Your complete pocket guide to the Brisbane market, including the best suburbs to invest in Brisbane 2020 and beyond.
Brisbane Market Review 2019: 2019 was a year of resurrection lead by Sydney and Melbourne in the second half of the year thanks to the Coalition election win, lower interest rates and removal of lending restrictions.
Brisbane Property Market Forecast 2020: 2020 forecasts in Brisbane present a mixed bag from the top analysts with a growth of around 3% for houses and stagnation for units being the average prediction, however many analyst expect it to be the national leader over the next three years.
Why Are Investors Considering Brisbane: Affordability, future economic prospects and liveability are all contributing to an influx or interstate migration and investment and are putting Brisbane at the top of investor watchlists
Brisbane Rental Market Overview: Brisbane’s rental market is predicted to rise from the median rents of $463p/w for houses and $376p/w for units. SQM Research predicts a growth of 3-5% in 2020 which is good news for landlords. The growth is expected to be impacted by unit development slowing and populations rising.
Best Suburbs to Invest Brisbane 2020 Predictions: Highgate, Chermside, Logan Reserve and Ripley are all on the radar.
A new year and a new decade is upon us and the recovery of late 2019 continues to offer plenty of opportunity across the nation. For those investors looking for affordable investment opportunities, Brisbane continues to have plenty to offer, with large growth predictions continuing to sit on the horizon. The best suburbs to invest in Brisbane for 2020 are looking to be dispersed across a number of key locations, with modest growth likely to be the story of the year, with stronger growth predicted to be seen in 2021.
Before we dive into the best suburbs for investing in Brisbane in 2020 and beyond, you are best to enjoy an overview of the Brisbane market over the past year. We will also take a look at how it’s looking today and what it’s predicted to do over the next year. The disparity between Brisbane and Melbourne’s median is the largest it has been in some time leaving many analysts to believe a Brisbane price jump is more a matter of when than if.
The Australian Property Market of 2019 can be split directly in the middle in terms of national performance. The continued decline of the first half, followed by a second-half turnaround thanks to a number of factors that landed in favour of a recovering market. The biggest factors that contributed to the resurrection lead by Sydney and Melbourne were:
The RBA’s consecutive interest rate cuts opening-up options to first-home buyers and investors
Renewed buyer and seller confidence following the coalition’s election victory
Relaxed lending restrictions from APRA allowing a bottleneck of would-be buyers to enter/ return to the market
Property Prices at a 3 year low
Despite the recovery, Brisbane surprised analysts and investors by continuing a stubborn stabilisation, seeing little change in median prices either up or down in 2019. Despite the unimpressive performance, a number of suburbs in Brisbane did perform respectably including our number one pick for last year Highgate Hill, which recorded a median unit growth of +3.12% in 2019 and median gross yield is 3.9% and Logan Reserve topping the Southern suburbs with growth of 6.22% in 2019.
Why Are Investors Considering Brisbane?
The answer to whether Brisbane offers the best investment opportunities across the country depends on what your objectives are. A major reason Brisbane and South East Queensland are currently quite attractive is affordability. As you will see below the median predictions for this year may be modest but over the next 2-3 years are quite a bit more impressive with more than one analyst predicting Brisbane to be the top performer nationally over the next three years.
To give you an idea of why more investors are turning to the Brisbane market is the undeniable fact that you can currently get a lot more bang for your buck. Brisbane property prices are around half of Sydney’s current prices and haven’t moved much in the past decade. However, household incomes are only around 11% lower than Sydney’s. This obvious discrepancy makes Brisbane a greatly attractive destination and is the reason South East Queensland is the leader for interstate migration amongst families and down-sizers.
Another big tick for Brisbane that has contributed to it becoming an analyst favourite over the coming years is the combination of livability and future economic prospects thanks to plenty of infrastructure projects that are changing the face of the city and will begin to offer a large quantity of employment opportunities, which is always good news for property growth. When narrowing in on the best suburbs for investment in Brisbane the most successful investors are always keeping an eye out for factors that will ensure constant demand which make it’s numerous infrastructure projects and increased population highly attractive when evaluating the next purchase.
Brisbane Property Market Forecast 2020
The general consensus for 2020 is a year of modest growth of 3% and more significant growth in 2021 and beyond, however Brisbane’s near decade long stagnation has to come to an end at some point according to many analysts. Two big hurdles the Greater Brisbane market needs to overcome for significant growth are it’s elevated unemployment rate which hit 6% in Queensland and a continuation of the saturated apartment market, however it’s comparative affordability to Sydney and Melbourne and plentiful infrastructure programs mean growth is inevitable and is merely a matter of when.
There is a pretty large disparity in predictions across the board and The Researcher isn’t in the business of cherry-picking so let’s take a look at the Brisbane 2020 forecasts from four of the country’s leading analysts. Remember when it comes to determining the best investment suburbs for Brisbane that whilst the average is projected to be moderate a number of suburbs are primed and ready for respectable performance.
The general consensus for 2020 is a year of modest growth with the potential for more significant growth in 2021 and beyond. Two big hurdles the Greater Brisbane market need to overcome for significant growth are it’s elevated unemployment rate which hit 6% in Queensland and a continuation of the saturated apartment market.
There is a pretty large disparity in predictions across the board and The Researcher isn’t in the business of cherry-picking so let’s take a look at the Brisbane 2020 forecasts from four of the country’s leading analysts.
CoreLogic – Moody’s Analytics
The Analysts at Moody analytics predict the lowest growth across the Brisbane housing market with 1.9% for 2020 and 2.3% for 2021 but have one of the highest year on year predictions for units at 5.8% for 2020 and 5.3% for 2021. Moody Analytics believes Brisbane’s unit oversupply is set for a nation-leading absorption, with population growth in the CBD increasing demand.
