Good things are predicted for the Brisbane real estate market this year. According to Tim Lawless, head of research for CoreLogic RP Data, the Queensland capital is “the city that is showing the most promise for capital gains in 2016”.
And in even better news for property investors, CoreLogic also reported that as of December, Brisbane was offering the highest rental returns of all the capital cities for units, with a median gross yield of 5.3%, and the third-highest for houses after Darwin and Hobart (4.2%).
So which Brisbane suburbs offer the highest rental returns for apartments and houses?
Late last year, CoreLogic released the top 10 suburbs in each capital city for the highest gross rental yields for both houses and units as of September. Brisbane’s top 10 apartment suburbs offered higher returns than Sydney’s, Melbourne’s, Perth’s and Canberra’s, and were on par with all other capitals.
All suburbs were in the Logan City and City of Ipswich local government areas (LGA).
Property investment expert and director of hospotting.com.au, Terry Ryder, believes a lot of Brisbane’s property market momentum is “on the southern side”. Logan, about 25kms south-east of the CBD, is located conveniently close to both Brisbane and the Gold Coast, while Ipswich, around 40kms south-west of the city centre, is a major commercial and industrial town that over time has been subsumed into the Brisbane metro sprawl.
Leading the way in the Logan LGA is Beenleigh, with a median rental yield for units of 7.7%. This is followed by Mount Warren Park (7.4%), Waterford West (7.4%),Woodridge (7.3%), Hillcrest (7.2%), Edens Landing (7.2%) and Boronia Heights(7.1%).
Units are comparatively affordable to buy in all these suburbs, with median prices between around $190,000-$220,000 (though Hillcrest and Boronia Heights are a little more expensive than this).
In Ipswich LGA, the suburb of Bundamba offers a median gross unit rental yield of 7.2% for a median outlay of around $240,000.
If, like many potential tenants, you’re looking for suburbs closer to Brisbane’s centre, there are a few that, despite costing more to buy into than those in Logan or Ipswich, also have encouraging rental return potential.
Brisbane City, Woolloongabba, Graceville and Spring Hill all offer median yields of 6% or more for apartments. The median unit price for these suburbs ranges between around $400,000 (Graceville) and $500,000 (Brisbane City).
For a more affordable alternative, the rejuvenated suburb of Moorooka offers a median unit yield of 5.7% for a median outlay of around $360,000. It lies roughly 8kms south of Brisbane’s CBD.
As with most other capital cities, rental yields are typically less for houses than units. But with Adelaide being the only mainland capital with lower median house prices, Brisbane offers an affordable entry point into the housing market with likely decent returns.
As with apartments, Brisbane’s top 10 suburbs for median house yields are all in the Ipswich or Logan LGAs.
In Logan, Eagleby (6.3%), Woodridge (6.2%), Kingston (6.2%), Logan Central (6.2%) and Crestmead (6.1%) all feature in the top 10. And encouragingly, median house values for all suburbs went up in 2015 – by almost 10% in Logan Central.
In Ipswich, Leichhardt (6.2%) and Riverview (6.1%) are among the top 10. And where median house prices for the Logan suburbs range from roughly $270,000-$300,000, the Leichhardt and Riverview medians are both around $230,000.
The suburbs of Rocklea (5.3%), The Gap (4.7%), Chapel Hill (4.6%), Everton Park(4.5%) and Murarrie (4.5%) all fall within 10kms of Brisbane’s CBD. And all saw capital gains in 2015, with Murarrie’s median house price going up by almost 10%.
Median house prices range from around $360,000 in Rocklea up to more than $700,000 in Chapel Hill.
Originally Published On: https://www.mywealth.commbank.com.au/
Barwon secures Princess Alexandra Hospital car park
Barwon Investment Partners has snapped up a multi-level car park and medical centre on a site with significant development upside opposite Princess Alexandra Hospital.
The Woolloongabba asset at 250 Ipswich Road is setting the healthcare focused fund manager back around $95 million, reflecting a circa four per cent net passing yield.
