Media Release

In the five years to December 2008, annual median price growth of apartments within Bowen Hills has averaged a solid 6.8%. More recently, between 2006 and 2007 the annual median price growth rate was 7.9%, with 2007 to 2008 recording an astonishing 9.9% average growth in median apartment price. As at May 2009 the median price of an apartment in Bowen Hills is $415,000.

New development within the area has been limited due to the Urban Land Development Authority's focus on Bowen Hills' neighbouring suburbs of Fortitude Valley, Newstead/Teneriffe and New Farm. With the shift in the urban renewal program now towards Bowen Hills, a strong growth in demand is forecast for new properties within the area.

Since the March 2005 quarter, average annual growth in median weekly rents across Bowen Hills has been:

  • 1 bedroom - 8.9%
  • 2 bedroom - 8.9%
  • 3 bedroom - 7.6%

As the rental market begins to feel the effects of inner Brisbane's rising housing affordability problems, one-bedroom apartments are forecast to lead median rental growth over the short to medium term. Bowen Hills' strong rental growth has resulted in gross rental yields sitting at 5.0% as of November 2008. It is important to note that this yield is led by much older, established stock and should not be used as a benchmark for new apartment product. Across inner Brisbane the current gross rental yield is 6.4% which is a much better reflection of market conditions.

A vacancy rate of around 3% is generally accepted as an indication of a balanced market. The current vacancy rate across inner Brisbane is at 1.3%, trending downwards. This is the lowest vacancy rate in the country and indicates a very tight rental market which is consistent with the measure of dwelling deficiencies in Bowen Hills.

The above information is indicative only and does not constitute formal advice. Purchasers should seek their own information and advice.

Source: Resolution Research Strategists