Brisbane’s million-dollar club to double as house prices jump

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Trent Jordan and Belinda Jeffrey with Cara Jordan, 11, at the house they are selling in Dutton Park, which is tipped to become a million dollar suburb in three years. Photo: Steve Pohlner.

BRISBANE’S million dollar club could more than double in the next three years if predictions for a massive jump in house prices come to fruition.

As many as 35 “Cinderella” suburbs could have median house prices of more than $1 million by 2022, based on BIS Oxford Economics’ forecast that Brisbane could outstrip other capital cities and surge by 20 per cent over the next three years.

Forecast Median House Price Growth 2019 – 2022, Australian Capital Cities. Source: BIS Oxford Economics.

Homeowners in Red Hill, Anstead and Windsor are looking at capital growth of at least $160,000, according to projections using the latest figures from property researcher, CoreLogic.

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Vendors in Rochedale and Ashgrove, where the median house price is $998,000 and $980,000 respectively, could pocket nearly $200,000 without lifting a finger.

This tiny cottage at 18 Woolcock St, Red Hill, sold at auction recently for $864,000.

There are currently 23 suburbs in Brisbane with a median house price of $1 million or more, according to CoreLogic, but that would increase to 58.

BIS Oxford Economics made the bold prediction in its Residential Property Prospects 2019 to 2022 report, which was released in July.

This five-bedroom house at 67 Farrell St, Ashgrove, is for sale.

BIS Oxford Economics associate director and report author Angie Zigomanis said he still expected Brisbane house prices to grow by 20 per cent over the next three years — the strongest growth of any capital city.

“From a fundamental perspective, Brisbane has a lot going for it,” Mr Zigomanis said.

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“Its population is picking up, construction is falling away so any excess supply is going to get soaked up and the economy will start to pick up.”

Mr Zigomanis said the biggest impact would likely be felt closer to 2022 because it “takes a while for the market to gather steam”.

This four-bedroom house at 203 Sugars Rd, Anstead, is going to auction.

Mr Zigomanis said it was good news for owner occupiers.

“If you’re a family looking for a house to live in for a long time, I think it’s a good time to get in to the market,” he said.

But from an investor perspective, Mr Zigomanis said it would continue to be challenging.

“Even though APRA’s made life easier for borrowers, banks are still putting onerous conditions on investors, so they’ll be out of the market for a while longer,” he said.

Angie Zigomanis from BIS Oxford Economics.

Other property experts are predicting even higher price growth for Brisbane over the coming years.

Select Residential Property Research Group research director Jeremy Sheppard said median house prices in the top Brisbane suburbs could grow by a whopping 25 per cent by 2022.

Mr Sheppard said SRP’s research was based on data from real­estate.com.au, CoreLogic and the Bureau of Statistics.

Under his predictions, Red Hill and Keperra come out on top for forecast growth, with median house prices potentially set to increase by about $215,000 and $130,000 respectively.

This three-bedroom house at 10 Fitzsimmons St, Keperra, is for sale.

Mr Sheppard also expects Mount Gravatt, Rochedale South, Arana Hills, Morningside, Chermside West and Tingalpa to record strong house price growth by 2022.

Place Estate Agents chief executive Damian Hackett said he expected growth to be seen in suburbs that were already in high demand, but also those suburbs that were on the cusp of those areas.

He said those suburbs known as “Cinderella suburbs” were more affordable, yet still offered a similar lifestyle to the high demand suburbs.

“Based on our research, we expect to see a median house price spike past the million-dollar mark in suburbs like Hendra, Camp Hill, Indooroopilly and Norman Park,” Mr Hackett said.

This three-bedroom house at 17 Henderson St, Camp Hill, is going to auction.

“These are areas that already have multimillion-dollar homes and the older homes are either being knocked down and rebuilt or beautifully renovated.”

Ray White Queensland CEO Tony Warland expects the southeast corner of the state to continue to attract interstate migration due to its relative affordability and lifestyle.

The boss of the largest network in the state expects suburbs like Bardon and Ashgrove to continue to appreciate in value and crack the million dollar median club soon.

“Both of these premium suburbs have had positive growth for the last five years,” Mr Warland said.

Ray White Queensland chief executive Tony Warland.

