Property investors from Australia and abroad have driven a real estate boom in Brisbane and its surrounding suburbs. The number of suburbs posting double-digit price increases has almost doubled over the last six months, from 18 to 35 according to PRD Nationwide’s recently released Brisbane Hotspots report.
This is a significant change for a city that’s annual growth normally sat between 3 and 5 percent, “and maybe 7 percent if you’re lucky,” according to Asti Mardiasmo, PRD Nationwide’s national research manager.
“Whether it’s inner western, eastern, what have you, there are now suddenly all these suburbs that have double-digit growth that they’ve never seen before,” Dr Mardiasmo said. “It’s kind of going nuts.”
PRD Nationwide noted areas with the greatest growth include McDowall (16 percent growth in unit prices), Durack (13.6 percent growth in house prices), and Murarrie (18.1 percent growth in apartment prices in the last 12 months).
Some suburbs have also shown a dramatic reversal of fortune. For example, just six months ago, the price of units in Coorparoo was falling by 6 percent. Today these prices are increasing at a rate of 10.7 percent.
While Brisbane property prices are increasing, they are still competitive against many state capitals. The median house price in Brisbane jumped to $610,000 in the June quarter, compared to $671,000 in Melbourne and $1 million in Sydney. Brisbane rental yields are also the highest of any Australian mainland state capital, with 4.4 percent on houses and 5.4 percent on apartments, according to CoreLogic.
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