Andrew Galloway is selling his investment property in Loganlea, which has been identified as one of Queensland’s most affordable growth suburbs. Image: AAP/John Gass.Source:News Limited
THESE are the best performing cheapie suburbs in Queensland. Find out which areas buyers on a budget should be targeting.
QUEENSLAND’S best growth suburbs for buyers on a budget are in lifestyle locations and affordable hot spots in Brisbane’s backyard, a new report has revealed.
For an investment property under $500,000 and with good capital growth prospects, look no further than Palm Beach on the Gold Coast, Noosaville on the Sunshine Coast and Loganlea, south of Brisbane, where values have increased by up to 20 per cent in 12 months.
The Top Affordable Suburbs Report, released by researcher CoreLogic, identifies suburbs where property values are below half a million dollars and have shown strong capital growth.
These suburbs are good targets for entry-level buyers, offering affordable real estate, improving infrastructure and strong track records that suggest ongoing strength.
Palm Beach holds the number one spot as the most affordable for capital growth in the state, according to the report.
Unit values in the beachside enclave have jumped 20.2 per cent in the past 12 months and more than 52 per cent in five years to a $471,758 median.
But you can still snap up a two-bedroom apartment a few streets back from the beach there for $379,000.
After Palm Beach, the second most affordable growth suburb in the state is Noosaville on the Sunshine Coast, where unit values have gained more than 14 per cent in the past year to reach $486,468.
Alexandra Headland is also in the top 10 list compiled by CoreLogic, with units in the beachside suburb increasing in value by more than 12 per cent in a year.
But you can still get a two-bedroom unit with ocean views in the suburb for $429,000.
GOLD MINE FOUND IN BRISBANE BACKYARD
CoreLogic senior research analyst Cameron Kusher said first home buyers were still active in Queensland and the more affordable end of the market was not facing the same pressures as the more expensive suburbs, which explained why suburbs like Loganlea, Ripley and Jimboomba were performing well.
“We are finding the lower end of the housing market is the higher value stock — even in Brisbane,” he said.
“We might not see the same gains over the next 12 months or three years, but there’s still going to be demand in these affordable markets.”
The latest CoreLogic home value figures reveal a strengthening of affordable and lifestyle locations, particularly on the Sunshine Coast, which recorded a 5.5 per cent increase in home values in the past financial year.
HOME FIT FOR HARRY AND MEGHAN
Mr Kusher said the Gold Coast housing market was starting to cool off, but demand was still strong for the Sunshine Coast.
“These people from Sydney and Melbourne who want to buy a holiday property are looking at these areas and seeing pretty good value,” Mr Kusher said.
“I think that’s where the buyers are coming from.”
In Loganlea, about 25km south of Brisbane, house values have increased more than 14 per cent in the past year to a still very affordable $391,469.
Andrew Galloway is selling his investment property, which is on the market for just $339,000.
The four-bedroom, two-bathroom brick house at 10 Starling St, Loganlea, has been returning about $345 a week in rent.
Mr Galloway said the property had recorded solid capital growth in the past 11 years he had owned it and he had decided to take advantage of that.
“I think it’s achieved the capital gain it’s going to achieve in the time frame I’m going to have it,” he said.
Mr Galloway said he had noticed gentrification in and around the street in the past decade, which had made it more appealing.
Selling agent Pamela Anemaat of Raine & Horne Beenleigh said there had been an increase in large blocks in the suburb being subdivided by developers offering house and land packages, which had helped generate interest, particularly from first home buyers.
Mrs Anemaat said Loganlea was also popular suburb for investors because it was a high rental area and still so affordable.
“It is a feast for southern buyers, and they are moving up here and purchasing up here because they just can’t afford to buy a new home down there,” she said.
QLD’S 10 BEST PERFORMING AFFORDABLE SUBURBS
Suburb Property type Median value Value change Value change
12 mths 5 yrs
1. Palm Beach Units $471,758 20.2% 52.2%
2. Noosaville Units $486,468 14.4% 36.9%
3. Loganlea Houses $391,469 14.3% 43.8%
4. Mudgeeraba Units $399,637 13% 37.8%
5. Alexandra Headland Units $397,297 12% 36.6%
6. Ningi Houses $458,469 9.2% 11%
7. Jimboomba Houses $494,933 9.1% 22.1%
8. Ripley Houses $391,736 8.7% 23.9%
9. Elanora Units $372,760 8.6% 29.7%
10. Narangba Houses $493,418 8.3% 26.9%
(Source: CoreLogic, based on data to March 2018)
Properties in Sunshine Coast Beaches attracting Buyers
The Sunshine Coast is known for its beaches, but buyers often forget about the beautiful labyrinth of rivers that snake inland from the ocean.
