A suburb in Brisbane’s north is set to take off thanks to rising prices in surrounding suburbs and comparative affordability, with one buyer’s agent saying investors could potentially double their deposit within 12 months of purchasing there.
Speaking to Smart Property Investment, Andrew Allen, buyer’s agent and principal at Allen Real Estate, said Geebung in Queensland remained a somewhat undiscovered investment suburb compared to other Brisbane alternatives.
“Brisbane has been experiencing strong buyer demand since 2013. The city turned from a buyers’ market to a sellers’ market quite quickly and that remains the case today,” Mr Allen said.
“The hottest Brisbane suburbs are the ‘activity centres’ in the council’s town plan. Chermside is one of the mini-CBDs where the council is encouraging high-density development. These ‘activity centre’ suburbs have already experienced significant and above average growth.”
Mr Allen said investors would be better off ‘sidestepping’ the current growth areas and looking one suburb away – “the classic ripple effect idea in action”.
“Geebung is separated from Chermside and Wavell Heights by Downfall Creek and its residential part is flanked on the north east by the railway line. It should benefit from the significantly higher prices of Chermside and Wavell heights, but an investor can still buy houses on larger blocks of land at acceptable yields.”
RP Data statistics from September indicate the median house price in Geebung is $464,500 with a median weekly rent of $395 and an average gross rental yield of 4.4 per cent. Comparatively, Chermside’s median house price is $519,500, according to RP Data, with a median weekly rent of $388 and an average gross rental yield of 3.9 per cent.
For more expert tips on where you could double your deposit in 12 months, look out for the December issue of Smart Property Investment, hitting newsstands on Thursday 30 October, or subscribe here.