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What suburbs are booming in Brisbane for the Olympics?
114 Plays2 months ago
"Olympic Gold: Brisbane's Property Boom"
Is Brisbane's property market about to take home the gold? With the 2032 Olympics on the horizon, we're diving into the data to uncover the suburbs set to soar and those that might fumble. From Hamilton's promising unit market to Coorparoo's spillover potential, we'll guide you through the best investment plays. But it's not all smooth sailing - we'll also reveal the surprising suburbs you might want to avoid. Join us as we decode the Olympic effect on Brisbane real estate and learn how to position yourself for a podium finish in the property game. Don't miss this medal-worthy episode packed with insights for first-time buyers and seasoned investors alike!
Stop guessing about your buying power! Get a FREE personalised home buying assessment with Hunter Galloway. Call 1300 088 065 or visit huntergalloway.com.au
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Transcript
Property Growth Surge in the '90s
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Sydney experienced a 60% growth in property values between the 1993 announcement and the 2000 gains, with median house prices growing 96.2% over the decade.
Global Property Value Trends
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Other cities like Barcelona and London saw increases of 130% and 26% respectively.
Brisbane's Meteoric Rise - Sustainable?
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But with Brisbane overtaking Melbourne and Canberra as Australia's second pricier city, and off the back of house prices rising for the last 15 months straight, and just in the last 12 months alone, prices have gone up 15%, it all begs the question, is this growth in Brisbane sustainable?
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And will the Olympics light a fire in this growth or be a complete
Olympic Influences on Brisbane Real Estate
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flop? We're going to use data and hard numbers to analyze, firstly, how the Olympics will affect property prices in Brisbane. We're going to look at the best suburbs to invest in Brisbane to take advantage of the Olympic growth and the three suburbs you're going to want to avoid. And finally, what you can do about today to put yourself in the best position possible to come out ahead.
Guide to the Australian Housing Market
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Welcome to the Buying Your First Home Podcast, your personal guide through the Australian housing market. Here we tackle the big questions and the small details that come up when buying your first home. From financial prep to finding the right neighbourhood, we're here to ensure that you've got all the knowledge at your fingertips. So let's take the first step towards unlocking the door to your new home.
Infrastructure Investments and Property Prices
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So before we start looking at the suburbs set to benefit the most from the Olympics, we need to talk about the investment coming into Brisbane as a part of the Olympics. The federal government has committed to investing up to $3.4 billion dollars towards key infrastructure. So there's a lot of tangible benefits, but there's also intangible benefits.
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The biggest key impacts we're seeing are accelerated infrastructure development, including the $6.3 billion dollars cross river rail, $1.7 billion dollars Brisbane Metro projects, which could drive up property
Olympics' Economic and Urban Impact
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prices further. And there's other economic benefits with predictions of $8.1 billion dollars in direct economic benefits for the creation of 91,600 jobs over the next 20 years. There's also long-term urban development, such as repurposing the athletes village of the North Shore and Hamilton.
00:01:55
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Specific areas like Wollongabba, South Brisbane, Hurston, Spring Hill are projected to see significant growth off the back of all this infrastructure. Even regional areas like the Gold Coast and Sunshine Coast are expected to benefit from the economic uplift. But when it comes to property investment, not all suburbs are going to evenly benefit from the 2032 Olympic Games. So to help you work this out, we've sifted through the recommendation of top commentators, analysis, some of the rankings of these suburbs and actual investment data.
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The result of all this is we've identified the three top suburbs that are likely to benefit from the games and the three that aren't. We've looked at factors like proximity to Olympic venues, planned infrastructure improvements and market dynamics.
Hamilton: Thriving or Struggling?
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So in this section, let's deep dive into Hamilton, Cooper and Albion, three suburbs that have emerged as seeming to benefit the most from the Olympic city infrastructure.
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So let's talk about Hamilton and why it's catching everyone's eye for the Olympics, specifically the unit market. Hamilton is set to be a big winner from the 2032 Olympics, mainly because of the athletes village planned for North Shore Hamilton. Here's why it matters. The athletes village will bring major upgrades to Hamilton, making it more attractive to invest in. After this games, this area will turn into a whole new neighborhood, new homes, shops and offices, creating a whole new area. All this new development is expected to bring in $500 million dollars in private investment and create 1,600 construction jobs. But let's deep dive into the numbers.
