Brisbane’s market is the very definition of the ripple effect capital growth model. When price growth picks up the pace, the first suburbs to feel the rise are those closest to the CBD. Then, like a pebble in a pond, the wave of value gains radiates out as buyer interest moves progressively away from the city seeking more bang for buck.
So, as you can imagine during the current boom run, the localities where $700,000 delivered reasonable buying opportunities last year have now shifted further to the outer reaches. This is another reason why Brisbane’s market has often been seen as a safe haven for purchasers. When the value rises start steaming, we provide a reasonably predictable track of gains that buyers can follow.
And Brisbane is in a hot market right now.
CoreLogic data to 18 July revealed the city has seen a 14.6 per cent increase in home values over thepast 12 months, with a 12.1 per cent increase in just 2021 to date.
Those double digits will have excited property owners high jumping for joy (Olympic Games reference intended). Buyers are now having to travel further afield to scratch their $700,000 itch, but just how far is far enough?
Well, head to the north and you’re looking at North Lakes, Burpengary and Mango Hill. These areas are riddled with new and near-new homes on standard size allotments in master-planned estates.
$700,000 will buy you a modern four-bedroom, two-bathroom, two-car home with a pool on a standard size block. A prime example is 57 Numbat Street, North Lakes which sold in June for $715,000.
Heading to our peninsula suburbs and you’ll find there’s plenty on offer as well. We’re talking locations within the canal-front suburb of Newport – although $700,000 won’t get you on the water.
Then there’s Redcliffe, although you will have to make compromises to stay around $700,000. The housing at this mark is on the western side of Oxley Avenue (i.e., further from the shoreline). Dwellings for this sort of money typically comprise renovated post-war style houses situated on 400 to 500 square metres. Redcliffe remains a popular location due to its bayside lifestyle and proximity to the water.
This property at 18 Centaur Street, Redcliffe is a great example. It’s well renovated and on a good size block –and it sold in June this year for $667,000.
Other northern locations worthy of mention are Banyo, Geebung and Nudgee. Mind you, you won’t get much in the way of a home. It could well be a holding proposition as you make plans for a demolition and rebuild, or some extensive renovations. But these well-established suburbs have great potential. There are plenty of services and facilities in close proximity and there’s solid real estate with excellent long-term capital growth potential if you select the right asset.
Everton Park, positioned 8.5 kilometres north of the CBD, is another suburb at the $700,000 price point. There are plenty of entry-level options available. Most will be 1960 to 1980 brick constructions on 600 square metre sites.
In a similar vein is housing in nearby Arana Hills and Ferny Hills where approximately $700,000 will land you a mid-to-high set 1960 to 1980 brick dwelling as well. A great example is this three-bedroom, two-bathroom home at 9 Mitchell
Street, Arana Hills which sold for $695,000 in June this year.
How about to the south? The popularity of Moorooka, Upper Mt Gravatt and other nearby suburbs has grown in recent years. These well established suburbs are positioned approximately seven to eight kilometres from the CBD. Our magic price point will deliver some decent housing. Most will be entry-level post war style three-bedroom, one-bathroom stock situated on 600 square metres. Again, this is solid property with great longterm growth potential.
Our eastern suburbs heading out to the bayside are also finding plenty of appeal. $700,000 will deliver a home in Capalaba, Thorneside or Alexandra Hills. Expect to find something like this property at 7 Doolan Court, Capalaba which is a four-bedroom, two-bathroom home situated on 725 square metres. The property sold for $725,000 in May 2020.
Another spot worthy of mention is Pallara, positioned in Brisbane’s western growth corridor. Pallara feeds off the Forest Lake master planned estate which saw its final stages completed some years back. The Forest Lake project transformed this area, delivering comprehensive infrastructure including parklands and community facility.
In Pallara you’ll find that a two-year-old modern home of four-bedroom, two-bathroom, two-car accommodation situated on a 450 to 500 square metre sits at the $700,000 price point. Now to those suburbs east of Brisbane’s CBD such as Wynnum West and Hemmant. These are, again, well-established areas with solid real estate options.$700,000 should land you a circa 2010 project home providing four-bedroom, two-bathroom, twocar accommodation situated on around 450 square metres of land.
An example would be this property at 44 Peplow Street, Hemmant which sold for $675,000 in July this year.
