Over the coming weeks, I’ll be providing an update on some of the suburbs we’ve been most active in these past few years.
For those unfamiliar with Blue Wealth, our research process involves identifying cities and suburbs in the opportunity or correction phase of the price growth cycle using trend analysis similar to what you can see in the figure below (source: Blue Wealth Property and RP Data). Brisbane’s West End approached this point in late 2012 when it began its exit from a cyclical trough spurred by a combination of strong population growth, continued gentrification and a burgeoning infrastructure program centred on the Kurilpa Masterplan.
Between December 2012 and August 2015, the median price of an apartment in West End increased by 23 per cent, with the median price increasing by $120,000. Over that time, 240 Blue Wealth clients purchased research approved property in West End. An important note: purchasing the right property is as important as selecting the right market. Blue Wealth’s philosophy of the right asset in the right market at the right time ensures that importance of asset selection is maintained at the fore.
Compare West End’s apartment price growth to Sydney city proximate suburbs like Paddington, Glebe or Bondi Junction, in which apartment growth over the same period was 10.1, 20.6, and 22.5 per cent respectively. These suburbs have a significantly higher cost of entry, prohibiting investment from a significant proportion of potential investors. That similar apartment in inner Sydney would set you back at least 50 per cent more than the West End investment.
Brisbane’s relative affordability to its southern neighbour will help insulate its property market from interest rate induced market fluctuations once the Reserve’s rate policy begins its trajectory upward.
What you’ve read above highlights the important of research when making one of the biggest investments of your life. As always, get educated, get professional support and take action.