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The vacancy rate is incredibly low at 0.58%. It means there's high demand for rentals in this area. Rental yields are also pretty good in Hamilton at 5.35%, above what we typically look for. There's also not a lot of property to the sale. Only 1.19% of stock on market, which usually pushes prices up. And the demand to supply ratio is strong, sitting at 70 out of 100. Long-term growth in Hamilton has been a bit slower at 2.85% per year. This can be a good thing, since it can indicate there's a lot more room for growth. Long-term growth figures tend to average out, so if growth has been higher for the average of the past few years, it tends to be slower and vice versa. But it's not all smooth sailing. Looking at Hamilton as a suburb, over half the residents are renters, which could mean a less stable population. Rental growth is also on the slower side at 3.44% per year, potentially due to a higher proportion of renters, which means there's more competition.
00:03:49
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The market is slow. Properties take about 56 days to sell, which is a little bit longer than ideal. Brisbane's median days on market is 20. But looking at the trends over time, less and less properties are sitting empty, rental returns are slowly getting better, and there's been ups and downs in property growth. Outside of the Olympic infrastructure, there's also the North Shore Hamilton priority development area. um This 304 hectare precinct on the river at Hamilton is undergoing major urban renewal. It's being converted from a former industrial site into a vibrant mixed-use community. So what does it all mean? Hamilton's looking pretty promising for unit investment, especially with the Olympics coming up. The low vacancy rates and good rental yields are definitely positives for investors looking for regular income. The Olympic developments, especially the athletes' village, will make Hamilton pretty desirable. We saw this in Western City's Newington Village. It was a successful model. After the Olympics, it was reconfigured to offer more than 1,500 dwellings with excellent transportation, amenities, and green space. Prices in that development have risen by 250% since they were built.
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But if you're looking at Hamilton, there are a few things to watch out for. The high number of renters could mean that people don't stick around long-term. And with all the new development coming, there's a risk of too many units flooding the market. That's also probably the reason why the long-term growth in Hamilton has been a bit lower. Still recovering from the unit over supply issues from a few years ago.
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But in a nutshell, Hamilton offers a good potential for unit investment, especially if you're after rental income and hoping for a boost from the Olympics. It's not all without its risks. You'll need to keep an eye on how many units are being built and think about what might happen after the Olympic buzz dies
Cooparoo's Balanced Investment Potential
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down. Number two, Cooparoo. Let's dive into Cooparoo's market and see why it's catching the attention for the 2032 Olympics. Cooparoo is getting a lot of buzz lately, mainly because it's close to Woolloongabba, where there's a lot of infrastructure and the previous Olympic stadium was slated to be built.
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The proximity to the Brisbane Metro, the Cross River Rail means that it's getting some of the spillover effects that some of this Olympic infrastructure is delivering. These major transportation projects like the Cross River Rail and Brisbane Metro will mean that it's easier for residents to get to and from the suburb and into the city. This potentially increases the appeal of units in the area. Let's look at so some of the numbers for Cooper's unit market. The vacancy rate is incredibly low at 0.54%, showing this high demand for rentals. Rental yields are solid at 4.59%, which is good news for investors looking for income. Units are selling pretty quick with an average of just 29 days on market.
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and the demand to supply ratio is healthy at 61 indicating a pretty balanced market. But there are some things to keep in mind. About 46% of residents are renters, which could mean a less stable population. Long term growth in the market has been lower, but it's ramping up. Rental growth is a bit slower than we'd like at 4.35% per year. The amount of stock on the market while not high needs watching to avoid oversupply. So why Cooper instead of Wollongabba? Cooper is gonna benefit from some of the Olympic improvements without the Gabba's price hike. Rising Wollongabba prices may push buyers and renters to Cooparoo, boosting demand. Cooparoo's amenities and lifestyle appeal to long-term residents. Cooparoo may see gradual sustainable growth, offering some better returns. Cooper's unit market looks pretty promising, especially for those focused on rental income.
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The low vacancy rates and quick sales suggest strong demand, which could be boosted by the Olympics developments nearby. The interesting thing with Cooper is it offers a bit of a balanced investment and opportunity. It's not directly impacted by Olympic developments as the other suburbs, which could mean more stability longer term. The strong current demand and potential for future growth makes it worth considering, especially if you're after a steady rental with the possibility of capital growth as the Olympics approach. Just remember to keep an eye on new developments to avoid any potential oversupply issues in
Albion's Strategic Advantage
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the unit market.
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Number three, Albion. Let's have a closer look at Albion's house market and why it's gaining attention for the 2032 Olympics. Albion's a pretty interesting one. It's close to the city centre and has easy access to Olympic venues, even though it's not actually hosting any events itself. It's just four to five k's from Brisbane CBD, which is a plus, and the suburb is going through some pretty big changes, including some urban renewal projects. The Brisbane Indoor Sports Centre has been confirmed to be built at Albion Park Raceway. It'll host basketball and wheelchair events during the Olympics and Paralympics. The facilities are pretty big additions to the area, featuring a 12-court center with a seating capacity for 12,000 people. Let's look at the numbers for Albion. The vacancy rates are super low, 0.45%, showing this high demand for rentals. Houses are selling pretty quickly, averaging 45 days on market. Rental growth is impressive at 10.18% per year, which is pretty good news if you're an investor.
