Brisbane’s Five Top Performers
Feb 19, 2018
Brisbane’s Five Top Performers
Virginia has been named No.1 in RiskWise Property Review’s list of Brisbane’s five top suburbs.
Situated only 10km north of the Brisbane CBD, Virginia enjoys low risk and is projected to carry strong growth over the medium to long-term.
It is joined by Manly West, Ferny Hills, Northgate and Cashmere as Brisbane’s Top 5.
Research house RiskWise uses an innovative new algorithm to determine the suburbs with the best value.
The algorithm, which allows buyers a glimpse into the long-term risk-or-reward of a property, enables RiskWise to instantly provide a comprehensive analysis report that measures current and historical data and dozens of variables against a broad range of risk factors, ultimately scoring the property or suburb’s risk potential from minimal to high.
RiskWise Property Review CEO Doron Peleg said the strengthening of the Queensland economy was likely to bring ongoing capital growth to investors in these areas.
“A strong economy is the No.1 factor behind property market growth and our analysis suggests that houses in suburbs close to the city that meet certain criteria, such as Virginia, are likely to deliver healthy growth and rental returns,” Mr Peleg said.
Primarily a residential suburb featuring a large number of timber and tin Queenslander-style housing, Virginia enjoys a low vacancy rate of 3.7 per cent and median days on the market of just 19.
In addition, with 57 new houses planned in the area over the next 24 months, constituting 6.4 per cent of current stock, the risk of oversupply is moderate. However, as a result of the growing demand for houses across the suburb, it is predicted that this additional supply will be easily absorbed into the market.
Mr Peleg said Virginia offered strong commuter accessibility to Brisbane’s business hub via public transport.
“With expensive housing limiting the ability to buy and rent in the inner-city suburbs, demand for houses in Virginia has increased and is predicted to continue this trend. Brisbane’s growing population will be a key driver behind such demand,” he said.
“This area of Brisbane is predicted to deliver strong growth over the medium to long-term.
“Population growth over the next 10 years will likely by a key driver. Similar patterns of growth have already eventuated in the western suburbs in Melbourne, bringing excellent returns to investors.
”Manly West and Northgate also show low vacancy rates (4.0% and 3.8% respectively) and days on the market (26 and 33 respectively) with strong growth patterns predicted.
Mr Peleg said the low vacancy rate of Manly West was partly explained by the increased demand for affordable housing, particularly among manufacturing, retail and healthcare workers.
“And with only 59 new houses planned in the area over the next 24 months, constituting 1.5 per cent of current stock, the risk of oversupply is low,” he said.
“Its affordability is illustrated by price per square metre which is $933. In the surrounding suburbs of Manly and Wynnum, the price per square metre is $1601 and $1134 respectively.
“In Northgate, it’s a similar story with only 57 new houses planned in the area over the next 24 months, constituting <1% of current stock, making the risk of oversupply low.
“As a result of the high demand for houses across the suburb, it is likely that even if the number of new houses increases, the additional stock will be easily absorbed into this high-demand, low vacancy suburb.”
With great transport solutions to the city, Ferny Hills’ median number of days on the market sits at just 17 days and its vacancy rate at 3.6 per cent. With only 51 new houses planned in the area over the next 24 months, constituting 1.3 per cent of current stock, the risk of oversupply is also low.
“With the relative affordability of houses in Ferny Hills compared to its surrounding suburbs, it is likely that the suburb will attract increasing demand from investors and homeowners across the medium to long-term,” Mr Peleg said.
In addition, Cashmere, with its large average land size, large parks and recreational areas, is proving popular among retirees and likely to enjoy moderate capital growth in the medium to long term.
With 277 new houses planned in the area over the next 24 months, constituting 18 per cent of current stock, the risk of oversupply is medium.
Mr Peleg said Cashmere’s low vacancy rate of 3.5 per cent was also an indication of the stable demand for houses in the suburb, and properties suitable for families were likely to experience higher demand.