Tranquil, quiet and picturesque whatever the season, these canals and waterways offer the perfect view to enjoy from a patio or balcony, not to mention easy access for fans of boating and water sports.
Although waterfront homes tend to attract buyers in the multi-millions, we’ve sourced these five rare finds dotted across the Sunshine Coast for under $950,000 — so you can save your pennies for a boat to moor at that empty jetty.
26 Serenity Circuit, Maroochydore QLD 4558
4 bed, 2 bath, 2 car
Agent: Amber Werchon Property, Trudi Fernandez 0417 137 374
This spacious home is the only property in its estate to have completely unfettered views of the water, framed by a rainforest reserve which can never be developed.
You can even access the river boardwalk directly from the back of the house: the perfect way to spend a spring afternoon.
Inside, the house is bright, sleek and contemporary, with plenty of light and air to breeze through the open plan living space.
The best spot, however, has to be the private balcony from the master bedroom, where, at dawn and dusk, the light bounces off the water, reflecting the rainforest in a postcard-worthy scene.
14 Sarina Place, Maroochydore QLD 4558
Price: Offers in the mid-$900,000s
4 bed, 2 bath, 2 car
Agent: Blue Moon Property, Kelly Rowling 0437 443 013
This modern designer terrace house has a gorgeous river frontage, complemented by a spacious deck and the added luxury of a spa from which to indulge in sunset views.
Minimalist and immaculate, the home is a low-maintenance option for those looking to avoid renovations and fussy design.
The open plan living and kitchen area features every convenience, from dual wall ovens to custom lighting, and are designed with entertaining in mind.
2b Admirals Court, Mooloolaba QLD 4557
3 bed, 2 bath, 4 car
Agent: Ray White Mooloolaba, James Goldsworthy 0400 635 141
With an extremely reasonable pricetag, this freehold home features a lovely easterly aspect, with a private entertaining deck almost on the water.
Bright, neat and low-maintenance, the property would make an excellent choice for downsizers, first-home buyers or investors.
Agent James Goldsworthy said the home’s affordability set it apart from other waterside properties in the area.
“It’s a very unique street, it’s the only street of its kind not only in Mooloolaba but that we know of in the region,” he said.
“They’re small lots but they offer entry-level waterfront buying in what is really the heart of Mooloolaba.
“With the canal front there you’ve got access to the spit, so you can go out to the deep water, whether it be in a small boat or a canoe.
“It’s walking distance to shops and if you jump on the bike or get in the car, you’re three minutes from the beach, so it’s a pretty central Mooloolaba location.”
13 Twin Waters Drive, Twin Waters QLD 4564
3 bed, 2 bath, 4 car
Agent: Lydia Kirn Real Estate, Lydia Kirn 0412 542 644
Set on 848 square metres, this property is generously proportioned and features manicured gardens, a pool and all-weather entertaining area outside.
It’s only a few steps across the road before you hit the banks of the river, surrounded by established greenery and parklands.
The house itself is large and homey, a comfortable homestead well-loved by its owner of 18 years and just waiting for a new family to make it their own.
8 Boreen Parade, Boreen Point QLD 4565
Price: Offers over $900,000
4 bed, 2 bath, 2 car
Agent: Choice Property, Nicky Roche 0433 118 575
This charming character home is a gem for those after a piece of historic Queensland design.
Encompassing three separate buildings, the property features a beautifully restored Queenslander, its original 1940s boathouse and the vintage outhouse, now renovated into a studio retreat.
Agent Nicky Roche said the home’s lakefront views along with its updated vintage aesthetic made it a rare find — particularly for this price point.
“It’s 34 metres of lakefront, which is incredibly unique — it’s probably the best aspect of any lakefront property in Boreen Parade,” she said.
“The challenge with those lakefront properties is the properties behind them are quite high, but with this property there’s complete privacy, nobody can look into the back garden at all.
“The deck is one of the salient features; it’s very large and very deep and it overlooks the lake, so you can sit there and enjoy your afternoon cocktails. It has actually got these little lights built into the deck itself, which creates a fairy-light feeling of peace and tranquility.
“It allows you to just sit and be present in nature, while you’re not that far from Noosa Heads.”
Why Noosa is now the strongest property market in Queensland
Noosa is on track to take out the title of Queensland’s best performing property market for 2018, as new figures reveal it has delivered the strongest growth in the state over the past 12 months.
