Latest numbers from CoreLogic RPData suggest that Brisbane is still lagging behind Sydney and Melbourne when it comes to the growth in home prices. It also shows that the Australian housing market is now valued at over $ 6 trillion; more than $ 2 trillion higher than in 2009. New South Wales and Victoria are the two states which have the highest value of housing (38% and 28% respectively), and Queensland has dropped its share of overall value from 19% to 14%. The report puts the growth in the price of Brisbane’s homes at 3.9% over the last year.

While Brisbane’s recent record of dwelling price growth is slow when compared to Sydney or Melbourne, this also means there is great comparative value in Brisbane’s suburbs. Affordability is higher, too, and the slower growth means that if a downturn does come, then Brisbane’s property market is likely to be cushioned from the worst effects.

However, snapshots like the CoreLogic RPData report don’t necessarily tell the whole story. While it may be true that Brisbane has yet to ‘join the party’, if we look at performance over the last decade there are several suburbs with great average numbers.

A list of Brisbane’s top performing suburbs over the last decade has been released in the Property Observer, and the top 20 have all experienced average annual price increases of 6% or more. An investor buying in one of these suburbs ten years ago would also have benefitted from rental income that has increased every year and now stands at around a gross yield of 4.5%.

Compare that to the Australian stock market that has grown in value by about 1.5% per year over the last ten years and paid an average dividend yield (income) of less than 2%, and you get an idea of just how well property investors have done when compared to stock investors.

Here we look at the three best performing Brisbane suburbs over the last decade, as stated in the Property Observer article.

Hendra (4011)

The median house price, at $ 809,250, has increased by 3.48% over the last year. The average weekly rental is $ 555, which equates to a gross rental yield of 3.57%.

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Newmarket (4051)

House prices have performed better than unit prices over the last 12 months. The median house price has increased by 6.45% to $ 742,500, while the median unit price is down by 6.04% to $ 427,500. However, while an investment in a house would currently pay average weekly rental of $ 528 (a yield of 3.69%), the average weekly rental of $ 400 on a unit provides a higher yield of 4.87%.

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Gordon Park (4121)

The median house price in Gordon Park has increased by 8.73% over the last year to $ 710,000, while the median unit price has increased by 3.17% to $ 388,950. Investors at these prices can expect an average rental on a house of $ 490 per week and on a unit of $ 360 per week – respective yields of 3.59% and 4.81%.

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