Brisbane home values are on track to reach a new record high in the first few months of the new year, according to a leading property analyst.
House values in the Queensland capital have bounced back 2.2 per cent since finding a floor in June, in line with a national housing market correction.
And CoreLogic’s head of research Tim Lawless expects prices to continue to head north in 2020.
Looking back at the year, top gongs can be awarded to a number of suburbs for being the best of the best in 2019.
More money changed hands for apartments in Surfers Paradise than anywhere else in the country in 2019, with unit sales totalling a whopping $498 million.
And Camp Hill, in Brisbane’s inner south, recorded the highest value of house sales in the city at $224 million.
Teneriffe had the most expensive houses in Brisbane, with a median house value of $1.7 million, while Kooralbyn in Logan recorded the lowest median house value at $97,919.
The outback Queensland town of Blackall recorded the highest gross rental yield in Australia at 15 per cent, while also having the lowest median weekly advertised rents in the country at $160.
Cunnamulla has the cheapest houses in the country, with a median house value of just $36,387.
Mr Lawless said Brisbane’s housing cycle had been mild relative to Sydney and Melbourne, with values rising roughly in line with inflation over the past five years and down only 2.9 per cent from their April 2018 peak.
“Values were only 0.8 per cent below their recent peak at the end of November, suggesting dwelling values are likely to reach a new record over the first few months of 2020 based on the current trend in growth,” Mr Lawless said.
“With the previous oversupply in new units now largely absorbed, Brisbane’s unit sector is
once again contributing to positive growth conditions.”
Mr Lawless said Brisbane’s housing affordability, together with rapid population growth, should support an improvement in market conditions through 2020.
“Outside of Brisbane, it’s the coastal markets that are showing the strongest growth trajectory heading into 2020, particularly the Sunshine Coast and Gold Coast regions situated to the north and south of Brisbane,” he said.
“Demand for lifestyle properties, especially those with some depth to the local economy, within easy commuting distance to Brisbane and close to a major airport, are likely to increase in popularity.
“Other Queensland lifestyle and tourism markets are also showing some upside for 2020, with housing values across Cairns, Mackay/Whitsundays and Wide Bay trending higher through late 2019.”
Local developers Nancy and Mick O’Gorman, of Manasons Properties, have lived in Camp Hill for a decade and are not surprised the suburb’s housing market saw so much money change hands in 2019.
“It’s the reason our business focuses on (Camp Hill),” Mrs O’Gorman said.
“We figure if we love it this much, everyone else will.”
The O’Gormans are selling a four-bedroom, two-bathroom house they have built at 25 Arrol St, Camp Hill.
The property is for sale with Savva Koulouris of Place – Woolloongabba for offers over $1.195 million.
“It’s close to the CBD, a stone’s throw from the airport, surrounded by fantastic schools, very safe, and it’s still got tremendous access to parklands nearby.
“And although it’s incredibly inner-city, it doesn’t feel like it.”
McGrath Estate Agents Queensland manager Justin Marsden said interstate migration would continue to impact the state market in 2020.
Mr Marsden said it was likely to become harder for first home buyers to find an affordable property close to the city as the Brisbane market matured.
“In the 10 to 20 kilometre range, there are still great entry-level opportunities,” Mr Marsden said.
“Suburbs that sometimes get overlooked in the under $500,000 category, in strong growth corridors, where first home buyers can still find those opportunities are Thorneside in Redland City — a waterside suburb, which has older homes often in need of some renovation.
“On the city fringe you will find Moorooka, Acacia Ridge, Archerfield, Coopers Plains and Rocklea, where there are a range of opportunities from already updated homes, renovators and properties with sub-division potential.”
QUEENSLAND’S BEST OF THE BEST IN 2019
Suburb Achievement Value
- Blackall Highest gross rental yield in Australia 15%
- Lowest median weekly advertised rents in Australia $160
- Cunnamulla Lowest median house value in Australia $36,387
- Surfers Paradise Highest total value of sales in Australia $498.2m
- Russell Island Lowest median house value in Brisbane $207,411
- Teneriffe Highest median house value in Brisbane $1.7m
- Highest median unit value in Brisbane $607,379
- Highest median weekly rents for houses in Brisbane $519
- Kooralbyn Lowest median house value in Brisbane $97,919
- Rocklea Lowest median house value within 10km of CBD $397,273
- Hawthorne Greatest 12 month change in house values 6%
- Greatest five year change in house values 5.1%
- Spring Hill Lowest median unit value within 10km of CBD $336,043
- Mitchelton Greatest 12 month change in unit values $408,745
- Wynnum West Greatest five year change in unit values 3.4%
- Kilcoy Highest gross rental yield for houses 6.8%
- Edens Landing Highest gross rental yield for units 8.1%
- Ascot Highest median weekly rents for houses $900
- Lamb Island Lowest median weekly rents for houses $245
- Sandgate Lowest median weekly rents for units $260
- Camp Hill Highest total value of house sales $224.8m
- Brisbane City Highest total value of unit sales $218.4m