So, given this wealth of examples, where would the smart money look to invest $700,000 in Brisbane at present?
Our call would be sticking with the fundamentals. You’d be safest buying something in those mid-ring localities. Essentially, seek somewhere as close to our CBD as possible within your budget as there will likely be upward pressure on prices as the year progresses. Moorooka, Mount Gravatt, Geebung, Banyo and Nudgee could all be on your short list as either a homebuyer or investor.
Also – try to stick with detached housing where possible and look for nearby retail, transport and lifestyle facilities. For those thinking about putting their money towards attached housing, there are huge numbers of units and townhouses within this price point right across south-east Queensland. The tip here is to, again, make sure you spend your $700,000 on good fundamentals. Also, seek properties in projects with reasonable body corporate fees. While new buildings with lots of facilities may be pleasing to the eye, body corporate costs can be a real kick in the guts.
Here’s one final tip for unit investors. Try to buy something that will appeal to both renters and owner-occupiers. Investor-only designed stock can be tough to sell and will experience far less chance of capital gains than units with owner-occupier appeal.
In summary, things bode well for $700,000 buyers in Brisbane at present. Prices are expected to continue rising steadily. This sort of money is at a reasonably affordable level for first homebuyers, owner-occupiers and families, and demand from those groups doesn’t look like pulling up anytime soon.
Southern Gold Coast and Northern NSW
Market demand in the southern Gold Coast and Tweed Shire continues to remain very strong. Stock levels are low and buyer enquiry is high. People are looking for an alternative beach lifestyle to the higher density areas of the central Gold Coast. Tugun, Bilinga and Coolangatta are popular with owner-occupiers, investors and people looking for a beachside holiday getaway property. Further south, the beachside localities of Fingal Head, Kingscliff and Casuarina have continued to remain highly sought after. In light of the strong demand in the Kingscliff and Casuarina areas of the Tweed Coast, purchasers are focusing on the more affordable localities of Bogangar and Pottsville. As a result we are seeing a catch-up in property values within these localities. An example of this is 8 Edinburgh Court, Pottsville which sold via Openn Negotiation, an online digital bidding platform. This property is an internally renovated, low-set, four-bedroom, three-bathroom waterfront dwelling situated on a 934 square metre allotment, with double car accommodation. The property sold for $1.67 million and had 5,643 page views, 33 enquiries, 16 inspections and five registered bidders. It previously sold in January 2017 for $790,000.
As a result, we are now seeing strong demand for areas within the Tweed Shire which have historically been more affordable such as Tweed Heads West, Tweed Heads South, Banora Point and Bilambil Heights. Agents are reporting highly reduced average time on market as well as many off market transactions.
A budget of approximately $700,000 in these localities would typically enable you to purchase a modest, 1990s style single-storey brick dwelling in Banora Point. 14 Nandina Terrace, Banora Point, a three-bedroom, two-bathroom dwelling with single lock up garage on a 609 square metre allotment, sold in May this year for $675,000. The forecast weekly rental was advised by the selling agent at $650 per week. The property previously sold in May 2017 for $450,000.
Market demand in the southern Gold Coast and Tweed Shire continues to remain very strong. Stock levels are low and buyer enquiry is high.
There are also other opportunities to be found in areas to the west of Banora Point around the $700,000 price level for buyers looking for detached housing. 13 Vail Court, Bilambil Heights reportedly sold in May 2021 for $709,500. The property comprises a high-set, three-bedroom, twobathroom dwelling with double garage and elevated position affording good valley views. The property previously sold in December 2013 for $425,000.
For investors and occupiers looking to purchase in the Coolangatta area, a budget of $700,000 would limit you to only unit style properties. 10/15-17 South Street, Coolangatta sold in May 2021 for $665,000. The property comprises a single level, 1990s style, two-bedroom, two-bathroom walkup strata unit with single car accommodation in mainly original condition. Restricted ocean views are available and the property is in close walking distance to Kirra Beach. It previously sold in May 2017 for $348,500.
Gold Coast Central Areas
Residential property between the coastal suburbs of Burleigh Heads and Surfers Paradise is still highly sought after at present and stock levels remain very low. Opportunities to buy a detached house at the $700,000 price level are becoming harder to find. Buyers may have to look at buying an attached duplex or townhouse unit as an alternative option. The ones which seem to represent reasonable value are in suburbs such as Varsity Lakes, Robina, Miami and Burleigh Waters.
