which are the best outer northern Brisbane suburbs to buy

Which are the Best Outer Northern Brisbane Suburbs to Buy in this Market?

Despite the economy slowing, the home values in Queensland rose in the first half of this year, with the median Moreton Bay house now at $749,000. While this is good news for homeowners, with their home assets increasing 7 to 12% over the year, any rises hit hard to first home buyers. It also makes it harder to get approved for a new loan. 

In the usually laid-back and affordable Queensland, we are now into the million-dollar territory in Brisbane ($1.16m), Gold Coast ($1.1m), Sunshine Coast ($1.02m), etc. Despite this, there are still many homes in outer northern areas for under $700,000. These too have gained significantly in the past two years.

Caboolture homes rose 12 percent and 6 percent respectively in a year, with a median house price $650,000 and a median unit price of $360,000. Units produce a rental yield of 5.5%.

Burpengary homes rose 10% over the year to a median of $740,725 for houses and $428,500 for units. Burpengary units have a rental yield of 5.3%.

Morayfield homes rose 7% over the year and sits at $655,000 for houses and $450,000 for units, up a whopping 13%. Morayfield units produce a rental yield of 5%. 

Brisbane is up 3.7% for the quarter to June 2024.

Local Buoyant Market

So, whilst this growth has created challenges for new home buyers or renters, this movement indicates that our local property economy has been buoyant. This was recently displayed by Current Real Estate agent Mary-Jane Matthews, who received multiple offers on two modern family homes within the range of low to high $700,000s, selling within a week or so and delighting the vendors. 

Brisbane sights

Housing Crisis and Supply Shortage 

More than 120,000 people moved to Queensland in the year to September 2023, including 87,954 from overseas and 32,625 from interstate (net).  The low supply of homes has contributed to overall housing demand and so smart buyers are considering houses not normally on their radar. Even Brisbane buyers are considering rent-vesting (buying and leasing outside of where they live) as they consider the risks of being priced out of the property market.

The REIQ says that first-home buyer loans only make up 1 in 5 of all home loans, but nevertheless we have seen there is incredible interest in the lower end of the market. 

As an example of this entry level is a 1 bed, 1 bath townhouse in David Street, Burpengary that our Current agent sold for $395,000. Most people who bought in the 2010 era would be shocked by this fact. 

With train stations, plenty of shops and access to the M1 highway, both Morayfield and Burpengary areas are highly sought by young families. (Morayfield has an average of 2.9 people per household and a household income of approx. $1900 per week. Source: ABS).  

Government Initiatives for Home Buyers

To address the need for more affordable houses, the Queensland Government budget brought in the initiative Homes for Queenslanders, aiming for one million homes built by 2046. Part of this was a $350 million fund to incentivise infill development to support building new housing in the right locations. Demonstrating just how in need this is, this huge fund was oversubscribed by developers within two weeks of starting. That means they had a huge demand.

Queensland also has one of the best new home buyer grants and concessions offered in the country, including a recently increased $700,000 threshold for the stamp duty concession for first home buyers (phasing out up to $800K). There is also a home concession on stamp duty for those not a first time buyer.