Hopeful homebuyers on a budget and would-be investors in the market for an asset with a solid yield have a few bright prospects in sunny Brisbane.
And they’re not in far-flung, secondary locations that usually come with bargain basement prices.
Property expert Nicola McDougall, co-author of the new book The Female Investor, has analysed PropTrack data to identify the five best suburbs across the Queensland capital to buy a unit.
They’re parts of the city that are of a premium quality or in the midst of transformation, and where the gap between median house prices and median unit prices is significant.
“Four of the five suburbs in our top-five list have median unit prices below $460,000, yet a house in the same location would cost at least twice that price or more – which is just not an option for most first-time property buyers or owners,” Ms McDougall said.
The pockets Ms McDougall identified are Coorparoo and Morningside in Brisbane’s inner-southeast, Annerley to the south of the CBD, Nundah in the inner-north, and Newmarket in the inner-northwest.
Each is within 10km of the city and has decent transport links and good café and restaurant precincts.
“Plus, each suburb has a supply of established older units, and sometimes townhouses, which tend to have larger footprints as well as being located in more desirable parts of the area,” she said.
A look at the data
| Suburb | Median unit price | Median house price | Price difference | Median weekly unit rent |
| Coorparoo | $450,000 | $1,200,000 | $750,000 | $385 |
| Nundah | $425,000 | $910,000 | $485,000 | $400 |
| Morningside | $539,000 | $935,000 | $396,000 | $450 |
| Annerley | $442,000 | $938,000 | $496,000 | $365 |
| Newmarket | $458,000 | $1,100,000 | $642,000 | $400 |
Cameron Kusher, executive director of economic research at PropTrack, said demand for houses had far outstripped that for units over the past few years, forcing prices upwards.
“Between February 2020 and January 2022, house prices across Brisbane have increased by 42% while unit prices have risen by a much more moderate 12.5%,” Mr Kusher said.
A growing number of buyers simply can’t afford the ballooning price tags for houses in suburbs where they want to live, he said.
“We believe that will lead to buyers increasingly considering a unit, whether that be for owner-occupation or investment.”
The five suburbs identified by Ms McDougall are blue chip locations with well-established infrastructure and good levels of amenity, Mr Kusher said.
“They also tend to have older unit product that tends to have larger internal areas and fewer units within the block, which can be quite attractive for buyers because they have more renovation potential and often lower strata fees.
“In my mind these are the types of units and the types of locations that will be increasingly sought-after over the coming year, especially given how high house prices are in these markets.”
Buyer’s agent and property investment adviser Kate Hill, who co-wrote The Female Investor with Ms McDougall, said unit buyers should be careful to avoid any risks of oversupply.
An established unit in a suburb with strong owner-occupier appeal can make an excellent first home or investment property, Ms Hill said.
“However, it’s vital for anyone considering purchasing a unit to select locations that are unlikely to be flooded with new supply of high-rise ‘investor stock’,” she said.
“These five locations are all older suburbs with established houses and units as well as very little developable land left.
“Not only that, they’re always in strong demand from buyers because of the myriad attributes they offer, which improves the chances of superior capital growth over the medium to long-term.”
Floor size, renovation potential, a quiet location with off-street parking, and a balcony or courtyard were good features to look for, she said.
In addition, complexes with few common property features like pools or elevators, keeping body corporate fees low, are worth prioritising.
“To strategically purchase a unit as your home or an investment, buyers must also understand the demographics of the type of people who live in the area to underpin its long-term demand from renters as well as from future buyers when it comes time to sell.”
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