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The demand-supply ratio is a healthy 56, indicating a balanced market. And there's not too much stock on market, and only 0.49% suggesting there's high demand and limited supply. But there are a few things to keep in mind. Rental yields are on the lower side, 3.12%, which may not be ideal if you're an income-focused investor. A whopping 64.2% of residents are renters, which could mean a less stable population.
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There's been a short-term decrease in all unit asking prices, which could be a minor blip or a sign that the market's starting to shift. Other factors that make Albion a good investment, Albion exchange development. This proposed $750 million dollars development connects the East and West of Albion, which is currently separated by a train line. The state government is also accelerating the redevelopment of precincts around Albion Station and Ballarat Road. Known as the Albion Quarter, it aims to transform the industrial focused area into more of a residential hub, connecting people with homes and transportation. The Albion Quarter is expected to address the current disconnect in the bike network,
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This could make it more attractive for people to live in the suburb and improve overall accessibility. While not directly in Albion, the proposed Lamington markets in nearby Lutwych could be within walking distance for some residents in Albion, potentially increasing its appeal. Albion's house market presented an interesting mix of opportunities and challenges. The strong rental demand and quick sales are definitely positives. The higher rent is particularly attractive, suggesting good potential for rental income over time.
00:08:48
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The suburbs location and ongoing urban renewal make it well positioned to benefit from Olympic related growth, even if it's not directly hosting events. There are also some other infrastructure improvements that will help provide opportunities for growth in the future. But the lower rental yields and higher proportion of rentals should be worth considering. You might face more tenant turnover and the initial return might not be as high as in some areas. The moderate long term growth is something to think about. While it's been steady, it's not as high as some investors would hope for. but with the Olympics on the horizon and urban review ongoing, there's potential for this to improve. In summary, Albion could be a good choice for investors who are looking for a strong rental demand and are willing to bet on future growth driven by its strategic location and Olympic-related developments. It might be more suited to people who can afford to focus on the long-term capital growth rather than the immediate high rental returns. Now let's look at some of the bottom three suburbs based on the data.
Tenerife's Rental Challenges
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Let's take a close look at Tenerife's housing market and why it might not be the best for the 2032 Olympics. Tenerife is a high-end suburb just 2.5 kilometers from the Brisbane CBD. It's known for its converted wall stores and trendy lifestyle. While it's not directly hosting Olympic events, it's close enough to benefit from general improvements and economic boost.
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Looking at the numbers, the vacancy rate in Tenerife is really low at 0.62%, showing this high demand for rentals. Hazards are selling quickly, just averaging 42 days on market. And long-term growth is impressive at 17.35% per year, well above what we typically look for. The demand to spire ratio is healthy at 56, indicating a balanced market.
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But this is where it gets tricky. Rental yields are really low. 2.73%, which isn't great for income-focused investors. 52.9% of residents are renters, which could mean a less stable population. And rental growth is actually negative at negative 11.83%, suggesting a minor oversupply. Tenore's housing market presents a bit of a mixed bag.
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The strong long-term growth and quick sales are definite positives and the suburbs location and lifestyle appeal could bode well for future demand. But the negative rental growth and low rental yields are big flags if you're looking to invest. These factors could make it challenging for investors trying to generate steady income. If you're considering Tenerife, you'll need to weigh its prime location and strong capital growth against the challenges in the rental market.
00:10:44
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For investors, it could be a higher risk that requires some solid consideration. Number two, houses in Cooparoo. Let's take a closer look at Cooparoo's housing market and compare it to the units that we discussed earlier. The vacancy rates for houses are pretty low in Cooparoo at 0.57%, so similar to the unit market. Rental growth is really strong, 10.36%, significantly better than the unit market at 4.35%. Houses are selling in about 49 days, which is good, but not as quick as units at 29 days. And this is where it gets a little bit tricky. Rental yields on houses in Cooparoo are low, 2.79%, even lower than the unit market at 4.59%. 46% of residents in houses are renters, which is similar to the unit market. And the demand supply ratio is low, only 43%, below the target of 55 and worse than the unit market at 61. So what does this mean for investors? Cooparoo's house market shows some strong points, particularly in capital growth and rental growth.
00:11:32
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These factors suggest good potential for long-term appreciation and increasing rental income. However, if you're an investor focusing on rental yields, they could be a bit of a concern. This means that despite strong rental growth, the initial returns on the investment as far as the yield might be lower than desired. The high proportion of renters is also a consideration, indicating a less stable population. The lower demand-to-supply ratio for houses compared to units suggests that the housing market might be less competitive, which could impact your future growth potential.
