INVESTING IN BRISBANE - 2023

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Which suburbs of East Brisbane should I invest in?

 

Bulimba rental market analysis

103 Bulimba street, Bulimba 4171.

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Rental Market Analysis for Belmont, Brisbane, Queensland, Australia

Overview

Belmont is an outer suburb in the City of Brisbane, Queensland, Australia. It has experienced significant development in recent years, with some areas featuring built-up residential estates, while others still comprise undeveloped blocks of bush and large rural properties. The suburb is known for its affluent character, with large estates sitting on acres of land, and a variety of housing options ranging from approximately 3,500 square feet (330 m2) to over 10,000 square feet (930 m2). As of the 2016 census, Belmont had a population of 4,374 people.

Vacancy Rate and Stock on Hand

The rental vacancy rate for Belmont is relatively low at 0.4%. This indicates a healthy demand for rental properties in the area, and the low vacancy rate suggests that there is limited availability for prospective tenants to find rental accommodations. As of now, there are 15 properties available for rent (stock on hand). The state of stock on hand in Belmont is its biggest issue, with Owner to Tenant ratios being 83% owners, 20% renters. This highlights the environment of Belmont, as well as what to look forward to when investing in larger estate suburbs like these. 

Property Prices and Rental Rates

Houses:

The average selling price for houses in Belmont is $1,126,563 

The average rental price for houses in Belmont is $820, with a rental yield of 3.8%. This suggests that the suburb features higher-priced housing options, possibly due to the affluent character of the suburb and larger estate sizes. A rental yield of 3.8% for houses is relatively good, however it makes sense due to Belmonts lack of stock on market- the population is largely owners who do not rent out their property but rather live there permanently. A lower rental yield like this can indicate that the Belmont rental market is tight and limited- leaving tenants at the steps of Belmont waiting for the right home. Units seem to be the better rental investment in this case, with sales taking #1 place for Belmonts House/ Estate market.

30 Hartigan Street, Belmont QLD

Units:

The average selling price for units in Belmont is $624,062. Units are generally more affordable than houses, which might appeal to a broader range of buyers. Especially considering that there is a lack of stock in Belmont as well as the high rental yield of units ( 5.3% ) The average rental price for units in Belmont is $591. It's worth noting that rental yields in Belmont are relatively low for both houses and units, indicating that the rental market might be more favorable for property owners seeking long-term capital growth rather than immediate rental returns.

Amenities and Features

Belmont offers various amenities and features that make it an attractive place to live:

Belmont Private Hospital (PRESENT)

Belmont Private Hospital ( FUTURE $22M PROJECT)

Education:

While there are no schools within the immediate boundaries of Belmont, several government primary and secondary schools are available in neighboring areas, such as Tingalpa State School, Gumdale State School, Brisbane Bayside State College, Whites Hill State College, and Mansfield State High School.

Parks and Outdoor Spaces:

Belmont has numerous parks and green spaces, providing residents with opportunities for recreational activities and outdoor enjoyment. Some of these parks include Belmont Hills Bushland, Cassandra Crescent Park, Coventry Circuit Park, Dairy Swamp Road Park, Glenavon Street Park, and more.

Belmont Rifle Range:

The suburb hosts the Belmont Rifle Range, which is a notable venue for sport shooting clubs. It has hosted various shooting events, including those for the Commonwealth Games and the World Long Range Championships.

Proximity to Major Roads:

Belmont benefits from its location near two of Brisbane's main roads, the Gateway Motorway and Old Cleveland Road, making it convenient for residents to access various destinations within and beyond the suburb.

Conclusion

Belmont is an affluent outer suburb of Brisbane, Queensland, offering a mix of larger estate homes and more affordable units. The low vacancy rate indicates a strong demand for rental properties and tenants looking for long term leases, which could present an opportunity for property investors. However, the relatively low rental yields might favor those seeking long-term capital growth. The suburb's amenities, green spaces, and convenient location near major roads contribute to its appeal as a desirable residential area for potential tenants and buyers. As with any investment, conducting further research and seeking professional advice is essential before making any decisions in the Belmont rental market.

