I believe that Brisbane, Logan and Gold coast real estate markets will have some standout performers over the coming year and below are my three top predictions for property in those areas.
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Disclaimer
These predictions are in no way are guaranteed actual performance of growth for the Suburbs mentioned in this report.
Certain types of properties will also always outperform other properties in similar areas and in every suburb there are other sub-markets consisting of different types of properties in more or less desirable locations.
This report is not intended as financial advice and should be considered as information only. The opinions are that of the author only and do not take into consideration you specific circumstances.
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BRISBANE PREDICTION – CAMP HILL HOUSES
Camp Hill has had an exceptional run over the last decade and I do not see any signs of this slowing. Being just 6 kms from the Brisbane CBD Camp Hill has become a very sought after and tightly held location especially for investors and young executive couples wanting to start a family.
With a recent lift on the demolition zoning restrictions on a large portion of post war homes in the area small developers are now starting to pay premium prices for such properties. Right now there is good money to be made by identifying and negotiating a good price for a tired home on a good size block of land in Camp Hill and putting in a development application to demolish the home and build townhouses.
There is also great money to be made by identifying structurally sound but tired looking, well located homes in Camp Hill and performing a budget cosmetic renovation.
With the recent flooding that Brisbane has experienced I believe that high and dry areas so close to the city like Camp Hill will become more and more in demand over coming months thus pushing up prices further.
Well located but tired looking homes can currently be purchased in Camp Hill for the high $400k’s to the mid $500k’s.
I predict that for the next year to 2012 Camp Hill’s median house price will achieve another great year of growth of around 20%.
CAMP HILL
Houses
| Capital Growth in Median Prices | ||
| Camp Hill | Brisbane City | |
| Period | % Change | % Change |
| 2011 | 16.1% | 1.2% |
| 2010 | 13.0% | 11.2% |
| 2009 | -3.6% | -1.0% |
| 2008 | 7.5% | 7.6% |
| 2007 | 25.9% | 18.3% |
| Recent Median Sale Prices | ||
| Camp Hill | Brisbane City | |
| Period | Median Price | Median Price |
| December 2010 | $ 645,000 | $ 535,000 |
| November 2010 | $ 627,642 | $ 526,000 |
| October 2010 | $ 621,000 | $ 550,000 |
| September 2010 | $ 642,750 | $ 550,000 |
| August 2010 | $ 675,000 | $ 549,000 |
| July 2010 | $ 627,000 | $ 550,000 |
| June 2010 | $ 674,000 | $ 551,000 |
| May 2010 | $ 657,500 | $ 550,500 |
| April 2010 | $ 720,000 | $ 547,500 |
| March 2010 | $ 638,500 | $ 539,000 |
| February 2010 | $ 577,000 | $ 530,000 |
| January 2010 | $ 640,000 | $ 540,000 |
Source RP Data
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LOGAN PREDICTION – LOGANLEA HOUSES
Loganlea is about to undergo some pretty significant changes over the next couple of years. The council has formed a proactive view towards developing the city and doing everything they can to ensure that Logan can keep up with predicted migration levels without putting pressure on its current infrastructure.
This spells for massive reconstruction efforts on roads and big changes in what you can and cannot currently do with the currently underdeveloped parcels of land nearby to the Logan Hospital. It is no longer viable for councils to stretch their borders and open up more parcels of land especially due to the costs of building roads, transport infrastructure and hospital access for the aging population.
Loganlea does have all the variables that make up for a future satellite city of Brisbane. With the Hospital, High School, University, train system, shops, industry and easy access to the Pacific Highway and Logan motorway already in place; the next logical step is to develop the underutilised land that surrounds.
Well located blocks of land ranging from 600m2 to 900m2 with older homes can currently be purchased within walking distance from the train and hospital for around the $300,000 mark, but I do not believe that real estate will stay this affordable for long.
My prediction for Loganlea during 2011 will be above 20% capital growth on the median house price.
