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Is Chermside Area Enjoying a Housing Price Growth Explosion?

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In March of this year, Demographer Bernard Salt picked out a ring of over 110 suburbs located 6 to 20 km from the Brisbane CBD, as being “the next big thing” in real estate over the coming decade (according to “Brisbane’s Middle Ring Suburbs the Next Big Thing in Real Estate Courier Mail article).

While it is much too soon to judge a decade’s growth, where are Chermside, Zillmere and Boondall placed at now in regards to capital growth?

And does 12,000 people moving into the middle circle of Brisbane each year mean that house price growth will continually shoot up?

Let’s look at the growth from July 2014 to July 2015 in Chermside (4032). Your Investment Property Magazine report that annual house growth was 5.86%; with unit growth being 4.76%. Nice modest growth.

But property investors in units fared poorly, with just 0.88% capital gain on average. A healthy rental yield of 5.2% for unit owners in part made up for this poor result.

investing in units, Chermside West

New premium units at Chermside West, priced at $505,000


Over at the RealEstate.com.au website, Chermside property data shows that median house values have dropped since 30 June, when there were 102 sales with a median of $566K. With only 88 sales and $532K median by end of July, this seems to indicate that demand has tapered off to around November 2014 levels. Whether this is a temporary pause in an overall growth trend or an end of this part of the cycle, only time will tell.

A clue can be found in the 25% compounded increase in Chermside house investments over the past three years (yourinvestmentpropertymag.com.au); it was good fortune for housing investors to capture that demand.

Big Local Community Guide believe it is premature to predict a “growth explosion” for these middle-ring suburbs — with many variations ahead in this uncertain property cycle.

August 25, 2015 |

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