LJ Hooker Queensland sales leader Roger Carr predicts Dutton Park will experience strong house price growth.

“In the Brisbane State High School catchment, Dutton Park’s popularity was underpinned over the last 12 months with CoreLogic recording a 14.1 per cent growth in the median house price to $964,250,” Mr Carr said.

“Interest continues to rise in the area and low interest rates are encouraging buyers to add value to their properties through renovations.”

This heritage-listed house at 218 Gladstone Rd, Dutton Park, is for sale.

Brisbane couple Trent Jordan and Belinda Jeffrey are selling 32 Park Road West, Dutton Park, with a view to buying in the same suburb.

Dutton Park has a median house price of $964,250, according to CoreLogic, but that would jump to $1.16 million by 2022 if BIS Oxford Economics’ predictions are correct.

Mr Jordan said he loved living in the suburb because of its convenience to the city, access to transport and lifestyle amenities, and the fact his house was in the Brisbane State High School catchment.

Marketing agent Deb Maguire of Place Estate Agents – Kangaroo Point said Dutton Park was benefitting from the overflow from surrounding suburbs like Highgate Hill.

”People are trying to get houses in Highgate Hill, West End and South Brisbane, but cannot get a foot in there for under $1.5 million as a general rule,” Ms Maguire said.

She said Dutton Park was becoming more popular with young, executive couples looking to upgrade from an apartment to a house close to the city.

“You’re finding quite a lot of homes there are being gentrified and you do capitalise on the fact that you’ve got good sized blocks,” Ms Maguire said.

“Generally, the houses are older style houses. There’s a mix of workers’ cottages and Queenslanders.”

Ms Maguire said the house at 32 Park Road West would grow in value because of its location in the Brisbane State High School catchment.

McGrath Queensland state manager Justin Marsden expects Gumdale, Wakerley and Manly to outperform in the next few years.

“Gumdale continues to increase its average sales price off the back of Chandler’s high demand,” Mr Marsden said.

“Although Gumdale is not solely acreage properties like Chandler, with a current average sales price of $920,000, and only 20 minutes from Brisbane CBD, it will be the next Brisbane suburb to be included in the $1 million club.”

This five-bedroom house at 88 Archer St, Gumdale, is for sale.

Mr Marsden said Manly also continued to grow and was becoming highly sough-after from inner-city Brisbane and interstate buyers looking for “the quieter life”.

He predicts the suburb will enter the million dollar club by 2021 or 2022.

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BRISBANE’S NEXT MILLION DOLLAR SUBURBS

Suburb – Median house price – Predicted median price by 2022

Rochedale – $998,000 – 1,197,600

Ashgrove – $980,000 – $1,176,000

Kangaroo Point – $967,000 – $1,160,400

Dutton Park – $964,250 – $1,157,100

Bardon – $946,250 – $1,135,500

Highgate Hill – $940,000 – $1,128,000

Gumdale – $938,000 – $1,125,600

Camp Hill – $925,000 – $1,110,000

Grange – $920,000 – $1,104,000

Graceville – $907,500 – $1,089,000

Norman Park – $902,500 – $1,083,000

Fig Tree Pocket – $901,750 – $1,082,100

Kenmore Hills – $899,500 – $1,079,400

Spring Hill – $897,500 – $1,077,000

Sherwood – $895,000 – $1,074,000

Taringa – $891,500 – $1,069,800

Toowong – $890,500 – $1,068,600

Indooroopilly – $888,000 – $1,065,600

Mount Ommaney – $880,363 – $1,056,435

Lutwyche – $870,000 – $1,044,000

Yeronga – $867,500 – $1,041,000

Alderley – $860,000 – $1,032,000

East Brisbane – $860,000 – $1,032,000

Yeerongpilly – $860,000 – $1,032,000

Carindale – $856,570 – $1,027,884

Gordon Park – $856,000 – $1,027,200

Wooloowin – $852,500 – $1,023,000

Coorparoo – $850,000 – $1,020,000

Newmarket – $850,000 – $1,020,000

Red Hill – $848,500 – $1,018,200

Petrie Terrace – $847,000 – $1,016,400

Anstead – $844,000 – $1,012,800

Windsor – $840,000 – $1,008,000

(Source: CoreLogic)

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