Rail suburbs continue to provide higher growth

Posted on 11/05/2010  

New research has confirmed that suburbs with rail access to the central city show better capital growth that those without.

 

A study of Brisbane rail suburbs indicates values rose 10.3% in 2009, compared to suburbs not serviced by train where house prices rose by 7.7%.

 

The suburbs studied by PRDnationwide are dotted along the lines of Brisbane’s Citytrain network stretching from Salisbury to Virginia.

 

The results confirm earlier research by Colliers International which found rail suburbs in Brisbane, Sydney and Melbourne tended to show stronger price growth than suburbs outside a radius of 2km from a train station.

 

PRDnationwide research analyst Josh Brown says Brisbane’s railway suburbs are growing through increased demand from city workers as road traffic congestion worsens.

 

“Population growth in Brisbane is surging ahead and the capacity of roads to cater for the influx of residents is such that alternative methods of transport are in high demand,” Browns says.

 

The rising costs of fuel, inner-city parking (Colliers research shows Australian cities are among the most expensive in the world for parking) and road tolls are all factors in the rising patronage on public transport in our largest cities.

 

“Buyers are seeking areas of convenience and high amenity negating the need for frequent car usage,” Brown says. “This has created an increased demand for suburbs located along or  close to major train lines.”

 

He says Brisbane suburbs with a train station experienced 16% growth in demand over six months compared to 13% in suburbs not serviced by rail.

 

North Coast Rail Line suburbs in particular have done well, recording a 17% spike in growth over 2009. These suburbs include the Kallangur precinct (suburbs such as Kallangur, Bray Park and Petrie) which has been featured in recent editions of the Queensland Hotspots report on hotspotting.com.au.

 

 ENDS

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