Suburb Claims Golden Crown

While many of Brisbane’s most fashionable and sought-after suburbs have been gentrified with a lot of help from planners and taxpayer dollars, the transformation of one former working-class neighbourhood has been entirely market-led.

Rising from its ramshackle industrial past, this suburb has claimed the crown as our most exclusive real estate ‘golden mile’ on the Brisbane River.

Bulimba’s ship comes in

BULIMBA stole Brisbane’s riverfront real estate crown with a 2015 performance that saw it account for almost 30 per cent of the city’s entire river market.

Dixon Family Estate Agents’ biannual On the River market report provides an on-going picture of residential riverfront and riverside sales activity (excluding units) from the mouth to Moggill. Just released, our March 2016 report reveals Bulimba shot to the top of the leader board during 2015 on every measure – number of sales, total sales value, and average riverfront house price.

The resurgent suburb was the location of almost a quarter of Brisbane’s 51 river sales, with 12 transactions totaling $38.37 million, equating to 27.5 per cent of the $139.7 million citywide tally across 20 river suburbs.

Bulimba’s average riverfront house price was 15.6 per cent higher than the average across all river suburbs, at $3.28 million compared to $2.84 million. The river market focus shifted dramatically from Hawthorne, which had recorded seven sales in 2014, but saw none in 2015.

Urban renewal in many other areas has been government-led, but Bulimba’s transformation is entirely market-driven. Precincts like New Farm and Teneriffe were renewed as a result of deliberate planning strategies and plenty of taxpayer dollars.

Bulimba’s gentrification was first fuelled by the sale of major industrial holdings like the Rheem, Hornibrook and Telstra sites 10 or 15 years ago, and it as just kept gathering momentum.

Quay and McConnell streets were once lined with cottage industry boat builders, littered with boats on stands in backyards, ramshackle jetties and tin sheds. But with the advent of new environmental standards and land values escalating, many moved out to the Port of Brisbane and Hemmant or cashed in on rising prices to sell up and retire.

Now underpinning Bulimba’s shining performance is its mix of lifestyle attributes, legacy boating facilities, and ferry access. It offers the closest absolute riverfront houses to Moreton Bay and Moreton Island, has CityCat transport to the CBD, and a charming village with a lively café and boutique shopping scene.

Developments like the new luxury cinema complex just completed by Cineplex on Hawthorne Road, opposite their existing Hawthorne Cinemas, underline the trend. The $3.5 million boutique, gold-class-style venue features 64 deluxe seats, a state-of-the-art sound system and a full kitchen and bar.
Access to leading private schools including Church of England Grammar, Lourdes Hill, Somerville House, Moreton Bay College and Villanova is also an important driver of high-end residential demand.

As Bulimba’s gentrification gathers pace, we predict more growth ahead for a suburb increasingly dominated by first class real estate. The planned sale of the Bulimba Barracks site will be another growth catalyst.

Council’s master plan indicates the riverfront will be retained as parkland, which is a plus. This also means the site is unlikely to add to the supply of absolute riverfront opportunities. So limited availability of houses and land on the river in a rising market can only mean upward price pressure will continue to be applied.

Dixon Family Estate Agents On the River found there were 51 residential river house and land sales across Brisbane in 2015, including 31 absolute riverfront properties and 20 ‘riverside’ (separated from the river only by a reserve or public thoroughfare) lots.

The highest price paid for an individual house on the river was $8.5 million for a home on 1,639m2 in Oxlade Drive, New Farm. A landmark eight-bedroom home in Harbour Road, Hamilton sold for $11.5 million, but the transaction included a second title and a development application for a 10-storey building.

The least expensive riverfront buy was a Priors Pocket Road, Moggill acreage with a renovated five-bedroom family home, considered good buying at $849,000.

While fewer absolute riverfront sales occurred last year, there was a significant jump in riverside activity and transaction value. That market saw some very healthy sales, including $7 million for a 1,214m2 development site in Oxlade Drive, New Farm, and two modern multi-storey homes at Teneriffe, which both topped $5 million.

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Suburb Claims Golden Crown