Article: House buyers target outer suburbs as attractive buys

[ozbob]

From Courier Mail click here!

House buyers target outer suburbs as attractive buys

House buyers target outer suburbs as attractive buys
Article from: The Courier-Mail

Melissa Ketchell

October 25, 2008 12:00am

RISING fuel costs and an overcrowded public transport system haven't daunted home buyers, who continue to flock to the outer suburbs for bargains.
More homes are changing hands in Brisbane's outer suburbs while the city's inner-ring suburbs - less than 5km from the CBD - suffer one of their quietest times in a decade.

New Farm, in the city's inner north, has seen only a handful of house sales in the past two months as determined sellers hold firm with their prices.

Volumes are down in the outer-ring areas but still much higher than in their inner-suburban counterparts.

There were roughly the same number of transactions in inner and outer-ring suburbs a decade ago, according to research by Colliers International.

"Today, the outer-ring suburbs are seeing roughly double the number of transactions as the inner-ring suburbs," its October Marketwatch report said.

As debate continues about whether to put a brake on urban sprawl to consolidate the inner city, affordability and the desire for more space is fuelling growth well beyond the city's heart.

It has been a long-held belief among property analysts and investors that homes close to the city appreciate more rapidly than in the outer rings.

But the $400,000 you spend on a one-bedroom unit in New Farm or the CBD will buy you a brand new, four-bedroom house with a yard for the kids to play in at an estate such as Delfin's Woodlands, south of Brisbane near Bethania.

At North Lakes, to the north of Brisbane, living in an outer suburb has not been an obstacle for the Burls family.

Paul Burls works at Eudlo on the Sunshine Coast.

His wife, Catherine, said the proximity of a major shopping centre within the estate and other facilities were part of the appeal.

"We hardly ever go into the city," Ms Burls said.

She said that while North Lakes, 25km from the CBD, was further out than their previous home at Murrumba Downs, they didn't mind the extra travel.

"For us it's about the quality of life," Ms Burls said.

"We prefer things to be new, not like in older suburbs.

"We like the modern things and we were able to get our first house-and-land package for a little over $400,000."

But living close to the city has inherent savings, especially relating to transport, which compound year after year.

Griffith University researcher Jago Dodson, who has studied household vulnerability to petrol inflation and mortgage issues, said Brisbane's newest suburbs were the most affected.

Mr Dodson said inner-city New Farm, 2km out, was less vulnerable, while suburbs a few kilometres further out, such as Kenmore, 10km out, was more affected by petrol inflation and mortgage stress.

His research found vulnerability was highest in outer-ring suburbs such as Brown Plains, Caboolture, Capalaba and Redcliffe.

According to the Colliers International report, the affordability of outer-ring suburbs had seen them grow in popularity.

"As home buyers become more price-sensitive, suburbs not previously considered become more attractive, even if the intention is just to get a foot in the door of the property market,"the report said.

The sad reality as Mr Dodson points out is the compounding affects of being public transport poor, captive to the increasing costs of car transport  - fuel costs and the looming tolls, and possible mortgage stress.  The Government and local councils are just not able to turn it around. More of the same is just more and more pain.  Increasing road congestion and diminution of quality of life for all.  Who holds sway?  The community or developers? 

At least there is talk of some TODs at Milton and Albion, and the 'Gabba.  But allowing the outer urban sprawl to continue without public transport support is a formula for much angst in the years to come ...

[O_128]

I feel sorry for these families.ALthough it is cheap now they wil lbe the first to cry when fuel is $2 a litre and tehy are demanding better transport.Especially North lakes which has no plan in place for future transport. bar springfiel albeit to 2015 if that]