Revealed: The Brisbane suburbs that defied the housing downturn
BRISBANE has emerged the capital city least affected by the housing downturn, according to new evidence revealing the suburbs that recorded double-digit growth over the past year.
It has been a tough year for the nation’s residential property market, but new research from realestate.com.au shows the Queensland capital weathered the storm better than most capital cities.
Brisbane took out three of the top 10 national spots for suburbs that defied the downturn and recorded double-digit growth in the 12 months to September — the only city to do so apart from Adelaide, which also had three suburbs in the top 10.
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House prices in Chelmer, Northgate and Ipswich jumped at a time when most suburbs around the nation were going backwards.
Chelmer and Northgate even beat the affluent suburb of Vaucluse in Sydney.
From waterfront enclaves to first homebuyer hot spots, Greater Brisbane’s lifestyle, affordability, amentiy and access to jobs proved just how resilient the city’s housing market is.
The leafy riverside suburb of Chelmer, in Brisbane’s west, recorded the strongest house price growth of 31 per cent year-on-year in the 12 months to the end of August, according to realestate.com.au.
The phenomenal growth saw Chelmer’s median house price increase to $1.29 million.
Chelmer residents David and Yvonne Todd are selling their stunning, five-bedroom Georgian-style house at 17 Lama Street after living there for 11 years.
Mr Todd said he was not surprised by the growth in the suburb because it had so much to offer.
“There’s certainly been a lot of investment in the area from people improving their properties, so we’re certainly very cognicant of the suburb’s performance,” Mr Todd said.
The couple was initially attracted to Chelmer because of its proximity to good schools, the fact it was on the train line and the community feel of the suburb.
“What is interesting in the area is there seems to be a huge amount of people who live all their lives here, but might move within the area,” Mr Todd said.
Now that their three children have grown up and left home, the Todds are looking to downsize and plan to spend more time in Europe.
“My wife is a photographer and our youngest son is in Europe … so what we need is more of a lock up and go, rather than a family home,” Mr Todd said.
Ann-Karyn Fraser of Place Estate Agents, who is marketing the home, said she had noticed the increase in house prices in Chelmer and the continued strong interest in the suburb and the surrounding suburbs of Graceville and Sherwood.
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“I put it down to the liveability of the suburb,” Ms Fraser said.
“The community Chelmer embraces is so rare and that’s why so many people flock there — the beautiful homes, the infrastructure we have, the schooling, the railway line, and the easy access to the CBD.”
Northgate experienced house price growth of 25 per cent in the year to September, despite general weakness in the overall housing market.
Unlike Chelmer, it has a more affordable median house price of $733,500, but bargains are becoming harder to find.
Rebecca and Marko Vuksanovic have just sold their house at 51 Junior Terrace in Northgate for $1.05 million, making a healthy profit on what they bought it for six years ago.
“We were quite pleasantly surprised,” Mrs Vuksanovic said.
“It was a bit of a record for this little pocket and sold after the first open home.”
The couple are relocating overseas, but could not be happier to have invested in the suburb.
“It was perfect for us,” Mrs Vuksanovic said.
“My husband and I both work locally, it’s got awesome proximity to the city, the airport and freeways north and south.
“We just think it’s the perfect suburb.”
Selling agent Dwight Colbert of Ray White – Aspley Group said he had noticed “continuously strong” growth in Northgate in the six years he had been selling homes there.
Mr Colbert said he had sold more than 20 homes in the suburb in the past 12 months and part of its appeal to buyers was its proximity to the airport, Northgate train station and the CBD.
“I think everyone thinks Northgate is the older suburb, with older homes, but … people udnerestimate the value of the homes in Northgate,” Mr Colbert said.
“It is now becoming one of those attraction locations people want to be in.”
The Ipswich region also featured prominently on the list of suburbs to record double digit house price growth in the year to September.
The median house price in Ipswich rose 20 per cent to hit $385,000, while North Ipswich experienced 12 per cent growth and Ripley recorded an 11 per cent increase in its median house price to $415,000.
On the Gold Coast, premium suburbs with homes with $1 million-plus price tags recorded the highest growth.
Suburbs such as Kingscliff, Paradise Point, Clear Island Waters, and Surfers Paradise weathered the downturn — recording double digit price growth.
Now that buyers are back and auction clearance rates are improving, some experts are calling the bottom of the market.
SQM Research managing director Louis Christopher said he believed Brisbane home prices were “close to fair value” after an extended period where there was a wind-down of housing prices relative to incomes.
“The worst overvaluation recorded was early 2008 whereby the market was 45 per cent overvalued,” Mr Christopher said.
“This occurred as a result of the Brisbane housing boom of 2003 to 2008 — a period where housing prices doubled in just five years.”
Mr Christopher expects the Brisbane market to respond to recent interest rate cuts and relative loose credit for the remainder of the year.
“We are forecasting a 0.6 per cent rise in housing prices for the current September quarter and a further 1.5 per cent for the December quarter,” he said.