QLD What's going on in Brisbane?

Discussion in 'Where to Buy' started by WattleIdo, 18th Mar, 2017.

Join Australia's most dynamic and respected property investment community
  1. magyar

    magyar Well-Known Member

    Joined:
    16th Mar, 2017
    Posts:
    218
    Location:
    Brisbane

    @Whitecat I think a number of reasons. Even over the weekend there was 5 new listings in the area and 3 of them from agents in Brisbane. I think people are slowly realising the value for money and future growth in these particular areas. Also being close to Sunnybank and 8 Mile Plains and Rochedale helps with the Asian demographics. Not to mention plenty of properties offering 5%+ yields in the area without having to fork out ridiculous amounts of money. I also believe people are realising that if they are willing to travel an extra 10kms and still be less than 30kms from cbd they can save 200-300k easily if not more depending on your land requirements. I personally would not own anything on under 1000m2 and those places even 5 kms closer to the city are either non existent or are usually double the price if not more. There are plenty of nice places on big blocks under $600k which can provide a good rental yield as well as capital growth. I think those areas closer to the cbd are already at the end of their growth cycles. When your paying $800k plus for average homes in greenslopes, mt gravatt , moorooka ect I can't see much growth left in that.
     
    WattleIdo and Whitecat like this.
  2. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    Disagree with Property close to the CBD at the end if their growth cycle...quite the opposite I would say - these will appreciate more (ex oversupplied) because:
    1. Most of bne jobs are in and around thr CBD. They do not lave large employment areas in suburbs like paranatta, Ryde, Macquarie Park etc
    2. Projections are for more people yo move closer to their jobs -which is inner city, thus thr big amount of apartments being built.
    3. Look at infrastructure spend such as thr metro they are planning - where is it servicing? Only in and around the CBD.
    4more single households (nationwide trend)..I don't think they would pay high prices for 1000SQM.

    Brisbane is going to be driven by location in the future. Yes, there is quite a bit of land available now, but that does not mean it will appreciate relative to other smaller land. Those days were 10 years prior ..there has been a shift since and will continue to be that way. These are large forces eg investment decisions demographic changes etc that will not change.
    <hype, but true>
    Buy now to avoid disappointment. Such properties in the near future will rival gains made by Sydney during the peak of its boom.in thr next 10 years, Brisbane desirable land and property will be seen as a credible alternative to overpriced southern capitals as the value offering is unsurpassed ; which will not be lost on the vast majority of househunters.
    <\hype, but true >
     
    Sackie, WattleIdo, Realist35 and 2 others like this.
  3. rookie101

    rookie101 Well-Known Member

    Joined:
    12th Feb, 2016
    Posts:
    350
    Location:
    Brisbane
    The hospital is open
     
    WattleIdo likes this.
  4. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,358
    Location:
    Sydney
    Yes south of Samford Rd is nice. Theres nothing wrong with it. Whole of Mitchelton is a safe bet.
    But south of Samford is just cut off a bit from the hub. A minor point but important for those looking at pricing in that suburb. I would pay the extra and get by that little shopping/train area if I could. I think its got potential as the next Nundah even.
     
    ndpjai and Angel like this.
  5. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,358
    Location:
    Sydney
    Flood-free highsets on a decent block near train.
    They go fast. Better inspect within a few days of listing.

    Properties in flood planning area or outside of walking distance sit around a bit more. But still go. Its doing well.

    So theres a bit of a focus as good stuff just sells quick. @sash got in at a good time.
     
    WattleIdo likes this.
  6. magyar

    magyar Well-Known Member

    Joined:
    16th Mar, 2017
    Posts:
    218
    Location:
    Brisbane

    One thing people seem to forget that those prices are driven by the fact that majority of the employment is located in the cbd. However what will happen once that is no longer the case? As I mentioned previously people will not always be working in the cbd and their mortgages will most likely be longer then their length of employment. There is already a rise in people working remotely, working from home, working interstate ect. Not to mention the exodus of both private and public sector jobs moving out into the suburbs as they look to increase profits and decrease overheads such as their leases, and also ofshoreing jobs and automation. Lots of new business districts are being built in the suburbs. I agree in this economic climate being closer to cbd = higher prices, but in 10-15 years time that could change.
     
    WattleIdo and Angel like this.
  7. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    It could change.. But there are projections from the state govt itself (published on this forum) that approx half of jobs growth the thr entire seq region will be in and around CBD.
    I'll take that as thr state govt thinks it won't change.
    Amd barring Hanson or greens coming into power (I'll leave if they do:)), iy does not look like this strategy will change much even if thr libs win the next state election.
     
    WattleIdo and Whitecat like this.
  8. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,604
    Location:
    Sydney
    Pure luck mate.... ;)
     
    Whitecat likes this.
  9. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,358
    Location:
    Sydney
    It will never change.
    Didn't change in London, cuidad mexico, shanghai etc
     
    Sackie likes this.
  10. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    Didn't happen in San Pedro sula either.
     
  11. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,236
    Location:
    VIC
    Think you missed their point

    Their argument is that technology will change the location requirement of a well paying job.
    London shanghai etc may have bigger populations but they are still using the same technology
     
    WattleIdo likes this.
  12. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,358
    Location:
    Sydney
    I didn't miss it. I understood it. And i predict that the Centre of a city is always going to hold a unique importance that brings it a premium.
    Tokyo is pretty technological and the centre of Tokyo is primespace
     
    Sackie likes this.
  13. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    2,854
    Location:
    Darwin
    The centre of a city brings together all the best minds.