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Coorparoo, Rental Market Analysis

 

Rental Market Overview:

Coorparoo is a sought-after old suburb in Brisbane known for its convenient location, proximity to the CBD, long history and various amenities. With a vacancy rate of  0.7%, the rental market in Coorparoo appears to be relatively tight, suggesting a strong demand for rental properties. The data suggests that tenants in Coorparoo may be looking for mid-long leases such as 6 months, however the number is still low in regards to other suburbs, indicating that although some tenants may want shorter stays, there are a surplus looking for 12 months or more to stay. Coorparoo is a highly sought-after suburb in Brisbane, known for its family-friendly environment and excellent school catchment zones. With 44.3% of residents renting properties, the suburb has a higher than average rental demand, making it appealing to potential buyers and investors. Families, in particular, choose to rent in Coorparoo due to its proximity to well-regarded schools like Coorparoo State School, Our Lady of Mount Carmel Primary School, and others.

Average Selling Prices:

Houses: The average selling price for houses in Coorparoo is $1,657,894

The average selling price for units in Coorparoo is $455,276.

Average Rent:

Units: The average rent for units in Coorparoo is $572.

Houses: The average rent for houses in Coorparoo is $856.

39 Chatsworth Road, Coorparoo QLD.

Vacancy Rate:

Coorparoo has a relatively low vacancy rate of 0.7%. This indicates that the demand for rental properties in the area is relatively high, which can be favorable for property investors and landlords

Houses vs. Units:

Houses generally have higher average selling prices compared to units, indicating that houses might be more suitable for property buyers and investors looking for long-term capital appreciation.However, units can be more affordable and attractive for renters, as they offer lower rental prices, making them suitable for individuals or small families seeking more budget-friendly accommodation options. 

Investment Potential:

Given the low vacancy rate and strong demand for rental properties, Coorparoo presents itself as an attractive option for property investors seeking rental income. The steady demand for rentals can potentially offer consistent rental yields and rental growth. Coorparoos suburb is full of families and has a rural vibe to it, keeping with that theme- units arent as popular in coorparoo as it seems renters prefer to be staying on land or a house. This can be correlated to the history of Coorparoo and its older houses, rejecting modern unit blocks in excess: instead coorparoo is full of spacious land, houses, and a few blocks of units- but not enough to overwhelm investors such as what you find in Brisbane City. Investing in Coorparoo houses is a solid strategy.

Factors to Consider ( AMENITIES) :

As an investor, it's essential to consider factors such as property location, condition, amenities, and future development plans in Coorparoo, which could impact property values and rental demand. Keep an eye on market trends, interest rates, and economic conditions as they can influence the real estate market in Coorparoo.

The suburb's convenient location close to Brisbane's CBD adds to its attractiveness, especially for working professionals with families. Excellent transportation options, including nearby bus stops and the Coorparoo train station, make commuting to the city easy. Coorparoo also offers an array of amenities, such as the Coorparoo Square Shopping Village, sporting fields, dog parks, cafes, and restaurants, further enhancing its appeal as a popular lifestyle choice. With these factors in mind, Coorparoo presents promising investment potential for landlords and property investors seeking a strong rental market.

Furthermore, Coorparoo's projected population growth of 2.19% by 2026 bodes well for the rental market. As more people are drawn to the area, the demand for rental properties is expected to increase, creating a favorable environment for property investors. It is worth noting that approximately 45.13% of the population in Coorparoo are renters, highlighting the significance of the rental market in this community.

Coorparoo overlook

 

House Prices and Rents:

The median house price in Highgate Hill is $1,077,519, reflecting the diverse range of housing options available. This price point caters to varying income groups, offering a blend of affordability and quality. With an average rent of $771 per week for houses, the rental yield for this segment stands at approximately 3.7%. This suggests a balanced equation between investment return and housing value, making Highgate Hill an enticing prospect for property investors and tenants alike.

5/13 Paradise street, High Gate Hill 

Unit Prices and Rents:

The median unit price in Highgate Hill is $595,738, presenting a more affordable housing option for renters who seek an urban lifestyle. Units offer a median rental price of $732 per week, resulting in a notable rental yield of 6.4%. This robust yield, coupled with the appealing price point, makes units a lucrative investment opportunity for those interested in maximizing their returns in High Gate Hill.

Population and Rental Demand:

With 350 listings available, Highgate Hill caters to a diverse community of renters. The suburb's unique appeal attracts a wide range of tenants, resulting in 60% of the population choosing to rent. Furthermore, a projected population growth of 9.87% by 2026 underlines the increasing allure of Highgate Hill as a preferred rental destination. This growth is likely to further elevate demand for rental properties, especially due to proximity to Brisbane CBD and Kangaroo Point. 