00:11:57
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Compared to the unit market, houses in Cooperoo offer better long-term growth and rental growth, but at the cost of lower yields and less favorable debt-manage supply balance. So in summary, while houses in Cooperoo show promise of capital appreciation and rental growth, it might not be the best choice for investors who are prioritizing immediate rental returns. It could be more suitable for those looking for a long-term investment horizon who could afford the lower initial yields.
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Number three, houses in New
New Farm's Growth vs. Income
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Farm. Let's have a look at the New Farm housing market and why it might not be the best bet for the 2032 Olympics despite its location. New Farm is as blue chip as it gets. It's about two commas from Brisbane as known for its riverside location, beautiful parklands and upscale lifestyle. It's already one of Brisbane's most expensive suburb with the median house value exceeding $2 million. dollars While it's not directly hosting an Olympic event, its proximity to the city centre and existing amenities make it a pretty attractive location. So let's look at the numbers for New Farm's housing market. The vacancy rate is low, 0.63%, showing there's a high demand for rentals. Houses are selling really quickly, averaging just 40 days on market. Long-term growth is strong, 11.48% per year, which is typically above what we look for. And rental growth is modest, but positive at 5.57% per year. And the rental's rate gets tricky.
00:13:04
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Rental yields are extremely low, 2.31%, which isn't great for income-focused investors. A high 54.8% of residents are renters, which could mean a less stable population, and the demand-supply ratio is only 38%, well below the target of 55%, indicating a bit of an unfavorable balance there. So what does it mean for investors? New Farm's housing market presents a bit of a mixed bag with some significant changes. The strong long-term growth and quick sales are definite positives, suggesting good potential for capital appreciation.
00:13:30
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The suburbs prime location and lifestyle also bode well for future demand. However, the extremely low rental yields are a major red flag. These could make it challenging for investors to generate steady incomes, especially given the high property price in the area. So while New Farm has some strong points, it may not be the best choice for Olympic focused investors, especially those looking for steady rental returns and income.
00:13:48
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The suburb might be suited to high net worth individuals who can afford to focus solely on the capital gains and aren't rental reliant. So if you're looking for capital gains, then the list could easily be flipped upside down. Focusing on cash flow, our top picks are Hamilton, Cooper and Albans. Setting up for their strong rental demand, proximity to Olympic venues and potential for growth. These suburbs offer a mix of stability and future potential, making them pretty attractive for Olympic-minded
Smart Suburb Selection for Investors
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investors.
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On the flip side, we've also seen some of those more desirable suburbs and those blue ship inner city suburbs like Tenerife, New Farm and Cooper's housing market could have some challenges. Despite their prime locations, these areas showed low rental yield and in some cases, negative rental growth. It just goes to show the importance of looking at some of these data points and going beyond just the suburbs reputation.
00:14:28
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So what's a key takeaway here? Well, investing isn't just about picking the most obvious suburbs. It's about finding the right balance between current performance and future potential. So how do you make the most of these Olympic opportunities? Here's a few strategies to consider. Firstly, focus on areas that plan infrastructure improvements. The Cross River Rail and Brisbane Metro projects will reshape our city's connectivity. Number two, look for a suburb with a mix of strong rental yield and capital growth potential. The balanced approach can give you both immediate returns and long-term gains.
00:14:56
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Number three, consider the post-Olympic utility of any developments. Will the athletes village make for a desirable area after the games or will it be a shambles? Looking at the Sydney market, it's looking like it's going to be positive. And lastly, look at the next suburb along. So many investors looking at the suburbs that are directly going to be invested in the areas, but think about the one next along and how they're still going to benefit with all the proximity but without the price tag. But it's not upside, you need to still think about potential risks and consequences.
00:15:22
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Firstly, the risk of oversupply in certain areas. With a lot of new development in the Hamilton era, if there's too much, too soon, it could mean there's too much supply, and not enough demand, and thus some of these prices could soften out. Number two, the importance of underlying market fundamentals beyond the Olympic Games. A suburb needs more than just a games-related development in the long term. Number three, the potential and changes in changing the government policy, things around negative gearing, capital gains could change some of these returns.
00:15:45
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The 2013 Olympics present a once in a generation opportunity for the Brisbane property market. While there's exciting potential for returns, it's important to approach any investment with careful consideration and thorough research. The best investors are going to be looking beyond the Olympic hype and trying to find as strong underlying value and long term potential. I think Brisbane is on the cusp of becoming a truly global city and the property market is set to reflect that. With the right strategy and guidance, you could be well positioned to benefit from the Brisbane Olympic Games transition. Let me know what you think in the comments below and until next time, see ya.