As Victoria deals with the fallout from cancelling the 2026 Commonwealth Games, the 2032 Brisbane Olympics precinct in Brisbane’s Inner South has topped a list of the city’s property hotspots.
The Hotspotting Top 5 Brisbane Hotspot Report listed the Olympic precinct, including the suburbs of Highgate Hill, Woolloongabba, Fairfield, Annerley, Greenslopes and East Brisbane, as an area buyers and investors should target over the next six months.
Hotspotting Director Terry Ryder said the Inner South area was well positioned for growth in the lead-up to the Games with new and upgraded infrastructure set to prime the region for significant international attention during the Olympics.
Projects include the $2.7 billion redevelopment of the Gabba ground at Woolloongabba.
“That is set to place a huge national and international focus on the inner-south of Brisbane,” Mr Ryder said.
“Suburbs in this precinct have a higher level of renters – 56 per cent of households in the precinct rent, compared to 35 per cent across Greater Brisbane.
“Rents for both houses and apartments across the precinct have been rising steadily for three years.”
Mr Ryder said suburbs in the Olympic precinct have continued to show growth, with Woolloongabba lifting its median house price four per cent and its median unit price nine per cent in the 12 months to April this year.
Fairfield’s median house price jumped 22 per cent, while the median unit price for Annerley rose 13 per cent, he said.
“Very few houses are available in the region for under $1 million, and the impact of preparations for the Olympic Games is set to increase those prices further,” he said.
Mr Ryder said the Brisbane property market as a whole was somewhat of a contradiction.
It’s currently a national leader on price growth at a time when sales activity is below normal.
“This dichotomy arises because of one of the dominant factors driving real estate in this era of higher interest rates – shortages of everything,” Mr Ryder said.
“There is a serious shortage of listings of properties for sale, an undersupply of new dwellings under construction and a chronic shortage of homes for rental.
“These imbalances in the Brisbane market are pushing up sale prices and rentals.”
CoreLogic’s Home Value Index published in early July indicated that Brisbane house prices rose 1.3 per cent in June, with prices up three per cent in the June quarter.
Hotspotting General Manager Tim Graham said these growth rates are the second best in the nation, after Sydney.
“At current growth rates, Brisbane will soon overtake Melbourne in terms of its median house price,” Mr Graham said.
“Brisbane’s apartment market is also strong – the median unit price rose one per cent in June and three per cent in the June quarter. Again, only Sydney has had better growth.”
Mr Graham said research shows that host cities for the Olympics generally experience significant uplift in their residential property markets, with the greatest impact occurring in the years leading up to the event.
“The key factor is the investment by government and private enterprise in sporting, transport, and hospitality infrastructure – which creates enormous economic activity and employment that translates into demand for homes to buy and to rent,” he said.
“Brisbane is investing more than $2 billion to revamp The ‘Gabba as the main venue for the Olympics, with billions more being poured into other infrastructure already under construction.”
Other ‘highlights’ include $7 billion on the Cross River Rail, $5 billion on the Northshore Precinct and $1.6 billion on Brisbane Metro.
Ipswich City – featuring Greater Springfield and the South West suburbs of Brisbane
- Ipswich City and Greater Springfield are experiencing rapid population growth and extensive infrastructure and commercial developments.
- Significant projects in the area include a $710 million Ipswich Hospital upgrade, RAAF Base Amberley expansions, a $1 billion Citiswich project, and a $1.7 billion fast rail link.
- The population of Ipswich is expected to double within 20 years and overtake the Sunshine Coast, with much of the growth attributed to projects like Springfield and Ripley Valley development.
- Ipswich remains an appealing area for property buyers due to its affordability, with several suburbs having median house prices below $500,000 and master-planned suburbs selling houses typically in the $600,000s.
- Vacancy rates in Ipswich suburbs have been falling, with most postcodes now below or just above one percent, indicating high demand for housing, particularly in areas like Ripley and South Ripley with a vacancy rate of 2.1 percent.
Moreton Bay region, far northern suburbs of Brisbane
- Moreton Bay region, located in the far northern suburbs of Brisbane, is experiencing rapid growth and is set to be upgraded to Moreton Bay City Council by the end of 2023.
- The region offers affordable housing, low vacancies, and good rental yields, making it attractive to buyers and investors.
- Significant infrastructure investments, including the $9.5 billion Caboolture West project, $980 million in new infrastructure, and the $2.7 billion North Harbour Marina, contribute to the region’s appeal.
- The area’s proximity to major job nodes, easy access to Brisbane and the Sunshine Coast, as well as lifestyle precincts and amenities, make it a desirable location for commuters.
- Many suburbs within the Moreton Bay region have shown strong median house price growth, with Upper Caboolture being the standout performer with a 45 per cent increase in median house price in the past 12 months. The rental vacancy rate remains extremely tight, with many postcodes having vacancy rates below one per cent.
Southern Moreton Bay Islands, South-East Queensland
- Southern Moreton Bay Islands, located in South-East Queensland, offer a relaxed coastal lifestyle, remarkable scenery, and varied wildlife, attracting residents seeking an affordable island community atmosphere.
- The islands’ proximity to major job nodes, including Brisbane CBD, Brisbane Airport, and Port of Brisbane, within a one hour ferry ride, adds to their appeal.
- Over the past decade, Russell and Macleay islands have experienced long-term capital growth, with annual average uplifts of 12 per cent and 10 per cent, per year, respectively.
- The Southern Moreton Bay Islands market boasts strong rental yields, ranging from five to six per cent, with median weekly rents in the $380 to $390 range.
- Despite the increased demand and notable uplift in prices, houses in these islands still remain highly affordable compared to mainland Brisbane, making them an attractive option for homeowners and investors.
Inala precinct, Suburban Brisbane
- Inala precinct, located in suburban Brisbane, offers affordability and low vacancy rates in its real estate market.
- The area benefits from strong transport links and is within 20km of Brisbane’s CBD, making it attractive for residents.
- Inala’s appeal is further enhanced by its proximity to major projects like Ripley Valley, Springfield, an AFL football stadium worth $70 million, and a $400 million motorway upgrade.
- The precinct also boasts substantial investments, such as the $6 billion Springfield Health City and a $5.2 billion Defence Force manufacturing contract, contributing to its growth potential.
- Inala’s consistent demand from buyers, particularly young families, is driven by its housing affordability, access to education, health facilities, and shopping amenities, with a notable increase in birth rates and steady property price rises in recent years.