28 BELLEVUE HIGHGATE HILL, QLD.

Vacancy Rates:

The vacancy rate in Highgate Hill currently stands at an impressively low 1.2%. This signifies a tight rental market, indicating a robust demand for available properties. For investors, the low vacancy rate implies that rental units are in high demand and are likely to be swiftly occupied, potentially resulting in consistent rental income. As well as this, a balanced vacancy rate such as 1-1.2% suggests enough tenants are occupying for long enough to produce return- meaning a consistent supply of tenants come along with investing in High Gate Hill.

 

Location Benefits:

Highgate Hill's strategic location, situated in close proximity to the heart of Brisbane, positions it as an ideal residential hub. Residents enjoy convenient access to amenities, job opportunities, and recreational options that a major city offers. This urban connectivity makes Highgate Hill an attractive choice for tenants seeking a seamless blend of urban convenience and suburban tranquility. Highgate Hill is sought after for its leafy historic streets, gracious Queenslanders, beautiful vistas, river frontage and proximity to West End and Brisbane CBD, Home to cool cafes and a bakery in old converted stores, groovy bars, gorgeous pocket parks and Brisbane's first highrise residential apartment.

Highgate Hill Park- Reddit

 

Some of the local benefits: 

HighGate Hill Park

Work centres (public transport)	Paddington (3km away) Ipswich (28km away)
Work centres (walk/drive)	Paddington (3km away) Ipswich (28km away)
Chemists	Highgate Hilltop Pharmacy (141m away) Gladstone Road Pharmacy (411m away)
Supermarkets	Nightowl Convenience Stores (411m away) Lucky 7 (1km away)18 more within 4km
Patisseries	West End French Patisserie (938m away) My Sweetopia (1km away)
Food / general stores	727 Convenience Store (465m away) 7-Eleven Stores Pty Ltd (982m away)

 

Local schools: Many residents in High Gate Hill choose to send their child to Brisbane State High School or Inner City South State High School. 

Highgate Hill walking trail

Cultural Diversity and Urban Lifestyle:

Highgate Hill's cultural diversity and vibrant atmosphere contribute to its distinct character. The presence of local markets, artistic communities, and a plethora of dining options creates an engaging living environment that appeals to a diverse demographic. This blend of cultures enhances the rental experience and adds to the suburb's appeal. Especially since renting is more popular with those under 30, appealing to new wave suburbia in High Gate Hill seems to bring success!

 

Investment Potential:

Highgate Hill's rental market offers an enticing investment opportunity with its competitive rental yields. Houses present a solid rental yield of 3.7%, while units boast an impressive 6.4% yield. These figures, combined with a growing population of renters, indicate the potential for stable rental income over time. Seen as a hidden riverside suburb, High Gate Hill grabs the attention of seasoned investors.

 

Conclusion:

Highgate Hill's rental market is characterized by its diverse tenant base, appealing rental yields, and low vacancy rates. The suburb's unique blend of urban convenience and cultural vibrancy positions it as an attractive destination for both tenants and investors. Aspiring investors should conduct thorough research, collaborate with local experts, and stay attuned to evolving market trends to make well-informed decisions. The rental market in Highgate Hill holds promise, and those who understand the distinct preferences of renters stand to benefit from the thriving opportunities it presents.

 

Kangaroo Point Rental Market analysis

Kangaroo Point Overlook

Are you considering moving to Kangaroo Point, Brisbane, or investing in its real estate market? Before making any decisions, it's crucial to gain a deep understanding of the local rental market. In this section, we'll provide you with an informative analysis of the rental market in Kangaroo Point, including current property prices, vacancy rates, and average rental rates for both houses and units.

Property Prices:

Kangaroo Point offers a diverse range of properties for buyers to choose from. Using the most recent data from SQM Research, the average asking price for houses stands at $1,147,644, while units are priced at an average of $552,393. These prices indicate that houses are much more expensive than units, making units a more affordable option for those looking to enter the Kangaroo Point real estate market. However, it is worth noting that any investment under $1M in city areas is due to pull revenue. The price increase on houses suggests a demand for lone-standing property rentals. This may be due to the fact that Kangaroo Point is dominated by unit blocks/ buildings, meaning that the houses remaining are historical and usually go for minimums of $800,000- $1MIL. For developers, we reccomend restoring historical houses.

74 SINCLAIR STREET, KANGAROO POINT

Vacancy Rate:

The vacancy rate is a crucial metric for both property owners and tenants, as it reflects the percentage of rental properties that are currently unoccupied or vacant. In Kangaroo Point, the vacancy rate is recorded at 1.3%. A low vacancy rate generally suggests strong demand for rental properties in the area, making it an attractive market for property investors seeking consistent rental income.

