Hamish Bowman from Ray White New Farm comments on CoreLogic's latest statistics of the highest and lowest performing suburbs North vs South of the Brisbane River.
The debate never ends, is North or South of the Brisbane river the place to live?
CoreLogic has just released their latest statistics on the 50 highest and lowest performing suburbs in Brisbane based on 12 month change in median value, for houses and units.
Of the best performing, 26 suburbs were located on the North side of the Brisbane River, while 24 were located on the South side.
The top three suburbs were:
The best 30 performing suburbs were all for houses, and the top performing suburb for units was The Gap coming in at number 34, at $493,116 with a 5.4 per cent change.
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Hamish Bowman from Ray White New Farm said the best performing suburbs are no surprise as the inner city ring is now very expensive for houses.
“Ashgrove for example is relatively close to the city and has a lot of beautiful tree lined streets, great schools, and has good community and retail precincts.”
“Auchenflower would have the same appeal.”
Moggill came in at number five on the list at $574,937 median value and 10.2 per cent change.
“This would result from the Legacy Way tunnel and infrastructure in the area. Moggill is now reachable on a daily commute.”
“Traditionally there has been very low annual growth but the infrastructure has given it a kick along.”
1/ 30 - 32 Griffith Street, New Farm for sale by Hamish Bowman of Ray White New Farm, as seen on Luxury List
Many suburbs with units were on the lowest performing list including New Farm which was number three at $546,670 and -2.4 per cent median change.
Mr Bowman told WILLIAMS MEDIA these suburbs weren’t a surprise either as it was known three years ago that the unit oversupply was going to hit all of Brisbane, but particularly suburbs like New Farm, Teneriffe, Newstead and Fortitude Valley.
“There were over 10,000 apartments coming in online in the inner North area and there is probably another six months of absorption left.”
“The sky was littered with cranes up until a year ago.”
“In saying that, I have seen an increase in sales activity in New Farm in the last two months so I think that the oversupply is pretty close to bottoming out.”
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Mr Bowman said in New Farm there has been a swing back to the older style, very well built and positioned apartments.
“The old 1970s and 80s block units. This is a result of the developer style, investor driven unit blocks that have been built recently.”
He said the royal commission has tightened up credit for a lot of developers in Brisbane and Australia wide “so only the well cashed up developers are in the market now”.
“The rest haven’t been able to secure finance and get pre sales, hence why there is not much stock being built at the moment.”
“The banks have even said they won’t fund at all for units in parts of South Bank, which has had a negative impact on the market,” Mr Bowman continued.
South Brisbane was 46 on the CoreLogic lowest performing suburbs at $439,973 and -9.3 per cent change.
West End came in at 44 at $479,611 median value and -7.4 per cent change in median value.
“West End is tightly held as it is multicultural ownership based. Traditionally units don’t sell often.”
“Demand is high, supply is low and that will continue based on the same dynamic.”
12/135 Macquarie Street, Teneriffe for sale by Hamish Bowman of Ray White New Farm, as seen on Luxury List
Mr Bowman said his view is that Brisbane is starting to develop an 80:20 dynamic like Sydney and Melbourne have.
“20 Per cent of suburbs will continue to outperform market averages, and 80 per cent will be susceptible to market cycles.”
“In Sydney Point Piper and Dover Heights will continue to outperform other suburbs, and in Brisbane New Farm, Teneriffe, Kangaroo Point, Ascot and Hamilton will, as they are close to the city and the river, they are elevated and have great amenities.”
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