Home hunters hoping to replicate the property gains of the past decade are being urged to focus on fundamentals rather than chasing yesterday’s hotspots.
Amid signs the extraordinary real estate price boom may be over, experts have now turned their attention to where buyers should be investing for the decade ahead.
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While the locations vary, the experts are united on one point: buyers looking to build wealth over the next decade should focus on suburbs with strong fundamentals, constrained supply and owner-occupier appeal — rather than simply chasing the strongest performers of the past.
Andrew Winter, property guru, TV host, and Compare The Market’s property expert, warned buyers not to get bogged down in statistics.
“What I look for is geography, housing mix, entry-level prices, and the ceiling values for that market,” Mr Winter said.
Real estate guru Andrew Winter is Compare The Market’s new property expert. Image: Luke Marsden.
| 5 QLD SUBURB PICKS FOR INVESTING IN PROPERTY OVER NEXT DECADE |
| Andrew Winter, TV host and Compare The Market property expert: |
| Mountain Creek, Sunshine Coast |
| Karana Downs, Brisbane |
| Mermaid Beach, Gold Coast |
| Lota, Brisbane |
| Parkwood, Gold Coast |
“I also consider whether there is an ongoing limited supply, and what life would be like for new owners over the next five to 10 years. Is it a place people will want to live, beyond just a low price?”
Among his top picks is the Sunshine Coast suburb of Mountain Creek, which he said remained overlooked despite its proximity to some of the region’s most desirable beachside suburbs.
“Townhouses range from the $800,000s to $900,000s, while freestanding family homes start from around $1m,” he said.
This house in Powells Rd, Karana Downs, recently sold for $1.2m.
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His other top pick for investing in the next decade is the outer western Brisbane suburb of Karana Downs, which he describes as a “wildcard choice for families wanting space, affordable acreage, and large backyards”.
“Despite its quiet setting, it’s only 10 minutes west of prime Brisbane acreage suburbs where sales in the $3m to $4m range are common,” he said.
“Established family homes start from the $900,000s, with renovation opportunities available.”
Mr Winter also sees value for buyers in Mermaid Beach and Parkwood on the Gold Coast.
Oliver Hume chief economist Matt Bell.
| 5 QLD SUBURB PICKS FOR INVESTING IN PROPERTY OVER NEXT DECADE |
| Matt Bell, Oliver Hume chief economist: |
| Leichhardt, Ipswich |
| Caboolture South |
| Eagleby |
| Mount Gravatt East |
| Deception Bay |
Oliver Hume chief economist Matt Bell said potential homebuyers should be looking for strong historical capital growth, a good rental yield, a low vacancy rate, affordability, and available stock.
“Although Brisbane/South East Queensland may be somewhat less attractive than it was a few years ago due to the very strong recent price growth, rental yields and fundamentals remain strong,” Mr Bell said.
His top suburb pick in Greater Brisbane is Leichhardt, which achieved house price growth of more than 200 per cent in the past 10 years, according to PropTrack analysis.
This three-bedroom house at 80 Aspinall St, Leichhardt, recently sold for $765,000.
With an affordable median house price and only 11 available listings, the suburb is 34km from the Brisbane CBD.
“Combined with rents that have grown by 6.7 per cent per year over the last 12 months, a rental yield of 3.9 per cent, and a rental vacancy rate of 1.3 per cent, and it’s easy to see why the capital growth outlook is strong,” Mr Bell said.
“If you’re willing to go further out, Caboolture has 31 listings available. With a median price of $832,000 it remains affordable despite its 10.8 per cent annual growth over the last decade.”
Mr Bell also likes Eagleby, Mount Gravatt East, and Deception Bay for long-term growth.
Herron Todd White CEO Peter Maloney said property markets were influenced by a range of economic and demographic factors, but areas with strong infrastructure pipelines, employment opportunities and limited supply were generally well placed to experience sustained demand.
Herron Todd White CEO Peter Maloney.
“Over the next decade, we expect some of the strongest-performing areas in South East Queensland to be those benefiting from population growth, major infrastructure investment, employment creation and the legacy of the Brisbane 2032 Olympic and Paralympic Games,” Mr Maloney said.
“While no market is guaranteed to outperform, these factors have historically supported long-term demand and capital growth.”
He is looking to Brisbane suburbs that are likely to be the biggest beneficiaries of Olympic-related investment, including Woolloongabba, Herston, and Spring Hill.
Outside of Brisbane, Mr Maloney sees investment potential in Ripley, Maroochydore, and Tugun.
“Ripley remains one of South East Queensland’s major growth corridors and continues to benefit from strong population growth and significant infrastructure investment,” he said.
“As the region matures and services expand, demand for housing is likely to remain well supported.”
McGrath Estate Agents founder John McGrath.
| 5 QLD SUBURB PICKS FOR INVESTING IN PROPERTY OVER NEXT DECADE |
| John McGrath, McGrath CEO: |
| Coorparoo, Brisbane |
| Redcliffe, Brisbane |
| Clear Island Waters, Gold Coast |
| Peregian Beach, Sunshine Coast |
| Mackay, North Queensland |
McGrath chief executive John McGrath said Queensland continued to offer a mix of lifestyle appeal, population growth and relative affordability that would support future price growth.
His top picks for the next decade are Coorparoo and Redcliffe in Brisbane, Clear Island Waters on the Gold Coast, Peregian Beach on the Sunshine Coast and Mackay in North Queensland.
Hotspotting director Terry Ryder urged buyers to look outside the capital city.
Hotspotting founder and property analyst Terry Ryder.
| 5 QLD SUBURB PICKS FOR INVESTING IN PROPERTY OVER NEXT DECADE |
| Terry Ryder, Hotspotting director: |
| Toowoomba |
| Beenleigh, Logan |
| Bowen Hills, Brisbane |
| Bundaberg |
| Beerwah, Sunshine Coast |
Mr Ryder sees value in the regional city of Toowoomba because of its “thriving economy”, which is set to be turbocharged by a new billion-dollar hospital project which should inject fresh demand for housing.
Another regional city with a new hospital project underway is Bundaberg.
“This thriving Central Queensland city is attracting demand for its affordability and lifestyle,” Mr Ryder said. “The billion-dollar hospital project is a game changer which will add further buyer demand”.
He also identified Beenleigh, Bowen Hills, and Beerwah on the Sunshine Coast as suburbs where there is potential for future capital growth.
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