QLD What's the Deal with Rochedale?

I'm struggling to wrap my head around what's going on with Rochedale. It almost feels like a mini-Sydney market in Brisbane.

Real Estate & Property For Sale in Rochedale, QLD 4123 (Page 1) - realestate.com.au

Land is selling fast at about a rate of $1300+/sqm, e.g. at Arise: Arise at Rochedale - 1 Phoenix Street

Now my understanding is that there are two main estates:
Arise - first one. No body corporate fees etc.
Rochedale Estate - has a "community centre" people pay $2k+ a year body corp to have the pleasure of using the gym etc.

Here's what I don't get. Why are the prices so high?!

The main reason why it could be is:
- Perceived Convienience. (well I would argue there is no good public transport within walking distance, and you can buy closer to the city for cheaper)
- All new (lots of people want to live in a new estate and will pay a premium to do so)
- Chinese Appeal (objectively, if you scroll through RP Data, 80+% of new buyers are Chinese last names. Not just foreign investors, but young Chinese couples are buying (based on friends stories etc.)
- New Shopping Centre Proposed (currently scheduled for new Cinema + other shops, yet to have Op works commenced, perhaps people think there will be capital growth here later?)
- I guess it's about 100% owner occupier. No one wants to invest with 2% yield and no forseeable capital gains???

The reasons why I think it's ridiculous the price is even north of $1,000/sqm are:
- Not convienient. You can buy at Sunnybank , Upper Mt Gravatt, next door at Eight Mile Plains even for cheaper per sqm rate e.g. 13 Breton Street Sunnybank Qld 4109 - Residential Land for Sale #201842110 - realestate.com.au Lot 3 2469 Logan Road Eight Mile Plains Qld 4113 - Residential Land for Sale #201465382 - realestate.com.au
- New properties and off the plan... everyone has their opinions on this, but I believe the general concensus here is to avoid doing so
- I mean it's just ridiculous. It feels like a bunch of overcapitalised houses selling for $1mil + as house and land packages, when the surrounding "better more convienient suburbs" are struggling to have homes reach north of $1mil.
- There's no existing infrastructure, no trains, no good buses (e.g. 130,140), no closeby schools, no existing shopping centre. It's not in a good school catchment zone either.

Anyway, I get the appeal of Rochedale, I really do. But at the end of the day, it's glorified farmland that people are paying Sydney prices for 18km drive out from Brisbane CBD.

 

Oh there's a dumping ground a few hundred metres up the road too.



IT'S EIGHTEEN (18) KILOMETRES from the CBD for goodness sakes, surrounded by farmland.

Like this 4bed 2bath selling for $933k
25 Phoenix Street, Rochedale, Qld 4123 - Property Details

Or this 5bed 3bath selling for $1.350 Million.
Lot 3026 Kestrel Street, Rochedale, Qld 4123 - Property Details

Sure there is a "Lifestyle Centre" with tennis courts, pool, gym - but at $2k body corp that will rise ++ annually, surely a gym membership + as required pool entries would be cheaper. How often do you think you'd be able to use that tennis court anyway.

 

Yeah, I have noticed the same thing. The list prices don't make sense to me either.

Maybe Rochedale is leading the Brisbane boom?

 

Yet in Rochedale South you can buy land that actually has a house on it for 600per sqm

 

I was just having the same thought

Im pretty sure that the Melbourne boom started in Glen Waverley

On property chat we spend a lot of time talking about location but it seems it would be better spent following chinese agents

 

The new estates in Rochedale are aimed squarely at Asian buyers.

The pricing point $1m+ is deliberate, a bit cheaper and certainly quicker and easier than the current Asian favourite - buy a house in Sunnybank for $700K+, knock it down and spend upwards of $500K on a new build. But with over 95% of buyers in Sunnybank being Asian, there is an ever shrinking pool of properties for sale, particularly in the more desirable areas close to Market Square.

Hence shiny new Rochedale estates....
Marg

 

Agree with all of the above. I think Rochedale foregrounds the importance of owner occupier appeal. Logic goes out the window...

 

But where is the appeal? The location is simply inferior to anything else in the price point. It'll be just "Suburbia", 18km from the CBD.
- not close to good public transport
- not close to existing shopping centres
- not close to any good schools
- surrounded by tightly packed subdivision
- sharing, in case of Rochedale Estates, a fitness centre with everyone else in the suburb

It seems like almost a pyramid scheme, or self fulfillying prophecy, that one day
1. A few (Asian) owner occupiers were willing to pay $1mil + for house and land there
2. Others came along and saw that happening and got into the action
3. Boom, all founded on the first few buyers in step 1. that saw some appeal in this suburbinised farmland.

 

Spot on

 

Yeah it's ridiculous. I remember about 6-7 years ago when stage 1 was launched at Rochdale estates blocks were $300k for 600sqm. I mentioned to a friend to purchase one and he did quite well out of it. You would be suprised there is investment properties in there. Even duplexes, but yields are terrible. No idea why anyone would fork out those ridiculous sums.

Villa world also are now establishing a new estate starting from 700k on 300m2 blocks.

The biggest appeal to the Asians there is Redeemer College which is a very sought after private school.

 

I might be wrong but:

• Rochedale is Brisbane City Council
• Rochedale South is Logan City Council

 

I am expecting that some of the Sunnybank/Rochedale money will flow over the fence into Runcorn, Coopers Plains, Eight Mile Plains, Burbank, ...

I think it might already be happening. Saw a house listed earlier this week in Runcorn for $700,000

WTF

 

Runcorn already going up. Few weeks a go a house on pine street sold for $1.4m. Rough as guts but was on 2000m2. Can't get anything decent in runcorn for under 550-600 anymore. Eight mile plains nothing under 800k.

 

EMP and Runcorn already getting some spillover. But for those who want shiny new, knock down and rebuild in those suburbs still uneconomical.
Marg

 

Quite correct.

Boundary runs down Priestdale Road, so new estates in BCC.
Marg

 

Yeah, I saw that one. Nice block of land though.

I know of someone who recently bought 1,600m2 in Coopers Plains for something like $700K.

At the time, I thought it was a reasonably good deal. Now I am starting to think it was daylight robbery .

 

BCC running buses down Gardner Road already. Area serviced by Mt Gravatt buses
Two shopping centres being developed.
Walk to Redeemer College and Rochedale State School.
Tightly packed? Been to Hong Kong or Shanghai???
High land, city views from ridges.
Mag

 

Before I opened this thread, I was planning my reply. "Rochedale is an awesome suburb, great value etc".

What I was thinking of is Rochedale SOUTH. The new estate part? Yeah I don't get it either. You're paying through the nose to be in the middle of nowhere surrounded by "premium" yawn-inducing new builds. You want shiny and new? Build on a block in Rochedale South, Springwood etc, or reno a spacious highset just the way you want it. Or, you know, pay a quarter to buy a Queenslander in Ipswich.

 

Yes exactly, by applying logic this suburb should not be experiencing this level of growth. But for owner occupiers wanting to live in the area logic goes out the window. Asians buy in Rochedale and slowly friends and relatives move over and they buy in the same or surrounding areas to associate with people they can easily relate to and communicate with.

This happens all the time - even schools, certain schools will slowly but surely attract more of a certain nationality/ origin. Why do you think this is?

I think it's easy to over-analyse things like this but really it should be straight forward - I guess your pyramid scheme analogy holds true in many ways.

 

Will see what happens when the 250 blocks are released in runcorn on warrigal road. Will be a shame to lose those farms. Bad enough driving through there now let alone another 1000 people, and don't get me started on their driving "skills".