Queensland's top searched suburbs for property developers
The top searched Queensland location in August by property developers through development site portal Development Ready is Chermside, followed by Surfers Paradise and Broadbeach.
Overall the top searched suburbs were:
1. Chermside
2. Surfers Paradise
3. Broadbeach
4. Southpoint
5. Windsor
Nick Materia, Development Ready Managing Director said the data indicated the real action lies with units that are in proximity to the city’s central business district, as key demographic data across the top five searched suburbs told similar stories about attributes of high unit dwelling approvals and median price growth.
“Dwelling approvals for units far outweighed dwelling units for houses in Chermside,” he said.
“There were five house approvals in the 12 months to June 2017, as opposed to 202 unit-based dwelling approvals.”
According to the findings by District Data, Chermside’s average resident is aged around 35 years, with 60% of residents’ household tenure classified as renting.
Daniel Slomoi, District Data Managing Director said with an average of two people per household, what we are seeing in the most searched suburb in Queensland is a trend towards developments catering for young professionals and downsizers who are choosing to rent units that are close to the Brisbane CBD.
"This is likely a sign of affordability constraints," he said.
“It is also interesting to note that three of the top five most searched for suburbs are on the Gold Coast as opposed to Brisbane, hinting at a possible resurgence of apartment developments in that market following a somewhat subdued period."
“With median sales price for units at $420,000 and median annual rent for units at $19,240, it shows there’s a great opportunity for developers and investors to find success responding to the needs of buyers who are looking for affordable dwellings that suit their needs and are close to the city’s offerings, like employment opportunities,” Mr Materia said.
Surfers Paradise revealed new dwelling approvals for units reached 618, while yields for units achieved a high 5.2% in the suburb, reflecting the strong local rental market. Renters made up 56% of the total households within Surfers Paradise.
“The data reveals outlying suburbs within reasonable travelling distance to employment and amenity is highly sought after by on-the-move metropolitan professionals looking for a smaller, more affordable – but reasonably sized – dwelling that will help meet their urban needs,” Mr Materia said.
'Broadbeach, Southport and Windsor completed the list all with a similar trend towards a strong investment market for units.
"District Data also said indicative rental yields for units, while varying in difference, were typically higher than houses.
"Rental yields in Chermside, for example, were at 4.6% for units while sitting at 3.6% for houses."
Owners and mortgage payers contributed little to the suburbs’ household tenures, with renters in Broadbeach, Southport and Windsor making 56%, 56% and 53% of the residential households respectively.
In total, all five suburbs totalled 1302 unit-related new dwelling approvals, while approving only 59 houses in the 12 months to June 2017.
