QLD How badly is the appt oversupply issue likely to affect Coorparoo?

I'm helping a friend with a buy. Budget is a strict 300k and they want to be near the city with good yields if they eventually move out.

I'm thinking of Coorparoo because of the busway, the train station and all the new developments.

My focus will be on older style walk ups / red bricks. Not interested in paying a premium for the flashy new stuff (not that this is an option for 300k anyway).

I notice there is a LOT of these types of properties in the main part of the suburb. There are only a few towers so far, not sure how much is in the pipeline (specifically in the heart of Coorparoo, not the whole suburb).

Is this a disaster waiting to happen or will it be ok for a long term hold?

 

In terms of how many new apartments will be built specifically in Coorparoo there won't be that many. There isn't that much land in Coorparoo that is zoned appropriately for towers or large unit complexes. Below shows the zoning in the suburb with the density concentrated around Old Cleveland Road/Cavendish Road and centre zones here. This is where the current upgrades are happening. ie apartment blocks etc.

Coorparoo Zoning-1 by Coxy89 posted 16th Jul, 2017 at 11:25 AM

The rest of the suburb is mostly zoned LMR or LD for houses/2-3 storey unit complexes. There are a lot of these units in Coorparoo and in the future there will likely be a lot of newer smaller complexes and townhouses taking over the old big blocks which are suitable for redevelopment.

Whilst there isn't a lot of supply specifically in Coorparoo there is a lot of it in a few suburbs over which are closer to the city, closer to bus lines and train infrastructure, overall better suited suburbs for density ie Woolloongabba, South Brisbane, West End. All of these suburbs have significant supply of new apartments which you will be competing against in an older apartment in Coorparoo. Overall I think its a bad idea to be going after the older units close to the city.

Whilst everyone is on about the oversupply of units in the city the newer units will likely not have trouble finding tenants as they're brand new, well located and a lot of developers are adding in more features; pools, gyms, cafes etc which all make the apartments more attractive to renters. Plus the fact that most of these places are now offering months free rent etc to entice people to move. The places that will feel the hurt are the exact apartments you are looking at. Located further out, old and tired with limited features. That is the recipe for disaster.

 

If the budget is strictly $300,000 what about Springwood, you will get a nice townhouse and probably have change. Easy access to the M1 & bus interchange.

 

Yes that was probably the second option I was going to push for.

 

Coorparoo is fringe city. It is being affected, and will continue to be affected, by the oversupply.

The council has big plans for tired old Springwood, I'm a big fan. Don't write off the surrounds as well- Tanah Merah, Daisy Hill, Shailer Park, etc.