QLD New developments in nearby area - effect on prices

Hi all

I am exploring Bald Hills and Bracken Ridge at the moment - probably leaning more towards Bald Hills. I am trying to work out an idea of the effect that the new land releases and higher density dwellings in the nearby areas of Strathpine, Lawnton etc may have on property price growth/demand in my suburbs of interest.

MBRC predicts the population of Strathpine to grow to 12,399 & dwellings to 5061 by 2036. Working on the Strathpine average of 2.7 persons per household (ABS 2016), looks like there could be an oversupply of approx. 500 dwellings on the way. Of course the number of persons per dwelling could reduce in future, particularly in the higher density dwellings that are going in.

Most of the new land releases are small blocks, so I'm aiming for an older house in Bald Hills, 600m2+ , not on main roads or train lines etc but still within a short distance to amenities, ideally 4 bed 2 bath but seems to be more 3 bed 1 baths around. Plan is long-term hold, budget $500k absolute max including stamp duty, aiming for ideal yield 4.5%+ and capital gains of 3% - 4% per year.

I would appreciate any opinions or advice on this.

Thank you in advance.

 

This is opinion only

I would say that if you know a developer is coming in, soon your place will compete with theirs if it is the same re: land size. I think a 1000m block or something larger is distinctly different and a buyer can think they are getting large land PLUS amenity of the development nearby (schools etc). So that would be useful.

But if they are building 400m blocks and you have 600 it doesn't seem distinctly different.

The ppl who make capital gain are those that have land before the development is spruiked, and can see the gain in line with the new development.

Small places around Yarrabilba (comensurate development) is not a good buy, and most families are more drawn to the Yarrabilba suburb that those satellite areas around it.

BUT if you were to have something distinct from the development (location land size etc) you might benefit.

Yarrabilba to me looks like slum city, even if it is new. Will the northern development be similar? I think the developers make the money ....

 

How do you compare Yarrabilba with Bald Hills? BH has 100 year old Qlders and Yarrabilba is in the middle of nowhere.

 

Thanks for your reply. I am not sure that the Strathpine development area is comparable to Yarrabilba as it's infill development rather than an MPC. I also think that the area I am looking is very different location-wise.

I agree with what you said regarding having a point of difference. I do need to work drilling down on the exact type of property I am looking for.

Cheers

 

So i think the question was what would happen when a new development is adjacent to existing older houses. Yarrabilba was the example of the new development (not the older houses). The similarities are land releases nearby older areas, and the impact that arises. The other similarity is that a council (a regional south east council) just near Brisbane that has an ambitious plan for population increase and that might impact existing.

Yarrabilba is not something that i would defend or argue as being 'good', but i think developers are making money from these things, and existing properties that have similar land sizes are not helped at all.

It is only opinion as i heard recently someone from Tamborine Village express a positive view of Yarrabilba because they brought a McDonalds with them when they came!!