A Brisbane-based buyer’s agent has identified the top six suburbs where buyers are creating hundreds of thousands of dollars in equity by building their own home.
Melinda Jennison, managing director of Streamline Property Buyers, said more buyers are choosing to forgo listings and see to the construction of their new home instead.
“When you actually run the numbers, the tactic makes sense, but location is crucial, otherwise you’ll be left out of pocket. It really is a case of destruction plus construction equals profit,” Mrs Jennison said.
The Brisbane managing director said it’s important for buyers to be wary of the process before moving ahead.
“You firstly need to find near-city locations where it’s easy to demolish an existing home and create a clean slate. But the surburb must also have wide price disparity between new and existing homes, gentrification, strong family-buyer demand and desirable attributes such as views,” she said.
“It’s the magic formula that makes the figures work.”
Melinda Jennison’s top six suburb picks for dream-home construction
1. Wavell Heights
“Wavell Heights has huge price disparity where the difference from the entry price to the exit price is significant because the end product is so highly desired by the local buyer demographic,” Mrs Jennison said.
“Wavell Heights is also the first suburb north of the CBD with limited numbers of character protected homes, which means most older dwellings can be knocked down.
“It’s also an elevated suburb and some streets allow for city views. We are seeing rapid gentrification here with old homes transformed into brand-new large family homes. This continues to bolster value at the upper price point.”
“Seven Hills is located five kilometres from the CBD and is the first suburb on the south east not dominated by demolition-protected character residential. The entry price for an old house in this area is around $750,000.
“This pocket is family-friendly and is a small suburb that is only 1.8 square kilometre, so supply is limited, which helps keep end values high.
“It’s elevated, hilly topography provides opportunities for city views. Price disparity is also significant, making it easier to create instant equity from a new build,” Mrs Jennison said.
“There is plenty of new-build gentrification happening here, and it’s close to the new metro infrastructure that is coming to Brisbane, which is driving up price disparity.
“Multiple positions also have city views, and it’s highly desirable for families looking to knock down the older dwellings and build their dream home.
“Good access to desirable schools is also helping bring in families, and with a buy-in price for the older homes of $650,000, there’s excellent upside for new builds.”
“In Alderley, you’ll find an array of different-sized blocks, solid retail facilities and great public transport options,” Mrs Jennison said.
“Most properties aren’t demolition-protected, so having access to a large pocket of real estate just seven kilometres from the CBD to build your family home is a no-brainer.”
“Corinda’s elevated streets – some with city views – are the start of its new-build appeal. Corinda has very little character-home protection so you can create an excellent homesite for building a dream home.
“Demand for Corinda feeds off the highly desirable suburbs of Chelmer, Graceville and Sherwood, which are areas with predominantly character protected homes.
“By selecting the right position within Corinda, you can take advantage of the huge price disparity between existing and new homes.
“600 square metre blocks are achieving prices of around $650,000, but the median value of homes in this suburb is $850,000.”
6. Gordon Park
“The big sell for Gordon Park is its proximity to infrastructure and services. The busway, for example, has made commuting a breeze.
“The parkland lifestyle also attracts family buyers, which is bolstering the value of newly built homes relative to older stock.
“Finally, Gordon Park enjoys easy access to retail and lifestyle hubs such as the Lutwyche shopping district and Kedron Brook Road.”
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