Average Rental Rates:

For potential tenants, understanding the average rental rates in Kangaroo Point is essential for budgeting and decision-making.

Currently, the average rental price for houses in Kangaroo Point is $745 per week, while units have an average rental rate of $695 per week. These figures can serve as valuable benchmarks for both landlords and tenants to negotiate fair rental agreements.

Kangaroo Point Suburb

Market Demand:

With 133 istings available in Kangaroo Point, there is a healthy number of properties to choose from, providing tenants with various options. With a population percentage of 58% renters vs. 42% Owners, explaining why renting in Kangaroo Point is prominent. With proximity to all local amenities and South Bank, CBD, West End: Kangaroo Point is for corporate or distinguished living.  Additionally, a relatively low vacancy rate suggests that the demand for rental properties in this area remains steady, indicating the potential for a secure investment for landlords.

Investment Opportunities:

For those considering entering the property investment market, Kangaroo Point shows promise. The lower average unit asking price compared to houses indicates that units might present an excellent investment opportunity, especially for first-time investors or those with a limited budget. The strong demand for rentals, as indicated by the low vacancy rate and demographic ratios, adds to the appeal of investing in this area.

However, it's essential to remember that the real estate market is subject to fluctuations, and local conditions may change over time. Before making any investment decisions or renting a property, it's wise to conduct further research, seek advice from real estate professionals, and consider your personal financial circumstances. Armed with this analysis, you can now approach the Kangaroo Point rental market with more confidence and make well-informed choices for your future

It is all well and good to analyse the financial data of Kangaroo Point, however it is also essential to take into account certain considerations regarding the suburb's amenities and infrastructure! Majority of the time, Location drives the market- and in the case of Kangaroo Point- we can corellate its evergreen market to its city proximity. 

14/19 ELLIS STREET, KANGAROO POINT

Limited Amenity:

Despite its prime location, Kangaroo Point currently has limited amenities. The eastern side of the suburb, off Main Street, hosts a few cafes and a handful of pubs. However, the area lacks a variety of essential services, such as supermarkets and a library. Residents have to rely on nearby suburbs like Spring Hill or East Brisbane for their grocery shopping needs. However, East Brisbane is extremely close and accessible as well as Spring Hill.

Kangaroo point walk

Upcoming Supermarket and Riverwalk Extension!

There is a glimmer of hope for improved amenities in the near future!

 An application from Woolworths for a supermarket is under assessment by the Brisbane City Council, which could bring much-needed convenience to Kangaroo Point residents.

Additionally, there is a long-promised Riverwalk extension along the eastern side of the river, although it has yet to be realized. The Brisbane City Council still lists the Riverwalk in its long-term plan, and the Labor state government has pledged $22 million to build missing Riverwalk connections. Once completed, this extension could enhance pedestrian and cycling access and provide recreational opportunities for residents.

Envisioned River-walk

Transportation and Connectivity:

A $190 million green bridge is also in the works, aiming to connect Kangaroo Point to the CBD within two years. This bridge will improve transportation options for residents, providing an alternative means of accessing the city center.

Additionally, a new underpass between the Story Bridge is set to enhance pedestrian and cycling access, contributing to the overall connectivity of the area.

Education and Care Facilities:

Families considering Kangaroo Point should take note of the education and care facilities available. The suburb falls into the East Brisbane State School catchment, providing an option for primary education. However, there seems to be limited availability of childcare services, long day care centers, and kindergartens within Kangaroo Point itself. This could be correlated to Kangaroo Points business lifestyle which majority of occupants seem to prefer.

Infrastructure Concerns:

Greens councillor for the Gabba Ward, Jonathan Sri, has expressed concerns regarding the lack of infrastructure investment in Kangaroo Point. As one of Queensland's most densely populated suburbs, the need for public parkland, public housing, pedestrian crossings, bike lanes, and other community facilities is becoming evident.

Affordability is also an issue, with lower-income residents facing the challenge of more affordable homes being replaced with higher-priced apartments, potentially displacing them from their communities.

Conclusion:

Kangaroo Point, Brisbane, is a vibrant and sought-after location with attractive opportunities in the rental market. The combination of diverse property options, a relatively low vacancy rate, and steady rental demand makes it an enticing prospect for both tenants and property investors.

However, it is crucial to approach the market with a realistic understanding that real estate is subject to fluctuations and local conditions can change over time. For potential investors, conducting further research, seeking advice from real estate professionals, and carefully considering personal financial circumstances are essential steps before making any investment decisions. Armed with this analysis, investors can approach the Kangaroo Point rental market with more confidence and make well-informed choices for their future.