On the housing front they predict far more modest growth for 2020 with a slightly higher rise next year.
BIS Oxford Economics
By far the biggest proponents of a flourishing Brisbane market over the next three years, BIS have been predicting a dramatic increase in Brisbane’s market both across houses and units with a 20% median growth for houses predicted between 2019 and 2022.
QBE’s forecast lands somewhere in the middle as far as housing, forecasting 3.6% growth this year and 6% in 2021, predicting a June 2021 median of $615,000. On the flipside, QBE doesn’t hold Corelogic-Moody’s apartment sentiment predicting a decline of 2.4% in 2020 and holding firm with 0% in 2021.
He believes numerous economic factors including unemployment will keep growth limited, as well as a continued influx of apartments.
Factors That Could Affect The Market
Towards the end of last year SQM Research released a multi-scenario forecast that predicted growth across the country based on the four most likely scenarios given current circumstances. Whilst we won’t dive deep into the potential outcomes in this article it is certainly worth a mention. The below graph shows four potential scenarios that are the most likely to play out this year, basically in 3 of the 4 scenarios Brisbane is predicted to present growth of around 5%.
Brisbane Rental Market Overview
Brisbane has had to overcome a saturated unit market which has been to the detriment of landlords. However, SQM Research believes 2020 will be a year of dropping vacancy rates as we see steady population growth, currently predicted at 1.75% and should only increase over the next decade.
SQM forecasts rents in Brisbane to jump as much as 5% in 2020. Currently median rents are $463 for houses and $376 for units, so potentially great news for investors. If unit supply does tail off as expected and demand increases the combination with population growth could certainly have positive effects on the rental market.
That gives you a quick overview of the current state of affairs in Brisbane, so now for the good bit. Which suburbs are set to exceed expectations over the coming year?
Best Suburbs to Invest in Brisbane 2020 Forecast
Despite modest forecasting as far as Brisbane’s median, when it comes to the best suburbs for investing in Brisbane for 2020 and further into the distance that their are plenty of suburbs showing great growth potential and performed well in 2019 despite many that did not. Key factors like sort after schools, convenient public transport, great amenities, local jobs and lifestyle opportunities make some suburbs much more appealing to investors than others. The below suburbs offer different opportunities to different investors based on current circumstances and future objectives but regardless of where you are in your journey this list will give you plenty to think about.
Where to Invest in Brisbane Watch list
Source: Graph Data based on statistics by CoreLogic. Data is current as of Nov 2019.
Best Suburbs Brisbane Inner City
Given the still saturated apartment market Brisbane’s Inner city is heading the way of it’s Southern counterparts and not offering much in the way of investor value. Moving slightly out our two front runners for 2020 and continuing into the next five years are Highgate Hill and Paddington.
Highgate Hill reported some very respectable growth in 2019 jumping over 10% growth for houses and a respectable 3.2% for units with a median unit gross 3.9% which is even more impressive given the poor performance of many other Brisbane suburbs and particularly the unit market. For those that can afford to buy up in Highgate Hill we see prices holding and continuing to rise given it’s proximity to the CBD and great lifestyle options.
Paddington has been an investor gem for years with it’s cultural and lifestyle offerings as well as it’s close proximity to all Brisbane’s inner-city action, rental properties in Paddington never last long. Paddington has offered a steady median price gain over the past 5 years with a capital gain of over 15%. Entry into Paddington is certainly on the upper end for Brisbane at $1,160,000, however, offers a relatively stable investment for those with the buying power who aren’t concerned about cash flow.
Also keep an eye on Ashgrove, Dutton Park and Auchenflower all within 4km.
Best Suburbs to Invest in Brisbane’s Middle Ring
Located within 4km of the city, Annerley is beginning to gain attention after being outperformed by neighboring suburbs like Highgate Hill and Dutton Park. Annerley offers great access to employment and education and still has some great value property on the market.
Far enough away from the Westfield to avoid all the commotion and close to enough to reap the benefits Chermside West should definitely be on the watch list. A gentrifying suburb seeing an influx of young professionals targeting the in-demand Craigslea State School catchment. The suburb has also seen a rise of 36% over the past five years. With so many lifestyle, employment and education draw cards it is a watch list location undoubtedly.
Also keen an eye on Mount Gravatt, Holland Park, Cannon Hill and Wilston.
Best Suburbs to Invest in Brisbane Outer Suburbs
Keperra is a very real entry-level option thanks to mid range property prices and very similiar demographics and draw cards to Chermside West. Keperra offers plenty of amenities allowing residents to stay close to home and also has a train station which always adds immense value to renters. Brisbane’s average over 5 years is 25% and Keperra has pushed forward with 30%.
There is a lot to like about Ripley. We covered the suburb back in 2018. Ripley is situated in the key Western Growth corridor benefiting from the growth of Ipswich and Satellite City Greater Springfield. Ripley has been pinpointed by Corelogic as a key growth suburb since 2018 and has benefited from a Billion dollar town centre and future rail station. Ripley is a rare opportunity and will continue to stay on our radar for years to come as it offers both cash flow and capital growth opportunities when it’s usually a matter of one or the other.
Also keep an eye on Kurwongbah, surrounding suburbs and Logan Reserve.
The Researcher’s Wrap Up
Hopefully this gives you a bit of ammunition to really explode with your next purchase and a better idea of what some of the best suburbs to invest in Brisbane are for 2020. There is plenty to be excited about in Brisbane over the next few years and there are certainly very valid reasons a number of analysts are getting so excited. We will continue to follow Brisbane’s progress throughout the year.
That wraps things up for now, but be sure to become a subscriber to stay in the know as we update this article with any updates throughout the year.