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LOGANLEA
Houses
| Capital Growth in Median Prices | ||
| Loganlea | Logan City | |
| Period | % Change | % Change |
| 2011 | -14.1% | 3.9% |
| 2010 | 6.5% | 6.8% |
| 2009 | 0.0% | 0.7% |
| 2008 | 8.8% | 7.6% |
| 2007 | 18.8% | 18.4% |
| Recent Median Sale Prices | ||
| Loganlea | Logan City | |
| Period | Median Price | Median Price |
| December 2010 | $ 344,000 | $ 385,000 |
| November 2010 | $ 316,000 | $ 388,750 |
| October 2010 | $ 390,000 | $ 375,000 |
| September 2010 | $ 325,000 | $ 377,100 |
| August 2010 | $ 328,000 | $ 385,000 |
| July 2010 | $ 327,500 | $ 394,450 |
| June 2010 | $ 285,000 | $ 390,000 |
| May 2010 | $ 327,500 | $ 390,000 |
| April 2010 | $ 330,000 | $ 394,500 |
| March 2010 | $ 333,000 | $ 377,500 |
| February 2010 | $ 385,250 | $ 384,000 |
| January 2010 | $ 295,000 | $ 386,900 |
Source RP Data
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GOLD COAST PREDICTION – BROADBEACH UNITS
With migration to the Gold Coast sitting at around 15,000 people per year and only a finite supply of land of land remaining the desirable beachside locations like Broadbeach should see some pretty good growth this year.
Broadbeach has of recent years come into it’s own as the style capital of the Gold Coast. Many fall in love with the trendy mix of laid back cosmopolitan cafe lifestyle, with city style living. Big changes are planned for Broadbeach in coming years and property investors will benefit greatly from this by buying quality Broadbeach properties now. Predominantly beach-side of the Gold Coast Highway and nestled between Surfers Paradise and Mermaid Beach, Broadbeach seemingly has it all. Shopping, parks, sporting and recreation, beautiful beaches, the Gold Coast convention and exhibition centre , Jupiters Casino, nightclubs, bars, cafes, fine dining and the list goes on.
The light rail project will have a positive impact on Broadbeach making commuting along the coast a breeze. Recent upgrades to the foreshore has made this beach-side suburb a very attractive place for families and retirees. The council has become very proactive with the area, not only for development but also with community activities such as festivals including the yearly Blues on Broadbeach Festival, and the Jazz and Food Festival in August.
Currently there are many great medium to long term investment opportunities. As an area earmarked for huge population growth over coming years it is hard to go past Broadbeach as the ideal location for both future capital growth potential, and ever increasing rental yields. 2 bedroom older style units with renovation potential can be currently purchased for the mid $300k’s, and nearby premium luxury properties can reach 10 million dollars or more. As this suburb increases in popularity, and developers once again get access to funds, I can see these older small blocks becoming very valuable real estate.
BROADBEACH
Units Statistics
| Capital Growth in Median Prices | ||
| Broadbeach | Gold Coast Area | |
| Period | % Change | % Change |
| 2011 | 11.7% | 0.0% |
| 2010 | 4.4% | 6.0% |
| 2009 | 3.4% | -5.1% |
| 2008 | -16.3% | 1.3% |
| 2007 | 14.3% | 8.6% |
| Recent Median Sale Prices | ||
| Broadbeach | Gold Coast Area | |
| Period | Median Price | Median Price |
| December 2010 | $ 480,000 | $ 380,000 |
| November 2010 | $ 620,000 | $ 377,500 |
| October 2010 | $ 457,500 | $ 375,000 |
| September 2010 | $ 365,000 | $ 360,000 |
| August 2010 | $ 550,000 | $ 375,000 |
| July 2010 | $ 400,000 | $ 380,500 |
| June 2010 | $ 381,250 | $ 396,000 |
| May 2010 | $ 411,500 | $ 390,000 |
| April 2010 | $ 615,000 | $ 410,000 |
| March 2010 | $ 545,000 | $ 400,000 |
| February 2010 | $ 440,000 | $ 395,000 |
| January 2010 | $ 447,500 | $ 411,400 |
Source RP Data