Brisbane looks set to become Australia’s answer to New York, as it evolves into Queensland’s ‘city that never sleeps’. The growth in inner city high rise apartments, and the boom in the millennial generation that is occupying them, will transform the city’s night time economy over the next 24 months or so.
The managing director of National Property Research, Matthew Gross, told the Urban Institute of Australia (QLD) that, “A major benefit to Brisbane CBD and near city suburbs is that the quality of retailing, cafes, restaurants and night life will increase substantially. Brisbane will start to become a seven-day city.”
The city’s transformation is happening at an increasingly fast pace. Queens Wharf and developments in the inner ring of suburbs will provide restaurants, cafes, and recreation facilities, as Brisbane evolves into a lifestyle city.
Meanwhile, home sellers in Brisbane have turned their largest profit since the Global Financial Crisis. According to figures published in the Courier-Mail, profits made on property resales totalled $ 3.9 billion in 2015. With 94% of homeowners that sold their home last year making a profit, it seems that property prices are surging even faster than the development of inner city apartments.
Here we look at the market dynamics in three of Brisbane’s inner suburbs, all within 5km of the CBD.
Albion (4010)
The median house price has increased by 4.08% over the last year, to $ 715,000. Average weekly rental is $ 480, giving investors a gross yield of 3.49%.
The median unit price is $ 412,500, down by 7.30% over the last 52 weeks. With rent averaging $ 390 per week, investors see a yield of 4.92%.
[el]395[/el]
Red Hill (4059)
Tenants pay an average of $ 550 per week to rent a house here. Investors see a rental yield of 3.53% based on the median price of $ 810,000, which is up by 7.46% over the last year.
Average unit rental is $ 385 per week. At the median price of $ 441,500 (an increase of 4.50% over the price 12 months ago), investors will make a gross rental yield of 4.53%.
[el]402[/el]
West End (4101)
The average house rental is $ 590 per week, at which price an investor would receive a gross rental yield of 3.10% based upon the current median price of $ 991,000 (which has increased by 4.59% over the last quarter).
Tenants in apartments pay an average of $ 490 per week in rent. Based on the median unit price of $ 565,000 (down by 0.88% over the last year) gross rental yield is 4.51%.
[el]393[/el]
(Data from CoreLogic RP Data)
Phone: 07 3452 9618
Phone: 07 3452 9611
Phone: 07 3452 9610