Noosa’s growth eclipsed that of both the Gold Coast and Brisbane, according to data from the Real Estate Institute of Queensland, making it Queensland’s most prestigious property market.
But in the 12 months leading up to June, demand in the area reached new heights – the median house price grew 6.9 per cent to $695,000 and units by an impressive 10.2 per cent to $540,000.
It has been a heady year for the Noosa region – earlier this year a $22 million Sunshine Beach trophy home made headlines when it set a new record for the Sunshine Coast.
By rights, as one the biggest real estate deals in Queensland in recent years, the house at 21-23 Webb Road — a seven-bedroom, eight- bathroom beachfront estate — should have been a jaw-dropping, albeit rare, headline-stealer.
But Noosa was already up in lights. Less than two weeks earlier, Pat Rafter’s $18 million beachfront mansion had gone under contract.
REIQ chief executive Antonia Mercorella said Noosa had all the ingredients for price growth.
“This is a highly desirable part of the world, with stunning natural features, world-class beaches, beautiful climate year-round, outstanding shopping and dining precincts, and, crucially, exclusivity,” she said.
“There is limited housing supply being added to Noosa and competition is obviously driving price growth.
“Looking forward, once the Bruce Highway upgrades are completed and commuting to Brisbane becomes more feasible, it’s likely we’ll see added demand for Sunshine Coast living.
“This area would benefit from greater supply levels, undoubtedly.”
Instead, he said, the region’s infrastructure boom was driving a shift in demographic of Sunshine Coast buyers.
“Billions of dollars have been invested, including transport, tourism and medical sector … the stimulus for growth on the back of these projects is reshaping the traditional buyer profiles,” he said.
The house was snapped up by a mystery buyer in a deal worth more than $10 million and Mr Reed said the momentum of the market had shown no signs of slowing down since then.
“I’ve just listed another incredible Noosa North Shore property at 2 Frying Pan Track and the interest has been very positive with buyers from interstate and internationally,” he said.
“Access to international travel and upgrades to digital infrastructure is enabling younger wealthy industry leaders and expats to buy in Noosa with confidence.
“This has already had a positive knock on effect to the luxury property market in Noosa.
“When you couple this with traditional upward pressure from baby boomers capitalised from southern markets making a lifestyle transition, it’s creating great selling conditions for Spring.”
The rest of the Sunshine Coast region delivered similarly strong results for the year to June 2018.
Overall, the Sunshine Coast local government area grew 6.5 per cent to a median house price of $575,000.
Previous frontrunner the Gold Coast continued its trajectory of strong growth, with the median house price increasing 4.5 per cent to $622,031.
“This is not a completely unexpected result in the post-Games period as we see normal activity resume,” Ms Mercorella said.
The Gold Coast is the biggest apartment market in Queensland, selling more than 10,000 units in the 12 months to June 2018.
It was also one of the few unit markets in Queensland to deliver positive growth, adding a slender 0.9 per cent to values to a median of $429,000.
The Coast area where it’s almost impossible to get a rental
THE Caloundra coastal area is the tightest rental market in Queensland, latest data has revealed.
The Caloundra coast shared the mantle with Gympie for the tightest vacancy rates across Queensland in March, with just 0.5 per cent of rental properties vacant in both areas.
Noosa was the third tightest market in Queensland, with 0.8 per cent vacancy.
The Sunshine Coast hinterland was the easiest place in the region to find a rental property, with 2.2 per cent of rental properties available.
But the figures reflected a slight easing from the Sunshine Coast’s strangled rental market conditions at the end of December, when both Caloundra and Maroochydore sat at 0.4 per cent vacancy.
While the figures are bad news for those trying to secure a lease, Real Estate Industry Queensland CEO Antonia Mercorella said the results were positive for investors after several years of “bleak” market conditions.
Ms Mercorella said the Australian Prudential Regulation Authority should ease restrictions on lending to allow more property investment and increase the number of rental properties available.
“Some of our markets, such as the Gold and Sunshine Coasts, remain uncomfortably tight and we would like to see more investors enter those markets, however APRA’s tightened lending criteria is not encouraging investors to consider property,” she said.
Data from SQM Research up to April 20 revealed rental prices had jumped since the end of last year, with rents for homes up 3.2 per cent and units up 3.7 per cent.
Larger homes in particular have seen significant price growth, with rent prices for three bedroom houses increased 12.3 per cent since April 20, 2015.
QUEENSLAND’S TIGHTEST MARKETS
Sunshine Coast: 1%
Gold Coast: 1.1%
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