Queensland and Brisbane hotspots for investment in 2023
The successive rate hikes did not spare Queensland and Brisbane from the adverse impacts on buyer confidence — a bounce back, however, could be in the cards for the state and its capital city by mid-next year.
Upside Realty director James Kirkland said the market correction would likely continue over the first half of 2023 and gradually recover in the months further.
“I think we will see prices stabilise and then bounce back, but we may not be quite at the bottom just yet,” he told Your Investment Property.
“Another good win investors had this year was the abolishment of the Queensland land tax which has meant our state is still a favourable investment option.”
Mr Kirkland said it is crucial for investors to consider their own investment strategy for potential capital growth and interest rates.
“We’re finding the majority of investors looking to buy around the $200,000 to $300,000 mark are more resilient to those rises,” he said.
Meanwhile, PublicSquare CEO and founder Dean Arnold said investors must focus more on diversification and shy away from high-end properties as there are currently fewer high-end professional jobs in the state.
“Everything else in terms of lifestyle and infrastructure rivals southern neighbours. The ramp-up to the 2032 Olympics seems already underway,” he said.
“Also, the average buyer is priced out of Brisbane suburbs and now looking to Logan, Ipswich, and the Gold Coast. Especially Ipswich.”
Brisbane’s investment hotspots to watch out for in 2023
Your Investment Property also reached out to Hotspotting director and founder Terry Ryder, who provided a list of investment hotspots in regional Queensland and Brisbane for the year ahead.
Mr Ryder said affordability and proximity to employment nodes are the greatest selling points of Ipswich City.
Infrastructure is also a key factor, supported by the development of Warrego and Cunningham Highways, the Ipswich Motorway, and other rail links connecting many suburbs.
“Ipswich has shown strong price growth in the past – prices rose strongly in the five years to 2009 – and this market is poised for another period of growth, following big increases in sales activity in 2021 and the first half of 2022,” Mr Ryder said.
Suburbs in the Olympic Precinct are already benefitting from the extensive construction being carried out in association with the multi-billion-dollar economic development known as Australia TradeCoast – which encompasses Brisbane Airport and the Port of Brisbane.
“Research into the impact on real estate in previous host cities for the Olympics – and other major global events staged in Brisbane – shows that suburbs closest to the major event venues experience the greatest uplift in property prices,” Mr Ryder said.
“This suggests the suburbs of the Inner South Precinct will experience considerable impact from their proximity to the main Olympics venue, The Gabba, which will be upgraded in a $1bn redevelopment.”
Southern Moreton Bay Islands
The affordability and the significant lifestyle appeal of Southern Moreton Bay Islands have resulted in strong buyer demand over the past two years.
In fact, most of the Southern Moreton Bay Islands have median house prices in the range of $300,000 to $400,000, significantly lower compared to the nearby mainland suburb of Redland Bay ($810,000) and the Greater Brisbane Area ($842,000).
Logan City is considered to be one of Queensland’s fastest-growing communities. It is home to two of Queensland’s Priority Development Areas at Greater Flagstone and Yarrabilba.
This region has a significant infrastructure pipeline that makes it attractive to potential investors.
“At present, there are publicly funded infrastructure projects totalling $18bn underway,” Mr Ryder said.
“The more notable projects are improving the key transport corridor, including the $2.1bn Coomera Connector, while the Logan Hospital is undergoing a $540m upgrade and work is underway on the $1.5bn Crestmead Logistics Park.”
Moreton Bay Region
Moreton Bay Region’s coastal towns, beaches, and accessibility to the city are the key selling points to potential investors.
Most suburbs in Moreton Bay Region have a median house price of around $600,000 to $700,000.
“This, along with its affordable prices and easy access to major employment nodes, lifestyle precincts and amenities ensures the region is popular with first-time buyers, families and investors,” Mr Ryder said.
“The region is one of the highest-growth LGAs in Australia and is predicted to have a population exceeding that of Tasmania by 2031.”