Live Brisbane, Property research | 2 min read

Property expert nominates East Brisbane as prime investment pick

Michael Zaghini
Michael Zaghini
31/01/20

East Brisbane has been nominated as the prime pick for long-term residential investment in Brisbane for 2020. And with key fundamentals already in place for capital growth in Brisbane, this city-fringe suburb is experiencing strong demand, limited supply, and subsequent price and rental yield increases.

East Brisbane residential property

Louis Christopher, Founder and Director of SQM Research, has nominated East Brisbane as his prime pick for long-term residential property investment in Brisbane.

In the recently released SQM Housing Boom and Bust Report 2020, Christopher states that “the stats suggest that East Brisbane is on the move, with asking prices now up by 8% for the three months to November 2019.”

Given East Brisbane’s locational advantages, strong employment growth prospects, and population forecasts, combined with a constrained new dwelling supply, this emerging trend is hardly surprising.

At only 2km from the CBD, East Brisbane enjoys easy access to public transport, entertainment and restaurant precincts, and world-class education and healthcare, all of which play a key role in its sustained, universal popularity.

Proximity to employment hubs has also ensured strong population growth, and when coupled with the constrained supply of new dwellings, it is hardly surprising that East Brisbane is experiencing strong investment value uplift.

At a macro level, Christopher expects the turnaround in mining investment combined with the once-in-a-generation level of infrastructure spending will lead to an uptick in the Brisbane residential property market.

The Boom and Bust Report observes that Brisbane vacancy rates have been falling since 2017 and that subsequently, rents are on the rise. For the 12 months to October 2019, rents for houses rose by 2.7% to sit at $465 a week, while apartment rents rose by 2.4% to stand at $380 a week.

With no signs of a pickup in dwelling completions and population growth rates remaining strong, an acceleration in Brisbane rental growth is expected in 2020.

SQM Rental Growth Forecasts – 2020

East Brisbane residential property

Cuts to interest rates and significantly higher rental yields than those being achieved in Sydney and Melbourne, are already providing Brisbane property investors with positive returns. These conditions have been labelled by Prime Properties Director Sasha Holland as “the best investment conditions in over 10 years”, and with further rental increases likely, this signifies “a good year ahead for existing property owners” according to Christopher.

Apartment Yields – Dec 2019

East Brisbane residential property

Brisbane Yield Gap (Rental Yield – Standard Mortgage Rate)

Now is the time to seriously consider investing in residential property in Brisbane, and with such robust fundamentals continuing to underpin its popularity and performance, East Brisbane is the suburb to do it.

The Sinclair by Mosaic offers an exceptional opportunity to invest in this blue-chip location. On the doorstep of an abundance of public and lifestyle amenity, education, employment, it boasts close proximity to Brisbane’s most significant infrastructure projects – including Cross River Rail and the Woolloongabba Masterplan Precinct.

Source: SQM Research, Christopher’s Housing Boom and Bust Report 2020