By Terry Ryder, 29th January 2008
The latest Queensland stats confirm one of hotspotting.com.au’s most consistent arguments: that the best capital growth is usually found in the affordable suburbs.
Data from the Real Estate Institute of Queensland shows that the best value growth in 2007 – whether in Brisbane, the Gold Coast, Cairns, Townsville or elsewhere in the state – most often was found in the cheaper areas.
The REIQ says – as do we – that this is evidence that affordability is the key issue for both home buyers and investors – and they are targeting the cheaper areas. Demand is pushing up prices rapidly.
The REIQ says: “The latest figures confirm that the state’s most affordable suburbs are also some of its star performers. REIQ figures show that in the 12 months to September the majority of affordable suburbs had median house prices under $300,000 and also recorded double-digit percentage price growth.”
The three most affordable suburbs in 11 of the 13 major regional centres of Queensland, including Brisbane, all had median house prices under $300,000. The most affordable suburbs of Brisbane City are Carole Park, where the median price rose 20% to $195,000; Inala, up 16% to $230,000 and Darra, up 18% to $282,000. (These suburbs are all in the Brisbane-Ipswich corridor strongly recommended in the hotspotting.com.au reports).
Further afield in the Greater Brisbane region, the three cheapest locations were Dinmore in Ipswich City ($192,000), Russell Island in Redland Shire ($197,000, up 19%) and Lamb Island ($206,000).
The most affordable suburbs in Gold Coast City are all in the Beenleigh precinct which features strongly in the Queensland Hotspots and Ugly Ducklings Hotspots reports on this website: Eagleby, up 19% to $250,000; Bethania, up 21% to $275,000; and Beenleigh, up 17% to $284,000.
This theme – with affordable areas showing strong price growth – has been repeated in numerous regional centres including Hervey Bay and Townsville (both strong recommendation in hotspotting.com.au reports), Cairns, Mackay and Rockhampton.
In Rockhampton, suburbs such as Depot Hill and Beserker showed growth above 35%.
REIQ chairman Peter McGrath says: “The figures don’t lie. They show that affordable suburbs are not only becoming increasingly attractive to first home buyers, but also to investors because of the possibility of excellent capital growth.”
McGrath says first-home buyers are compromising and buying in areas that are not their dream location, just to get a foothold in real estate. “Everyone has to start somewhere,” he says.
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