QLD Different Sub-Regions of QLD

Hi guys,

I'm 23 yo, 4 IPs so far (2 in NSW, 2 in QLD - Beenleigh and Eagleby) and looking to buy a couple more early 2016 in QLD. Aside from Logan, I don't know the different areas of QLD too well so wondering if anyone could give me a very high-level view on the differences, including:
- Demographics
- Where people who live in the area generally work
- Any major planned improvements I should be aware of
- Any major threats (ie large supply of land around Ipswich from what i hear?)

When I refer to sub-regions, I mean:
- Gold Coast (more of a holiday destination? Won't perform as consistently as Brisbane metro?)
- Surfers Paradise (same as above?)
- North of Brisbane CBD (Chermside etc)
- South of Brisbane CBD (Coorparoo, Mooroka etc)
- Ipswich

I'd also like to know thoughts on demographics of the Upper Coomera area if anyone knows it.

I'm still identifying which areas to purchase in... moving forward I can afford to hold some negatively geared properties but prefer to keep the portfolio at least neutral. I'd like to put some houses in the portfolio but would also consider units closer to the CBD this time around.

Cheers

 

Remember holiday destinations often thrive on a low AUD. More people holiday interstate rather than overseas and more overseas tourists come to oz. For that reason the Gold Coast may be poised to do particularly well. Also the whole com games effect.

Given where you are already invested I would suggest you consider Miami / Burleigh / mermaid waters both to diversity your exposure in qld but also because these locations will see strong capital growth as the population of the coast grows in general.

 

There might not be much around the inner 5km ring of Brisbane anymore. Most of these regions have gone up fairly well the past 18+ months and appear to be leveling off again. However last weekend I was looking around the south east. Fairfield & Yeronga show some reasonable prospecting, but I'm wary of flood zones that will continue to have a negative impact on the growth. Occupier owners don't seem to mind but most investors steer clear of the flood zones. Greenslopes, Holland Park, Holland Park West and even out at Carina seem to be good growth areas for family style living. Again these areas have has a good run, and there might be better value elsewhere.

Annerley I find particularly interesting at the moment because it's one of the few areas within 5km of CBD that hasn't really seen a lot of growth, in fact many people who bought new town houses 2-3 years back have seen negative growth. I think this is down to some investors overspending on new developments while most saw better value elsewhere. Looking at the area fundamentals though- renting doesn't seem to be a problem because of the Uni and hospitals, train line, shopping close by, handy to the city (except for the traffic down Ipswitch Rd. There is now potential to pick up one of these 2-3 year old 2 or 3 bedroom town houses at a reasonable discount.

 

Thanks guys, was hoping to get some general idea of the demographics of each region if possible...

 

Could I ask you the same for Sydney?

 

Demographics of South East Queensland, or demographics of Queensland? Most people seem to think Queensland ends at Noosa!

I'll answer both fairly loosely.

Queensland regions:

• Far North - Very much driven by tourism, with Cairns (pop: 150k) being the main centre and gateway to the northern Cape York area.
• North - Centred on Townsville (pop: 190k), which is a major government and service hub. Largest Queensland city outside the south east. Has a port and a few industries including a nickel refinery, bit of mining influence around.
• Far Western Queensland - Not many people out this way, Mount Isa is the largest centre (pop: 22k) and is built around a big lead mine. Other towns out west are either dependent on mining or agriculture.
• Mackay-Whitsundays - Whitsundays region north of Mackay (pop: 85k) is based around tourism, with Mackay feeding off of the mining and industrial activity to the small coal mining centres inland to the west in the Bowen Basin. Some agricultural stuff immediately around Mackay as well.
• Rockhampton-Capricornia - Rockhampton is the main centre in Central Queensland (pop: 80k), the region is mainly agriculture with some government services, bit of tourism along the coast and some mining influence again from the Bowen Basin. Towns further inland are mining or agricultural.
• Gladstone - An industrial port city (pop: 45k) very heavily influenced by exports and mining, lots of commodities processed and exported here.
• Wide Bay-Burnett - Centred on the cities of Bundaberg (pop: 65k) and Hervey Bay (pop: 60k). Bundaberg is an agricultural services centre including sugar, while Hervey Bay is driven by tourism. There's also Maryborough which is a historical centre.
• Sunshine Coast - Originally grew on the back of tourism (pop: 300k), but there is a bit of other industry starting to pick up there now, including the health sector on the back of the new Sunshine Coast Hospital. Pretty much scattered development along the coast, with some of areas inland towards the Bruce Highway starting to be developed as well.
• Brisbane - 5 local councils make up the Greater Brisbane area (pop: 2.3 mil) including Brisbane, Ipswich, Logan, Redlands and Moreton Bay. Brisbane City generally fully developed except for a few pockets out west around The Gap, but the others all have significant areas of land available for development.
• Gold Coast - Tourism, need I say more? (pop: 600k)
• Darling Downs - Centred on Toowoomba (pop: 130k), the region is largely agriculture with some recent gas field developments as well. Fair bit of new infrastructure being developed out this side of Brisbane.

