Inner Brisbane Returns Better Value Compared to Coastal Cities

Queensland has experienced a significant increase in both interstate investment and migration over the past 12 months, recording the highest annual population growth of all the states. South-East Queensland has become the epicentre of this growth, with Brisbane’s neighbouring Coastal Cities showcasing some of the best performing property markets in the country as more Australians make the lifestyle move to the Sunshine State. In this article, we explore how Brisbane is faring in comparison to our coastal counterparts, and why the River City can no longer be overlooked as a lucrative place to live, rent or invest in.

Buying

Whilst Brisbane property prices have experienced considerable growth over the past 12 months, they remain affordable in comparison to the likes of the Gold and Sunshine Coasts. Currently sitting at a median of $691,214 for houses and $425,777 for units, an apartment in Brisbane costs on average $125,000 less than a comparable property on the Sunshine Coast, highlighting the considerable difference in bang for your buck. Brisbane apartments have recorded a steady annual increase of 6%, while the Gold Coast averaged a 16% rise, and the Sunshine Coast unit market outperformed both, lifting by an impressive 21%. To put this in perspective, a year ago the median price for units on the Sunshine Coast was $450,000, which as of August 2021 is now sitting at $550,000.

Renting & Investing

As a result of the population growth and investment in South-East Queensland, there has been increased pressure put on rental prices and availability across the State. Rents in Brisbane have hit a 15-year high, but remain well below those of our coastal counterparts, offering the most affordable median rents for units and houses across the board. Brisbane’s attractive rental yields are creating a premium opportunity for investors to purchase whilst prices remain affordable and are producing median returns of 3.8% for houses and 5.2% for units. Employment opportunities created by major infrastructure projects across the City combined with the high level of interstate migration have resulted in the lowest rental vacancy rate Brisbane has seen in more than a decade, proving once again that Brisbane is the quiet achiever of the South-East Queensland property market.

The current availability, affordability and steady growth of the Brisbane property market indicate that it is an ideal investment option within South-East Queensland, but this will not be the case for very long. Ever-increasing employment opportunities, investment in major infrastructure, improved transport systems, population growth and the announcement of the 2032 Olympic Games will see the Brisbane property market continue to grow in popularity, prestige and price over the coming decade. All signs point to now being the right time to invest, with real estate experts claiming that those who take advantage of the current conditions will look back in a year and be thankful that they entered the market at this time.