The best performing properties at present appear to be in the Miami and Burleigh Heads or Burleigh Waters areas but again with a $700,000 budget here you will be limited to buying a strata unit. Finding a unit within an older style, small, walk-up complex on a block with future redevelopment potential might be your best bet.
Other areas to consider are the pockets surrounding Bond University where the demand for rental properties is reportedly quite strong as rental values are on the rise.
We note that many buyers at this price point are either first or second home buyers or renovation flippers who are looking for a project with a quick turnaround. Local agents advise that confidence is high with first home buyers as interest rates remain low and the market is still very buoyant.
Demand for highrise apartments in Surfers Paradise and Broadbeach is at the strongest levels it has been over the past decade. It appears that there has been good interest from owneroccupiers and investors in this market segment. Buyers should look out for relatively modern twobedroom, two-bathroom apartments with good ocean views or city and river views. Local agents have reported that stock levels are even at very low levels within the large highrise developments of Chevron Renaissance, Q1 and Circle on Cavill which is considered a rare event given traditionally there is always a good amount of stock to choose from in these buildings. It appears that buyers are less concerned with body corporate fees at the moment as rental values have been moving upwards post the impact of the COVID-19 pandemic in 2020.
We note that 1301/4 Wahroonga Place, Surfers Paradise is reportedly under contract as at June 2021 for $695,000. The property comprises a modern, single level, two-bedroom, two-bathroom highrise apartment situated on level 13 in a modern, highrise building in the Surfers CBD area. The unit features a basement car space and has excellent river and city skyline views.
9/67—71 Broadbeach Boulevard, Broadbeach sold in April 2021 for $685,000. The property comprises a single level, two-bedroom, two-bathroom highrise apartment situated on level 3 in a circa 1982-built highrise building with parkland and beachfront located opposite. The unit features a basement car space and has reasonable ocean views with mainly dated finishes throughout.
Central-Northern Gold Coast
There are many properties in Labrador that appear to represent good value in the current market if you are looking in the central north area of the Gold Coast. Buyers will find that there are various options to choose from here, ranging from older style three or four-bedroom detached houses to modern style three- or four-bedroom duplex units to two or three-bedroom modern apartments with many of these units offering water views or good proximity to schools and shops.
An example of a property in Labrador which recently sold just under the $700,000 price level is 1/11 Billington Street, which comprises a 2015 built, modern style, detached, three-bedroom plus study, two-bathroom townhouse unit with double garage. The property has good internal and external condition and presentation, featuring 2.7 metre ceilings, open plan layout and private fenced yard areas.
Other examples of properties which could be obtained with a $700,000 budget include modern style two storey three- or four-bedroom duplex units or modern three-bedroom highrise apartments with Broadwater views in Biggera Waters. Continuing north there are circa 1990 to 2000 built three-bedroom units and townhouses selling under $700,000 in Runaway Bay as well as two- to three-bedroom units with Broadwater views in Hollywell and Paradise Point.
Heading up to Hope Island, there are various options available here around the $700,000 price level (or below). Buying options include circa 1990 to 2000s villas and townhouses providing three or four-bedroom accommodation, circa 2000s two- or three-bedroom strata units with golf course frontage or canal views. However, we do note that just recently asking prices for small lot modern detached housing has moved above the $700,000 level. 6 Jingella Street, Hope Island sold recently for $709,000. This property is a refurbished, two-bedroom, two-bathroom split level dwelling with converted garage providing secondary non-approved accommodation under the house. It features an in-ground swimming pool and solar panels and has a land area of 607 square metres.
Detached housing under $700,000 in suburbs such as Parkwood, Arundel and Helensvale has been highly sought after in the past couple of months. Housing stock is fairly limited in this price range at the moment. Helesvale has particulaly been perfoming very well as reported by local agents. Properties in these suburbs in this price range are typically 1980s to 1990s style dwellings which provide either three- or four-bedroom accommodation. Some small lot modern housing (less than three years old) can be found in Arundel but most of these properties are priced above $700,000 now.
We note that 21 Vale Avenue, Arundel reportedly sold in May 2021 for $701,000. The property comprises a 2018 built, modern, four-bedroom, three-bathroom dwelling located in the popular Arundel Springs residential estate which has good access to the M1 Motorway and light and heavy rail connections. The property sold with a tenant in place paying rent of $720 per week reflecting a 5.3 per cent gross return.
