s north side, specifically the areas around the Padua precinct, the avenues and around there.
Kevin: What’s drawn you to that area?
Shannon: There are good schools. There’s transport. There’s access to shops and lots of employment. Also the new tunnels bring it closer to the CBD and airport. There’s lots to like about it.
Kevin: Have the tunnels added value to an area?
Shannon: It’s too soon to tell. What I like about it is it brings it closer to the CBD and to the airport and they’re the biggest employers in any city.
It’s good to be near employment hubs. Where the tunnels are placed won’t hurt Kedron.
Kevin: One of the things you mentioned there about the Kedron area is good schools. Do you think it’s an area that will attract families?
Shannon: Yes – families, professional families with young children. Houses and townhouses are definitely the better properties to be buying in this area.
Kevin: I was going to ask you what type of property you’d recommend an investor should look at. Are there many units in that area?
Shannon: It’s not without units, but I wouldn’t recommend buying apartments there. I prefer houses and townhouses in that area.
Kevin: What is it that holds that area up from being a good area to invest in say a unit?
Shannon: The smaller the dwelling, the more important the location around it. I think you need more café strips and amenities.
Kedron may get that more into the future, but for now I look at the young families, the children, and living close to work into the CBD or the airport, but also the schools in the area.
Kevin: Let’s drill down on a few numbers for Kedron. What are the medians in the area?
Shannon: About $600,000 for a house and $360,000 for a unit. Just to give you a comparison, it’s about $480,000 for a house in Brisbane and $370,000 for units in Brisbane.
Kevin: And the returns in Kedron?
Shannon: The land value is creeping up all the time to about $450,000 for a vacant block.
I think the best returns lie where you can buy existing house and add value through renovation. There’s also lots of subdivision going on in Kedron.
Or you might get yourself a bigger block, like a 607sq mt with an older post war home that you can build contemporary house on. That’s very popular these days. Some people are seeing the benefits of living in contemporary homes rather than in an old Queenslander.
Kevin: Just to round us out on the Kedron area, what about growth? What has the growth been like in the past and what are you predicting for the future?
Shannon: It’s been about 15% in the last eight quarters. Just to give a comparison to the greater Brisbane area, it’s been about 8% in that same time period.
You can see the area has outperformed. The potential growth into the future is buying where there are lots of owner occupiers good schools, access to shops and transports.
I believe that that has everything going for it in that respect. The fundamentals are right.
There are opportunities there to add value, like split a block or renovation, building new as I mentioned but also some blocks allow townhouses in a low/medium residential zoning.
Kevin: Very good advice from Shannon Davis. Thank you for your time. .
Shannon: . Any time.
Listen to the full show at RealEstateTalk.com.au and while you’re there subscribe and receive our weekly podcast (or the transcripts) where I interview Australia’s leading property experts.
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