With students returning to lectures at the University of Queensland this month, rental markets in Brisbane’s inner west have been a hive of activity, according to Frank Ham, Co-Principal, Raine & Horne Brisbane West.
“The university underpins the rental markets in Toowong, Auchenflower, Indooroopilly, St Lucia, and Taringa and also the sales market,” says Frank. “We have plenty of parents who choose to buy apartments for their university-aged children. They secure the properties as accommodation for the 3-4 years of university, and then some may keep them as investment properties depending on the state of the market.
“If the market is strong, owners will sell the properties at the end of university. However, if housing conditions are challenging, owners will hold the properties as investments until the market returns to form.”
The supply of new apartments will also impact selling decisions, notes Frank. “There are fewer cranes in inner Brisbane than 18 months ago. Therefore, we’re at the point in the apartment cycle where we’re close to the bottom, which augurs well for some moderate growth in the short-term.”
Longer-term more interstate buyers will support capital growth in Brisbane’s western suburbs. Frank says, “We’re back to 1,000 people a week migrating from interstate to Queensland with a large portion of these moving to Brisbane. These new arrivals need somewhere to live, and the inner west offers plenty of attractions.”
Brisbane’s inner west is a highly sought-after real estate market for many reasons. Frank explains, “There are some outstanding private schools such as Brisbane Boys’ College and St Peter’s Lutheran College, a coeducational college, along with well renowned state schools such as Ironside Primary and Indooroopilly State High as well as several popular golf courses and of course the Brisbane River that tend to attract buyers to this region.”