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2021 is looking to be one of the best years for the Brisbane property market.
A Domain Rental Report for the 2020 December Quarter shows us that Brisbane has become extremely popular for inter-state migration with its sun-kissed outdoors, lifestyle, and affordable properties. Definitely a winner of the regional property market trend in Australia.
Rents for both houses and units have soared to the highest values since the last 7 years across the growth suburbs in Brisbane.
The current state of the Brisbane property market may paint an exciting picture for interested property buyers. But with that, the house prices have also reached new heights!
These suburbs are in no particular order, and we fully recognise that there are other great suburbs to invest in we may have missed.
Featured by Property Update, this inner-ring suburb is a good place to invest in 2021.
Similar to other popular suburbs within a 5 km radius from the CBD like Ashgrove and Auchenflower, Bardon is also a leafy, residential suburb ideal for families.
Bardon is enjoying fairly high capital growth rates. But, the high house prices are an obstacle to overcome, especially with rental yield being at 2.8% for houses, which is pretty low compared to the other suburbs on our list.
Still, the high growth rates are worth your attention, and you might score a great deal since the suburb isn't too overhyped for investors.
- Median house price Bardon: $1,170,000 for houses, $788,000 for units
- Average rental yield Bardon: 2.8% for houses and 2.6% for units
- 5 year compound growth rate for Bardon: 7.4% for houses and 5.8% for units
⭐ The Brisbane suburb to invest in if: you want high compound growth rates on houses.
Lending a vision of what the Brisbane neighbourhood ought to be like, Graceville is a picturesque suburb that made into the 9 News’ top 10 growth suburbs in Brisbane.
Bordered by the river, parks and wide streets, Graceville is a haven for families to enjoy a sense of community.
With easy access to schools and the University of Queensland, this suburb is likely to be a winner among families with children and students, eager to make use of spacious homes with its own backyard and a serene atmosphere to indulge in.
There's no wonder it has a 0.9% vacancy rate and a 23% 3-year forecasted growth rate. It's a great choice for high growth in the long-term.
- Median house price Graceville: $1,034,000 for houses, $450,000 for units
- Average rental yield Graceville: 3.0% for houses and 4.5% for units
- 5 year compound growth rate for Graceville: 7.3% for houses and 2.1% for units
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⭐The Brisbane suburb to invest in if: you want your tenants to be families with high disposable incomes.
Known for its historical significance, Ashgrove has been enjoying a 36% growth over the past 5 years.
It's a hilly suburb with lots of greenery. It scores high for walkability, shopping, and lifestyle, and it's only a 5km distance to Brisbane CBD.
Disposable income levels are growing in this suburb with most residents working in the service industry, according to Property Update. It's found popularity with families since reputable schools are in the neighbourhood.
Great option if you can afford it with high growth rates for houses, healthy rental yields and a stable tenant market.
- Median house price Ashgrove: $1,150,000 for houses, $430,000 for units
- Average rental yield Ashgrove: 2.7% for houses and 4.8% for units
- 5 year compound growth rate for Ashgrove: 7.0% for houses and -1.4% for units
4. Carina Heights
⭐The Brisbane suburb to invest in if: you’re after affordable properties with high growth rates.
This suburb shows the highest 1-year and 3-year forecast rates at 7.3% and 24% respectively, according to a 9 News report on the best suburbs to invest in Brisbane.
It also scores high for convenience and community, resulting in a 1.92% vacancy rate as of right now.
The property prices are fairly lower compared to most of the growth suburbs with the median price of houses being around $747,500 with a rental yield of 3.3%.
Carina Heights ticks almost all the boxes. Affordable properties, high rental yields, good growth, and easy to find tenants.
Getting your hands on a rental here might be tricky since Carina Heights holds such a promising future, but it truly is one of the clear winners of the 2021 property market in Brisbane.
- Median house price Carina Heights: $747,500 for houses, $465,000 for units
- Average rental yield Carina Heights: 3.3% for houses and 5.0% for units
- 5 year compound growth rate for Carina Heights: 4.8% for houses and -0.6% for units
⭐ The Brisbane suburb to invest in if: you're a first-time buyer on a budget.
Strathpine is located north of Brisbane in the Moreton Bay region.
It’s one of the best suburbs to invest in the Brisbane property market for 2021 because it shows a 5-year growth rate of 30% and a rental yield nearing 5%.
The house prices are on the lowest end of the spectrum so if you’re looking for low capital investments, this suburb is likely to interest you.
Vacancy rates are super low at 0.5% in January 2021.
We can strongly recommend this for first-time investors who don't have a lot of capital to go around.
- Median house price Strathpine: $455,000 for houses, $272,000 for units
- Average rental yield Strathpine: 4.4% for houses and 6.1% for units
- 5 year compound growth rate for Strathpine: 4.8% for houses and 0.3% for units
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Oxley is a South-Western suburb about 10 km away from Brisbane CBD, known for its convenience and wholesome community.
Growth rates are modest but house prices are about half of most other suburbs on this list.
It's worth your attention if you're struggling to get your hands on a property in hyped-up suburbs like Strathpine.
- Median house price Oxley: $590,000 for houses, $410,000 for units
- Average rental yield Oxley: 4.0% for houses and 5.1% for units
- 5 year compound growth rate for Oxley: 3.6% for houses and 2.1% for units
This is a tranquil suburb with large parks, cycleways and high scores for walkability. Super friendly for families!
These affordable houses and units show a 35% 5-year growth rate and a 5% 12-month growth rate going forward according to a 9 News property report.
Brisbane CBD is only a 15-minute drive away while houses are spacious, which plays a part in making vacancy rates as low as 0.6% as of right now.
- Median house price Kedron: $797,500 for houses, $386,000 for units
- Average rental yield Kedron: 3.3% for houses and 5.0% for units
- 5 year compound growth rate for Kedron: 5.6% for houses and -3.2% for units
Some honourable mentions for suburbs to invest in Queensland
If we look outside of the Brisbane metropolitan area itself there are plenty of talks on a number of other growth suburbs in the Queensland property market.
Suburbs like Toowong, Keperra, and Redland Bay have gotten lots of hype for their growth rates and attractiveness to tenants.
Most jobs here are in the Healthcare and Social sectors, which may attract a high supply of tenants to this suburb in the future.
Jason Andrew, in an interview with RealEstate.com.au that Redland Bay seems to be promising.
On the other hand, Sunshine Coast and Gold Coast suburbs are also worthwhile considering, especially suburbs such as Sunrise Beach, Currumbin, Tugun, and Broadbeach Waters because of their incredibly high growth rates in the regional-favoured property market.
Final thoughts on which suburbs to invest in Brisbane for 2021
Domain Rental Reports tell us the rental prices in Brisbane have overtaken those of Melbourne’s!
The median price of a house in Brisbane was $616,387 in December 2020, which was at a record high, according to the Domain House Price Report. By then, there was a 5.6% rise in house prices.
But units - let’s just say it’s not their turn to shine this year. Their prices are at 2014 levels, having spiraled down by 3% compared to last year. So if you're looking to dip your toes in the Brisbane and Queensland property market - stay away from units for now.
Overall, Brisbane is a jackpot for investors in 2021. Just try not to be tempted by apartments in high-rise buildings, new expensive housing estates, and properties in blue-collar areas for the time being
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The entire market was not considered in selecting the above products.