 

Looks like woody really nailed that one for you Johnny, anything else we can do for you this evening?

 

Look up ABS..

 

norwoodman, you're an absolute legend! This is very helpful!!!

Thanks a lot!

 

Go north brisbane.

 

Can I ask why north Brisbane? Ive done some research and am liking south/south west BNE but always like extra knowledge

 

Im pretty sure thats just a broad statement backed by people who live in north brisbane
Either is good i think , north does seem to have a more established feel/ market
But they still exist in the south which i think has better roads

 

Disclosure: I live in North Brisbane. Yes it's in my interest to promote it. From a ppor pov it feels nicer so I do so genuinely. Also as someone who didn't grow up in bne I find the North of river vs South of river debates amusing. At work people like to check in to see which side of the river people live and then they gang together.
It's calmer than the South. Same side of the river as the cbd. Yes it does have a nicer feel i think. But from a property investment pov that may not matter. And there's suburbs on the South side that are really nice like Bulimba by Oxford Street.
Happy for you to ask specific questions about any particular suburb.
It's interesting that the differential holds over time. One could speculate that the South side might catch up or it might always be south of the river and the North side stay higher for something the same number of kms from the cbd.
What suburbs were you thinking South/west? My aunt lives in Fairfield. Can just cut across to the uni on the foot Bridge. Quite close to city. Be careful of flooding there though.

 

I wouldn't go regional. Stick to Bne. Unless you really have some intel that a regional location has some great and long term (key) growth

 

I'll add, stick to Brisbane where there is no more land to be released. This is #1 key. If there's more land to be released, then your supply-demand equation goes out the window. (Supply and demand drives price growth.) You'll probably struggle with price growth for a while until the land is all bought up.

Then in your decision it's worth thinking about the location of CBD, Train stations, road routes, hospitals, good schools, universities, parks, demographics. Also consider vacancy rates, rental returns, what can you do on that land, eg. any splitter opportunities? I have gone for a Brisbane bay location myself... little or no more land to be released in the area, I love water views and the laid back neighbourhood feel plus I believe it provides better and less extreme air temps at all times of the year. Trains, primary school, shops nearby.

And importantly... stay away from flood zones.

 

I can definitely relate to this as well, having not grown up in Brisbane. I live about 4km north of the CBD, and I frequently get given the excuse from people on the south side that where I live is too far away even though I'm hardly 10 minutes from the city!

 

Where do they sit on the league table?

 

Very well thanks to the steroid supply from nudgee college. Only the highest quality gear

 

While everyone points to the land to be released , there are certain areas where the undeveloped land is undevelopable due to flooding etc .

Also much of the new developments are selling for more than the existing , older , but often better located stock.

You're unlikely to buy a H&L house on a decent block , for under 250 K.

Cliff

 

I really have to brilliant reason to choose the south/south west other than they are the suburbs I have read on PC the most. Very scientific I know! :-D

But we were starting to narrow it down as we know our limit is about $400k, looking for min 3 bedroom, something that doesn't need renovations straight away as we are interstate and outside the flood zones but close to public transportation/reasonable shopping/entertainment precedents. Yield would be great but looking at the 4-5% mark with the strategy to hold mid to long term. Due to our price limit, I know we aren't getting any closer than 15-20km so now just trying to narrow down those suburbs.