Residential Buyers – Strong Competition for Quality Homes
The inner north Brisbane property market remains buoyant, with buyer activity staying strong, particularly for well-located homes in premium pockets of each suburb. Recent auction results highlight this trend:
- 34 Armentieres Street, Kedron: This 3-bedroom, 3-bathroom home on a 402m² block, ready for future enclosing in under, attracted 15 registered bidders, selling under the hammer for $1.5M. Interestingly, an underbidder reached out to me via Instagram after the auction, mentioning their $1.4M budget wasn’t enough to secure the property. This is a common sentiment as buyers find themselves priced out in competitive auctions.
- 4 Victory Street, Virginia: This more modest 3-bedroom home on 569m² sold for $1.14M at auction. Despite strong buyer agent representation, an unrepresented buyer ultimately secured the property by paying slightly above competing offers. Post-sale, I has a quick chat to the seller who expressed a level of uncertainty. He mentioned that an “offers over” campaign might have fetched a higher price. This is a reminder that sellers often overestimate value, reflecting current market sentiment.
- 58 Groom Street, Gordon Park: A beautifully renovated 5-bedroom Queenslander on 810m² achieved the suburb’s second-highest sale ever at $3.25M.
- 154 Yabba Street, Ascot: At the premium end, this 5-bedroom, exclusive cul-de-sac architecturally renovated Queenslander home on 692m² sold for $5.8M under the hammer, with several bidders competing for this high-end property.
These results confirm elevated competition for quality homes, and with the recent interest rate cut, buyer confidence is likely to strengthen further. Still, not every auction results in a sale. We’ve witnessed cases where multiple registered bidders walk away empty-handed as sellers’ price expectations outpace the market.
CoreLogic data shows Brisbane’s median values are still rising, albeit at a slowing pace, particularly for houses. In contrast, demand for units and townhouses under $700,000 remains robust, driven by first-home buyer stamp duty concessions and affordability pressures.
Residential Investors – Promising Signs, but Competition Persists
For property investors considering Brisbane’s inner north, the outlook is promising. Low listing volumes mean investors will often compete with emotional home buyers for quality assets.
- Rental Market Snapshot (SQM Research):
- House rents in northern Brisbane rose 2.8% over the past 12 months.
- Unit rents surged 5.8%, reflecting increased demand for more affordable rental options.
- Vacancy rates sit at 0.6% in the inner north, significantly below Brisbane’s city-wide average of 1.2%, highlighting limited rental supply.
If you’re a tenant, you’ve likely felt the squeeze with fewer rental options. For investors, these tight conditions and strong rental growth are clear signals of opportunity. Over 40% of current finance commitments across Queensland are for investment properties, reflecting confidence in future capital growth and rental returns.
Looking ahead, infrastructure projects tied to the 2032 Olympics are expected to support employment and local economic strength, further attracting investor interest in Brisbane.
But how do you select the right suburb? Consider this: A property growing at 5% annually over 30 years versus one at 7% can create a $1M+ difference in equity. Understanding local supply (future housing developments) and demand drivers (such as employment hubs and lifestyle amenities) is crucial. We recommend focusing on areas with high owner-occupier populations and strong household incomes—these suburbs often hold value better during downturns.
Selecting a high-performing investment isn’t just about picking the right suburb; it requires understanding multiple market layers. Professional advice can help you navigate these complexities and secure an asset that aligns with your financial goals.