On the other hand, prospective residents should be mindful of the current limitations in terms of amenities and infrastructure within the area. While promising developments such as the potential supermarket and Riverwalk extension are on the horizon, it's essential to balance the location's potential with its current offerings. Staying updated on planned projects and considering the overall lifestyle and living conditions that Kangaroo Point can provide will be essential for those looking to make a move to this area. In both cases, striking a balance between density and amenity becomes a crucial consideration. Ultimately, conducting thorough research, seeking expert advice, and understanding personal preferences and needs will lead to making the most informed and satisfactory choices when it comes to Kangaroo Point in Brisbane. The key is to approach this promising location with an open mind and a readiness to adapt to the evolving landscape of the rental market and community infrastructure.

Kangaroo Point Cliffs

Conclusion: Best suburb to invest in goes to.....

In the battle for the title of best suburb to invest in, High-Gate Hill and Coorparoo each present unique opportunities and challenges for investors.

Coorparoo stands out for its impressive and low rental yield of 6.5% for Units, and 2.7% for Houses. With an adbundance of available land and a variety of housing options, Coorparoo appeals to families and investors alike. The working-class nature of the suburb has also kept property prices at reasonable rates, providing a more accessible entry point into the market for those with limited financial resources. For seasoned investors with substantial capital, Coorparoo houses present a solid money-making opportunity, while units offer a more affordable investment option. The solid average rent of $572 for units in Coorparoo adds allure for tenants.

HIGHGATE HILL

House Prices and Rents: Highgate Hill offers a diverse range of housing options with a median house price of $1,077,519. The average rent for houses is $771 per week, resulting in a rental yield of approximately 3.7%.

Unit Prices and Rents: The median unit price is $595,738, and units offer a median rental price of $732 per week, resulting in a notable rental yield of 6.4%.

Population and Rental Demand: Highgate Hill has a diverse community of renters, with 60% of the population choosing to rent. The projected population growth of 9.87% by 2026 suggests increasing rental demand.

Vacancy Rates: The vacancy rate in Highgate Hill is low at 1.2%, indicating high demand for rental properties and potential for consistent rental income.

Location Benefits: Highgate Hill's strategic location near Brisbane's CBD offers convenient access to amenities, job opportunities, and recreational options. Its urban connectivity makes it attractive to tenants seeking a blend of convenience and tranquility.

Cultural Diversity and Urban Lifestyle: The suburb's cultural diversity, vibrant atmosphere, local markets, and dining options contribute to its appeal among renters, especially younger demographics.

Investment Potential: With competitive rental yields for both houses and units, along with a growing population of renters, Highgate Hill presents a promising investment opportunity.

 

VS

COORPAROO

Average Selling Prices: The average selling price for houses is $1,657,894, while units have an average selling price of $455,276.

Average Rent: Units have an average rent of $572, and houses have an average rent of $856.

Vacancy Rate: Coorparoo boasts a low vacancy rate of 0.7%, indicating strong demand for rental properties.

Houses vs. Units: Houses generally have higher average selling prices, potentially appealing to property buyers seeking long-term capital appreciation. Units offer more affordable rental options.

Amenities and Location: Coorparoo's family-friendly environment, excellent school catchment zones, convenient location, and amenities make it appealing to a diverse range of renters.

Population and Rental Demand: With 44.3% of residents renting properties, Coorparoo has a higher-than-average rental demand.

Investment Potential: The low vacancy rate, steady demand for rentals, and projected population growth contribute to Coorparoo's investment potential.

 

Both suburbs offer enticing opportunities for property investors. Highgate Hill is known for its urban connectivity, cultural diversity, and balanced rental yields for houses and units. On the other hand, Coorparoo's family-friendly environment, strong rental demand, and attractive amenities make it a contender as well.

Investors interested in Highgate Hill might benefit from its urban lifestyle appeal and competitive rental yields. Coorparoo, with its low vacancy rate, strong demand for properties, and projected population growth, also presents a promising investment prospect. Ultimately, the decision between the two will depend on an investor's preferences, investment strategy, and the specific market dynamics they find most appealing.

At Rental Trends, personally we would choose Coorparoo. What are you thinking?

 

Contact us today to start your rental journey today!

 

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SOURCES: 

https://www.realestate.com.au/ (SUBURB DATA)

https://www.domain.com.au/ (SUBURB DATA)