Twelve months ago, the Labrador and Arundel area would have been our pick if you wanted to buy two properties totalling close to the $700,000 mark, however given the increase in prices over that period, a buyer in today’s market will find it hard to find stock priced under $375,000 for a single duplex unit in these areas. Duplex product in Helensvale or unit product in Biggera Waters appear to be the next best option for now.
For solid detached housing investments, be sure to keep an eye on listed properties which have good proximity to the Broadwater or Paradise Point business district or Esplanade parkland.
Detached houses are generally returning four to 5.3 per cent gross and townhouses are approximately 5.5 per cent gross in this part of the Gold Coast based on recent rental information.
Northern Gold Coast Corridor
Last year, $700,000 would have got you a large four- to five-bedroom house on a fairly large block with modern fixtures and fittings and perhaps a swimming pool in the Pimpama to Ormeau corridor. In fact, your home would have been considered above average in a neighbourhood populated by dwellings that are generally well below the $600,000 level. In the more upmarket area of Coomera Waters, this amount would have bought you an older style house with a swimming pool.
Today, $700,000 may still buy a fairly large home with 150 to 170 square metres of living area on an allotment of more than 500 square metres. However, the age of the house is more likely to be more than 20 years old and there may not be a swimming pool. Last year, you may have been able to purchase a rural residential property with a land area of 4,000 square meters or more but today, it would be hard to find any property less than $800,000, even an old house that needs to be renovated.
For investors, $700,000 would likely get you two older style townhouses in Coomera, Pimpama or Eagleby if you were looking to buy two properties with the total budget. The good thing about these properties is that the rentals have continued to spike and therefore provide positively geared investments.
At this time, the rise in rental values don’t seem to be keeping up with the rate of capital appreciation, however landlords are slowly increasing rents by $10 to $50 per week to take advantage of the high demand and diminishing accommodations for rent.
In Jacobs Well, older houses are still being sold in the $500,000 to $600,000 level but new houses on 500 to 1000 square metre allotments are now being sold well above $600,000. A few months ago, you could buy a canal frontage vacant allotment in Calypso Bay for less than $600,000 but now you will need to fork out another $200,000 or just be satisfied with a dry lot.
If a new or near new home is essential, this amount would be best invested in the Gainsborough Estate, Pacific Cove or Foreshore Estate. These estates are preferred by owner-occupiers and the capital appreciation of properties during this COVID time have been phenomenal. As these areas are increasingly being priced beyond the reach of the average tax payer, the second choice areas which neighbour these estates are slowly turning from high rental areas into neighbourhoods of mixed owner-occupied and rented homes.
For $700,000, new duplex pairs in second choice areas are performing exceptionally well due to the high rental demand, and gross rental yields in the vicinity of six per cent are not uncommon, however larger duplex pairs providing six or more bedrooms together are now unaffordable for those with only $700,000, more or less, to spend.
This northern corridor of the Gold Coast is becoming one of the fastest growing areas in the country and the population level here is still rising. There is still plenty of land to accommodate new estates and infrastructure continues to be improved each year. The future Coomera Connector will greatly enhance accessibility to this area, although some areas may be negatively impacted by increased traffic noise. A Costco Wholesale Warehouse is planned for the Coomera area, the first for the Gold Coast and could potentially be a magnet for further growth in the suburb. Buyers looking to purchase in this district however should be wary of the future Coomera Connector Road, a highway that is to provide the alternative transport corridor to the M1. It is a known fact that excessive traffic noise can bring down the value of houses and the smart investor should consider carefully the alignment of the future highway to avoid potential degradation in quality of living and potential loss in value.
At this time, the rise in rental values don’t seem to be keeping up with the rate of capital appreciation, however landlords are slowly increasing rents by $10 to $50 per week to take advantage of the high demand and diminishing accommodations for rent. For properties that are purchased for about $700,000, the level of gross rental returns would still be low because existing tenants are still generally paying less than $600 per week. This is why duplex pairs typically provide better returns as the combination of two dwelling on the same lot can provide a total rent in excess of $700 per week. Alternatively, two townhouses bought for $700,000 can be potentially rented out for at least $350 each.