Cannon Hill

[bluesman]

Hi all,

Interested on some insiders thoughts on Cannon Hill in Brisbane. I've been researching the suburb and noticed a lot of activity planned with the rezoning under the River Gateway Neighbourhood Plan. Prices have understandably jumped and there appears to be plenty of renovation happening and a number of small and medium apartment developments are popping up around the station and along Wynnum Road.

The suburb is well located, 6-8kms from the city with good transport links, good schools and is close to more expensive suburbs such as Morningside, Hawthorne and Bulimba but just doesn't seem to have a lot in the way of local restaurants, cafes and shopping. Council and developers appear to have earmarked the area for gentrification and the $600m East Village project by the developers of Emporium will bring cafes, restaurants, cinema etc helping lift the profile and liveability.

I also notice Council has earmarked funds to develop a new public golf course in the area which can only be a positive...

My budget and the desire for a low maintenance investment option has me focused on apartments. The suburb currently only has 2-3% of housing stock in apartments but this will increase with the new zoning rules and a number of new developments planned for the next few years. What are people's thoughts about the long term prospects for apartments in the area, is demand likely to match supply? The demographics show a large proportion of younger residents moving into the area and a large increase in average income.

Does anyone have any insight into the impact in other areas post - rezoning? Are apartment prices likely to lift as new stock enters the market over the new few years or do people envisage an oversupply and low growth?

Thanks!

 

[RPI]

Hi

We have done the legals on 5 of the apartment complexes near the corner of Wynnum and Creek Roads. There are another 3 or 4 there adjacent.

There will be a lot of stock coming on board there over the next few years but i believe that the early to market ones will be good. The later guys are looking at pricing theirs higher as they will be complete once Emporium is finished.

I know that the bank has valued the 2 and 3 bed units in 2 of those complexes at slightly higher than what the anticipated sale price is (as in the developers bank valuer for development finance purposes). The new emporium complex across the road will have great facilities and will be at a higher price point than those to the south.

How it ultimately ends up I am not sure as the first off the plan sales are only starting on the southern ones.

 

[JDP1]

Hi all,

Interested on some insiders thoughts on Cannon Hill in Brisbane. I've been researching the suburb and noticed a lot of activity planned with the rezoning under the River Gateway Neighbourhood Plan. Prices have understandably jumped and there appears to be plenty of renovation happening and a number of small and medium apartment developments are popping up around the station and along Wynnum Road.

The suburb is well located, 6-8kms from the city with good transport links, good schools and is close to more expensive suburbs such as Morningside, Hawthorne and Bulimba but just doesn't seem to have a lot in the way of local restaurants, cafes and shopping. Council and developers appear to have earmarked the area for gentrification and the $600m East Village project by the developers of Emporium will bring cafes, restaurants, cinema etc helping lift the profile and liveability.

I also notice Council has earmarked funds to develop a new public golf course in the area which can only be a positive...

My budget and the desire for a low maintenance investment option has me focused on apartments. The suburb currently only has 2-3% of housing stock in apartments but this will increase with the new zoning rules and a number of new developments planned for the next few years. What are people's thoughts about the long term prospects for apartments in the area, is demand likely to match supply? The demographics show a large proportion of younger residents moving into the area and a large increase in average income.

Does anyone have any insight into the impact in other areas post - rezoning? Are apartment prices likely to lift as new stock enters the market over the new few years or do people envisage an oversupply and low growth?

Thanks!

cannon hill will and has plans to develop a lot more. Yes, this means more supply. Short term, there may or may not be much CG, but the medium and long term prospects are excellent- its location is good, infrastructure is going into the area, and once populations grows the services and businesses like restaurants etc will also come.
I would look to get some land component in the area [ if houses are too high maintenance for you, seek townhouses or large apartments], as that will give added strength to CG and serve as a differentiator in the longer term.

 

[bluesman]

Thanks for the thoughts - it's interesting the lack of interest in the area. A search on this site brings up very few references to a suburb that shows strong consistent growth and a number of drivers that suggest future potential

 

[JDP1]

Thanks for the thoughts - it's interesting the lack of interest in the area. A search on this site brings up very few references to a suburb that shows strong consistent growth and a number of drivers that suggest future potential

I suspect that's because a fair amount of development is planned in the short term. Real estate is a medium -long term game.

 

[vbplease]

There's something strange going on with the median house price in Cannon Hill.. YIP says its $670k http://www.yourinvestmentpropertymag.com.au/top-suburbs/qld-4170-cannon-hill.aspx compared to $640k in Morningside.. so that's obviously wrong.
RE.com says its $726k http://www.realestate.com.au/neighbourhoods/cannon hill-4170-qld

I reckon it would be more like $520k ish?

I think Cannon Hill would be a great place to buy into considering the new developments and the $100k cheaper price for a house compared to Morningside. I wouldn't touch the units though.. You may think demand may catch up to supply.. then in 5years time they build another group of apartment buildings

 

[hugh72]

Don't know about 520, Carina is 555. The CBA phone app lists Cannon Hill at 670k which might be slightly high but not that far out?
I agree that Morningside is a more expensive suburb than Cannon Hill but I haven't followed either closely recently

 

[RPI]

A lot of Cannon Hill activity has been for development sites, aggregations of 600m2 ish blocks to build 5 storeys on but the individual blocks are still expensive. This has skewed the medians.

 

[RyanMcHarg]

I have been responsible for a large percentage of the sales of development sites in the Cannon Hill area and will be soon working with some of the resales of unit and townhouse stock as a result of the River Gateway Neighbourhood Plan.

There is a fair bit of stock in the short term coming onto the market in the short term although a lot of the larger raw development sites have already been snapped up, so once this rush is over we won't see as many large parcels of development land available that meet the requirements to go to the larger heights of 5 levels. The other suburbs which were affected by the new neighbourhood plan also include Murarrie and Morningside.

From a housing point of view we are seeing houses being bought with the intention to be knocked down and a new home built on, with some recent sales being as high as 600K for a knock down and rebuild home site of 607m2.

There are a lot of facilities coming into the area on the back of East Village and well established shops and good schools, all in close proximity to large entertainment hubs such as Bulimba, and close proximity to the CBD.

A lot of the new unit developments will have city views, but just make sure that they aren't going to be built out by other surrounding or proposed unit developments.

 

[RyanMcHarg]

Don't know about 520, Carina is 555. The CBA phone app lists Cannon Hill at 670k which might be slightly high but not that far out?
I agree that Morningside is a more expensive suburb than Cannon Hill but I haven't followed either closely recently

Morningside sales price differ a lot depending on what section of Morningside the houses are in, where as there is more consistancy in the pricing of sales in Cannon Hill. Morningside is scattered between high on the hill bordering Balmoral with city views, though to the border of Seven Hill near the rail line. We are seeing brand new comporary houses in Cannon Hill on 405m2 blocks sell in the mid 9's although a lot of the new contemporaries in Morningside are sitting in the high 8's to early nines on average.