    They literally bang heads together.

    Keeping it all the talent in one concentrates space allows for sharing of information, deals and networking.

    We're social creatures and get a lot done over lunch, coffee, on the train....etc. its not just about "work" per se. There's more to it because there's more to us.

    Technology will never replace that.
     
    Sackie, WattleIdo, Pumpkin and 2 others like this.
  14. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,358
    Location:
    Sydney
    Yes and there's also visitors to consider as well. They want to go and visit the downtown of a city in most cases (as well as get put and about to bays and islands too)
     
  15. magyar

    magyar Well-Known Member

    Joined:
    16th Mar, 2017
    Posts:
    218
    Location:
    Brisbane
    Interesting point of view. That's the beauty of these forums, exposes you to how others think. I can see what you are saying and part of me agrees and the other doesn't. Maybe because I didn't purchase close to the cbd I'm making myself feel better :)

    I can't compare Tokyo to Brisbane. Total different kettle of fish. And even Tokyo has something like 20+ cities within Tokyo itself. Nearly 40million people and not the mention the amount of fortune 500 businesses that operate from there. Australia is largely unpopulated and we still have plenty of space to be building out instead of up. Different culture and life style needs also. I can't imagine too many people here wanting to live in a city like Tokyo with such high density living and living in micro apartments ect, but I could be wrong. Australians are used to having multiple cars, boats, caravans, motor bikes ect. Socially and culturally we are very different. Asian cultures are usually about work, food and family. We have a very relaxed life style here which many don't even realise as they have not been exposed to how things operate on the other end of the scale. I have spent time in Europe and the States and one of the things that make Australia so great is precisely our life style and the amount of free time we have outside of work.

    I don't believe any of the major capitals in Australia will ever be a mega city like the ones mentioned above, certainly not in my life time anyway, as I think people will value their life styles more than living close to the city for a job they may or may not have in a few years.

    I guess only time will tell.
     
  16. ndpjai

    ndpjai Well-Known Member

    Joined:
    15th May, 2016
    Posts:
    343
    Location:
    Sydney
    Its very simple.

    Whoever has a lot of money will buy a property closer to something unique either CBD, principal activity center for employment like Health domain, 2nd CBD, regional center, Sea View etc. in a specific or random order. So IMO CBD will be the No.1 for majority of the buyers.

    That's why the market say buy closer to city as "Universal Rule". Dont try to beat the market just follow.
     
    Sackie, WattleIdo and Whitecat like this.
  17. WattleIdo

    WattleIdo midas touch

    Joined:
    18th Jun, 2015
    Posts:
    3,429
    Location:
    Riverina NSW
    I'm thinking cities are like stars in that they have different stages of growth in patricular areas. I remember when inner-city Sydney was not a 'desirable' area and the burbs were the best place to be. In the long run, both the outskirts and the inner suburbs are consistently growth areas for an investor.
     
    bob shovel and strongy1986 like this.
  18. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,736
    Location:
    Sydney
    I think the capital growth potential for inner is typically higher, but outer is easier to hold with generally better yields. But yes, cycles come into play. Sometimes inner is more in demand, and sometimes outer booms.
     
  19. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,236
    Location:
    VIC
    I agree and Brisbane is a much younger 'star' than a Melbourne or Sydney.
    The whole buy close to the CBD rule was not the best return in the market for you if you were investing in Melbourne in the 80s. Heaps of areas which are now sought after were undesirable - Richmond, Collingwood, Brunswick, Port Melbourne, North Melbourne, Footscray etc

    I think what has made these areas desirable is a population boom which makes it harder for people to get around the city so many people want to be closer to the CBD for work. When there was less population pressures and it was easier to get around (less traffic) people were prepared to pay more to live in mid range suburbs with a big yard or a lifestyle area such as bayside.

    So i guess what i'm questioning is does the buy close to the CBD rule apply for Brisbane yet? Or will it only apply in another 15-20 years? Investors on this site find a spot like Wooloongabba which is close to Brisbane, it's cheap (was a few years ago anyway) and they jump all over it. That's because they have seen what happened in inner suburbs in Melbourne and Sydney. What do people who live in Brisbane think about a place like Wooloongabba? Would you want to live there because its closer to the CBD or are you happy to pay the same amount for a place in Mount Gravatt?

    Or maybe due to technology and access to information it doesn't really matter what the locals think about an area. If its close to a CBD then Sydney and Melbourne investors will snap it up and it becomes a self fulfilling prophecy
     
    WattleIdo and Sonamic like this.
  20. BB5

    BB5 Well-Known Member

    Joined:
    2nd Jan, 2016
    Posts:
    1,030
    Location:
    Brisbane
    The reason why close to the CBD is always going to be popular is not just closeness to commute. If you want to go to Broncos on a friday night you probably want a few beers and not a 40 minute drive home. Take the kids to Southbank? Go for a meal? All the best options are around the city or close surrounding suburbs. Especially if you want variety. It's a lifestyle rather than the Business district itself but hey isn't it great when you aren't stuck in a car a couple of hours a day too?
     
    WattleIdo likes this.