Live Brisbane, Live SEQ, Property research | 5 min read

Top reasons for investing in Indooroopilly

Mosaic Property
Mosaic Property
26/09/19

Considered one of Brisbane’s most prestigious suburbs, and underpinned by high levels of amenity, connectivity, strong employment, population growth and housing values, Indooroopilly presents a compelling investment opportunity.

1. Infrastructure & Amenity

Located in the Inner West only six kilometres from Brisbane’s CBD, Indooroopilly is one of South East Queensland’s designated Key Principal Activity Centres. Brisbane‘s high-frequency public transport system, and the close vicinity of the Western Freeway, Legacy Way Tunnel and Inner-City Bypass, means Indooroopilly is well connected to all entertainment, education and employment services across the CBD and Greater Brisbane. Combined with a $16 billion infrastructure spend that will transform Brisbane, local retail, recreational amenity, and proximity to world-class secondary schools and tertiary institutions, accentuate the convenience and accessibility that drives Indooroopilly’s lifestyle appeal.

2. Employment Growth

It is a well-established residential investment principle that “people follow jobs” and in this regard Indooroopilly is very well positioned to capitalise. Both local employment opportunities within Indooroopilly itself, and the suburb’s proximity and high connectivity to external employment hubs contribute to this lower unemployment rate. Interestingly, the number of local jobs within Indooroopilly actually exceeds the labour force residing there. This trend looks set to continue, with job creation forecasts surpassing projected population numbers.

3. Population Growth

While the population of Brisbane’s wider Western Suburbs is anticipated to grow by 2.5% between 2018 and 2026, Indooroopilly’s is expected to grow by 7.8%. This reflects the suburb’s ever-increasing residential appeal and provides a strong indicator of the growing demand for real estate in the coming years. Based on these projections, Indooroopilly will require in excess of 1,300 new dwellings prior to 2036.

4. Demographic Profile

Indooroopilly attracts a broad cross-section of demographics and market segments, including young professionals, students, young/established families and downsizers. The greatest age representation among Indooroopilly’s population (aged 20-24 years) has started to marginally decrease, with increases observed in the 30-40 and 60-70-year-old brackets. This highlights Indooroopilly’s increasing appeal to young professionals and downsizers who typically desire low maintenance living, with a greater financial capacity to rent or purchase higher quality dwellings.

5. Residential Property Market

Indooroopilly is a high demand, blue-chip location, recording a median house price $350,000 above that of Greater Brisbane for the March quarter of 2019. The previous six months saw a sharp uplift in median apartment prices, likely driven by Indooroopilly’s sustained residential appeal and a lack of supply coming into the local market. In 2006, apartments accounted for approximately 35% of all dwellings in Indooroopilly. By the 2016 Census, this figure had risen to 40%, reflecting a positive shift in preferences towards lower maintenance, lifestyle-led living.

6. Rental Market Performance

Reflecting Indooroopilly’s increasing credentials as a strong residential investment location, Indooroopilly maintains a healthy vacancy rate of 3.4%. The same cannot be said for inner-city locations that have been oversupplied in recent times with small, investment-grade product with very limited appeal to the end-user. Indooroopilly’s increased desirability also means tenants are prepared to pay more to secure accommodation, as evidenced by the significant growth in median 2- and 3-bedroom apartment rents over the past year. Subsequently, Indooroopilly demonstrates higher rental yields than oversupplied inner-city suburbs.

7. Future Dwelling Supply

An extremely small proportion of potential future supply is being delivered to Indooroopilly’s Inner West. With strong underlying demand fundamentals coupled with a dwindling supply pipeline, Indooroopilly will continue to outperform other Brisbane residential apartment markets, particularly those that continue to be oversupplied in the Inner South.

 

Interested to learn more about investing in Brisbane and South East Queensland? Read more key investment statistics here: mosaicproperty.com.au/brisbane/, scroll further down the page to read more property insights, or contact us to receive our full Indooroopilly suburb profile.

* Please view our disclaimer for more information on Mosaic Research.