10 best suburbs in Brisbane to invest in 2021-22

TERRY RYDER
Find out which suburbs in Brisbane made the top 10 list in Canstar’s Rising Stars Australian Property Market Report powered by Hotspotting.

The Brisbane property market is only just starting to respond to a marked improvement in the fundamentals which will eventually make the Queensland capital one of the strongest markets in the nation.

The population data on interstate migration makes Queensland, especially South-East Queensland including Brisbane, the national leader. Brisbane benefits from the affordability comparison with Sydney and Melbourne, it scores highly on its control of the pandemic and it rates well for its agreeable climate.

Its success in securing the 2032 Olympics is a game-changer that will enhance the current infrastructure boom and we suspect increasing numbers of home buyers and investors will want to buy a piece of Brisbane.

This is translating into significant increases in sales activity, an improvement in the previously high vacancy rates and growing signs of rental growth. Prices are now responding but not yet as strongly as we believe they will.

Brisbane’s potential for future price growth, now being boosted by elevated infrastructure spending and a major uplift in sales activity, is greatly enhanced by the affordability comparison with the two biggest cities – Sydney and Melbourne.

Brisbane’s median house price at 1 October 2021 was $709,000 while the median house price was $962,000 in Melbourne and $1,311,000 in Sydney. At $430,000 Brisbane’s median apartment price is almost half of that in Sydney ($825,000).

As the spotlight falls increasingly on Brisbane, thanks to everything the Olympics will unleash, there is potential for growth to close the price gap with the larger cities.

 

SandgatePier
Sunrise at the Sandgate Pier in Brisbane. Image source: Kyrle Spillane/Shutterstock.com

The 10 best suburbs in Brisbane to invest in

  • Annerley
  • Caboolture
  • Carindale
  • Cleveland
  • Eagleby
  • East Ipswich
  • Kippa-Ring
  • Mitchelton
  • Paddington
  • Sandgate

Research suggests that suburbs close to the main Olympic venues show the greatest price uplift. If that is true, the inner southern suburb of Annerley should do well. It also benefits from its proximity to the Princess Alexandra Hospital, the University of Queensland and the Pacific Motorway. Vacancies are low, sales activity is rising and there has been a particularly strong price uplift in the latest quarter, taking the median house price to $825,000.

The inner-city suburb of Paddington has enduring popularity as a place with character homes and a trendy lifestyle. Rents are rising strongly, as are sales volumes, with prices starting to take off in the latest quarter (median price $1,265,000).

Middle-ring areas on the eastern side of Brisbane have been doing well in 2021 and the latest to put its hand up is Carindale (median price $980,000), a well-regarded suburb with good infrastructure. Vacancies are 1%, rents are surging, sales demand is up and prices are starting to react.

Middle-market areas on the northside are consistently among the strongest in Brisbane and there has been particularly strong momentum in sales activity here in 2021. Mitchelton ticks a lot of boxes for amenities and infrastructure, rents are responding to low vacancies and prices are surging on the back of increased sales activity (median price $745,000).

Another popular northside middle-market suburb is Sandgate, where the median price is $865,000 after recent good growth. This bayside area consistently attracts big demand from both tenants and buyers, with rents and prices starting to take off. A commuter train station and easy access to the Gateway Motorway are part of the appeal.

A little further north, the Redcliffe Peninsula is starting to fulfil its potential as a lifestyle enclave on Moreton Bay. Train links to central Brisbane have recently been added to the infrastructure mix, with the suburb of Kippa-Ring the most direct beneficiary. Low vacancies, rising rents, increased sales activity and big price uplift in the latest quarter all provide evidence of an ascendant market, but the median price is still just $475,000.

The affordable north provides many appealing options for buyers, headed by the nerve centre suburb of Caboolture, which offers much in the way of infrastructure, as well as affordable housing (median price $385,000). Sales levels have trebled in this suburb in the past 12 months and prices are on the move. Caboolture also has one of the lowest vacancy rates in Brisbane, with rents rising strongly.

Logan City, which provides the urban bridge between Brisbane City and the Gold Coast, has become one of the nation’s busiest markets. Most suburbs have strongly rising sales activity, including affordable Eagleby (median price $325,000) where sales volumes have quadrupled in the past 18 months. Inevitably, prices are on the rise.

Sales activity has exploded in Ipswich City in the past six to nine months and most suburbs have recorded exponential rises in buyer demand. East Ipswich has a commuter train station, sits beside the Ipswich CBD and offers a high level of affordability (median price $315,000). There have been big price rises in the latest quarter on the back of rising buyer demand, while rents are responding to vacancies well below 1%.

Redland City is perhaps Brisbane’s most underrated market, but it’s becoming increasingly popular for its variety of hill change and sea change options. Sales volumes in the bayside suburb of Cleveland have doubled in the past 12 months and price growth is gathering speed (median price $685,000). The vacancy rate here is closer to zero than to 1%.

The 10 best suburbs in Brisbane to invest in

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Suburb Median house price 1-yr growth 10-yr average
annual growth (%pa)
Vacancy rate Median
rental yield
Annerley $825,000 7.7% 3.6% 1.0% 3.2%
Caboolture $385,000 11.9% 2.0% 0.5% 4.5%
Carindale $980,000 11.3% 3.7% 1.0% 3.3%
Cleveland $685,000 11.4% 2.9% 0.3% 3.7%
Eagleby $325,000 11.1% 1.6% 0.8% 5.3%
East Ipswich $315,000 12.7% 2.4% 0.7% 5.0%
Kippa-Ring $475,000 10.5% 3.1% 0.7% 4.3%
Mitchelton $745,000 16.1% 3.6% 0.6% 3.3%
Paddington $1,265,000 3.4% 4.9% 1.6% 2.6%
Sandgate $865,000 18.2% 5.0% 0.8% 3.0%

Sources: Median price, growth and rental yield: CoreLogic data sourced from yourinvestmentpropertymag.com.au dated 1 August 2021. Vacancy rates: SQM Research as at September 2021.

 

Cover image source: Bank09/Shutterstock.com


Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.

 

 


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