The property contains an eight level, 773-bay garage attached to a two floor wellness centre with 21 tenancies, anchored to Gabba Dermatology, Brisbane Cardiology and Allied Health; the Weighted Average Lease Expiry is nearly seven years.
A pedestrian overpass connects the building to the Princess Alexandra Hospital, also a major teaching campus, employing 6810.
The 5106 sqm block has significant upside – up to 15 storeys based on its zoning, according to JLL’s Seb Turnbull, Elliott O’Shea and Simon Quinn, who marketed the asset with a Blight Rayner scheme.
BIP invests again
Established in 2006, BIP holds a property portfolio worth $2.3 billion.
Its medical related product, much held in a Healthcare Property fund, is priced at about $1.4b as at March, 2022.
Seven months ago, for the trust, the manager paid Forza Capital $34.7m for a South Brisbane medical centre – not far from 250 Ipswich Rd – and two Canberra assets including Belconnen’s Ginninderra Medical & Dental Centre on nearly a hectare.
Also late last year BIP spent $75m for a 12 level St Kilda Rd office majority leased to Alfred Health.
More to come.
Article source: www.realestatesource.com.au
Brisbane’s Office Market Greenlit for Business
Brisbane’s office market continues to shake off the pandemic doldrums with two new commercial towers approved in the CBD and fringe suburbs.
Property owner PGIM and development partner Indema’s plan for a bold adaptive reuse of a 1970s commercial building at 444 Queen Street has won approval.
The bronze 22-storey tower opposite Customs House will be stripped back to its core structure and completely remodelled with a new podium, curtain wall facade and an additional two-storey sculptural canopy.
Indema director Michael Bruderlin said they would be targeting a net zero certification for the building upon completion in the first quarter of 2024.
Article source: www.theurbandeveloper.com
Developer Pitches for $130m Shop-Top Housing on Bayside
Brisbane’s bayside could be going up in the world with plans for $130-million highrise shop-top housing in the heart of the seaside suburb of Wynnum.
Brisbane-based developer Hambros has lodged plans for a 21-storey apartment tower on the vacant lot neighbouring the Wynnum Central Shopping Centre, after winning approval for an small extension to the retail centre late last year.
The development comprises a 6-storey retail and commercial podium, with a 275-apartment tower above, backing on to Wynnum Central Park.
Hambros has reportedly spent about $14 million on revamping the Wynnum Central Shopping Centre on Bay Terrace, as part of a $74-million plan to rejuvenate Wynnum, including cinemas.
According to planning documents lodged with the Brisbane City Council, the tower will be made up of 54 one-bedroom apartments, 148 two-bedroom apartments, and 67 three-bedroom apartments, with six penthouses, which will have private rooftop space and their own pools.
The building height is well in excess of the allowable five to eight storeys in the Wynnum Manly Neighbourhood Plan, but town planners Gateway Survey and Planning argued the plan was “outdated” and should be overhauled.
The six-storey podium would contain two levels of parking, a retail tenancy at ground level, a floor of retail, with two storeys of commercial space for office, healthcare and events space on levels 5 and 6.
In a statement to the council Hambros director Justin Ham said the Wynnum CBD had been left behind “with no development occurring in the last 20 years”.
“Our project is designed to put Wynnum CBD on the ‘open for business’ map,” Ham said.
“This landmark development, with a construction cost estimated at $130 million will have a huge financial and community positive impact on the Wynnum CBD and surrounding areas.
“It’s a once-in-a-lifestime opportunity to create a beautiful space overlooking the best bay in the world.”
Ham said the development would bring much-needed foot traffic to the heart of the Wynnum CBD and help bolster businesses and landowners he said were struggling to remain profitable.
Taiwanese developer Shayher Group won approval for a masterplanned retail precinct at Wynnum Plaza with plans for 184 apartments across eight residential buildings as well as boutique cinemas and increased retail space, reportedly worth more than $100 million.
Work on the Wynnum Plaza redevelopment was due to commence later this year with a completion date hedged for 2024.
Article source: www.theurbandeveloper.com
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