West End’s unit market should be one of the strongest performing within Brisbane over the next 12 months, according to research by PRDnationwide.
In its Brisbane Hotspots predictions for 2006 report, the emphasis has swung away from “the ripple” suburbs which performed well during 2005.
Instead, suburbs within 10km of the CBD take out nine of the top 10 hot suburb picks. The other is Upper Kedron, 11km from the CBD.
PRDnationwide research manager Tim Lawless said price growth over the coming year was likely to be limited to areas with a point of difference and qualities difficult to replicate in other areas.
“Houses that are located within close proximity to the CBD and infrastructure should fare well, as should properties situated near the water or with views,” the report said.
PRD’s top 10 picks for 2006 include West End units, located 2km from the city and with a median price of $249,500.
Indooroopilly, where units have a median price of $258,300 for the suburb located 6km from the city, is included, its outlook boosted by a planned revamp to the Station Rd precinct.
At Fairfield, 4km from the city, where the median price is $375,000, the green bridge and close proximity to parks and the CBD is expected to buoy price growth.
In Albion’s house market, also 4km from the city, where the median price is $410,000, the possibility of one of the city’s first transit-oriented developments is expected to drive interest.
Taringa’s unit market, which has a median price of $262,000 and is located 5km from the city, is set to benefit from an upgrade to retail areas along Moggill Rd, as well as ongoing rental demand from university students.
At New Farm, units which have a median price of $327,500 and located 1.5km from the city, are expected to continue their consistent trend upwards.
In Balmoral, houses which have a median price of $457,000, located 4km from the city, are undervalued, according to the PRD research.
Further out at Salisbury, where houses have a median price of $305,000, located 9km from the city, large blocks with easy access to transport routes are expected to drive interest.
Upper Mt Gravatt, where houses have a median price of $302,000, located 10km from the city, is expected to perform well, as is Upper Kedron, where houses have a median price of $414,000, located 11km from the city.
Mr Lawless said the trend of affordability and higher yields driving price growth in Brisbane’s outer ring suburbs was reversing.
“Price growth is returning to the inner and middle ring suburbs due to high demand from buyers seeking lower commuting times, better access to the CBD and surrounding retail precincts, as well as access to transport options for easy commutes,” Mr Lawless said.
He predicted that, as the market remained fairly flat, double-digit growth would be the exception rather than the rule.
