Ever wondered what are the top performing Brisbane suburbs for capital growth?
The Domain Group has recently released a list of the top performing Brisbane suburbs over the last decade.
And the winners are…
But, how does that compare to the Brisbane averages?
Well back in 2008, the median Brisbane house price was around $420,000.
Now fast forward to 2018 and it peaked around $540,000.
An increase of only 28.6%.
You see… it was a very disappointing decade for the Brisbane real estate market as it battled a number of headwinds:-
- 2008-09 The Global Financial Crisis
- 2011 The Brisbane Floods
- 2013-14 The Mining Downturn
These factors resulted in a significant decline in employment and job opportunities and with that, the number of people moving to the Sunshine State from interstate and overseas plummeted!
In fact the bulk of the capital growth has occurred within the last 3 years as we returned to some normality.
So back to my original question, what can we learn from this list?
1. Distance from the CBD
Almost all of these suburbs fall within the 10-12km ring from the Brisbane CBD.
Simple – this is where most of the new jobs growth lies
You will also notice that a number of these suburbs are the more affluent locations.
On average, you will find that wages in these suburbs are generally up to twice as much as the average wage for the rest of Queensland.
This is important to consider as this demographic can pay more for property as they have higher wages, more savings and often multiple streams of income.
They also tend to overcapitalise substantially with renovations and new homes and this keeps upward pressure on prices.
3. School Catchments
School catchments are becoming like magnets to families, especially as cost of living (including school fees) continue to rise.
The ability to live in a high demand location and send your kids to a top performing public school while paying next to nothing for school fees becomes more appealing by the day.
- Convenience / Liveability
These top suburbs also have access to lifestyle precincts, public transport, green space and amenities all usually within walking distance.
People don’t want to spend more time in their cars just to grab a coffee or have a meal out.
There is increasing demand from buyers to find locations where everything they could ever want is within a short walk.
The concepts I’ve just outlines are not something new.
They are the key drivers that increase demand for properties and will continue to do so for decades to come.
While they should be well understood by property investors I am often surprised by how many people want to reinvent the wheel.
Our system is too simple for them.
So they look for the next hotspot (that rarely eventuates) or outer areas or even more cash flow.
Fast forward ten years and I would almost be certain that nearly all of these suburbs will be where they are today – significantly outperforming the Brisbane average.
The equation has and will be the same moving forward, you should embrace these concepts and create more wealth for you and your family.
See you in a decade!
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