Hot tips for the Queensland property market

“There was a small time [in the middle to outer rings of Greater Brisbane] between around about 2012 at the bottom of their market to around about 2015 where they did see a bit of a rally, and it was a small amount of growth, somewhere between 10 and 20 per cent, depending on what you owned and where you owned it, but probably since around about 2015–16 to where we are now, we’re seeing that sort of wave through,” he said.

Where to avoid

For Mr Glossop, the Logan corridor through to the upper Gold Coast is one area to avoid due to supply.

“When you talk more generally, supply’s pretty easy to say, just as a state, ‘You can figure it out’ on a bit more of a macro level, but when you really drill down into that market, there was some really good interstate migration numbers, but you’ve got Pimpama up Coomera, those regions where you literally just had farms turned over, and they still are.

“You go out there and it’s a wash of developments, big new shopping centres etc. which people get excited about, but unfortunately don’t create anything other than supply.

“They’re just fulfilling any of that demand. So that market in that lower edge of Brisbane and the upper edge of the Gold Coast, I’m not that much of a fan of, probably more so for the next five to 10 years, personally just because I can see it can keep going.”

Looking at parts of the infill towards the Ipswich area, like larger double blocks that are closer to main infrastructure, shows lower supply and solid job data, but the Springfields Lake region towards Ripley shows unfavourable conditions for investors for at least the next 10 years.

Where to go

Investors should be directing their attention to the north of Brisbane, as Mr Glossop said this region features tighter supply.

“There’s still areas there which are going to be some turnover of some larger blocks of land that are going to be cut up into smaller portions, but that Morton Bay region from Kippering, the peninsula down towards the Petrie University campus, further down towards probably Boondall, Nudgee, over towards Sandgate, they’re regions there which are already fully developed,” he said.

“They’re now going into zoning changes backfill, and I think the next five to 10 years there is looking good. Vacancy rates are still 2–2.5 per cent and you’re seeing 5-ish per cent yield in a market where we’re probably seeing money get a little bit cheaper in the next six months; I don’t mind it.”

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