Cafes help stimulate market on southside
Coffee shops are emerging in areas not known for their cafe culture, which real estate agents hope will translate into price increases writes Kieran Rooney
BRISBANE’S traditional trendy suburbs of Paddington and West End have been challenged for top spot in cafe society with an influx of new coffee shops in Upper Mount Gravatt and Indooroopilly.
According to figures from Brisbane City Council more coffee shops have appeared in areas not previously known for their cafe culture.
Upper Mount Gravatt stood out in the data on cafe and restaurant applications.
It went from two applications in the 2010/11 financial year to 14 in 2012/13.
In the same time frame applications for new cafes in Paddington dropped from 15 to seven.
New cafes, restaurants and amenities can help lift demand in suburbs with the hope that more demand will eventually lead to a lift in values.
Ray White Mt Gravatt principal Grant Boman said he was surprised to hear the area was so popular for cafe owners.
“I’ve never thought that was the case specifically although I’ve seen an increase in those facilities across the entire 4122 postcode,” he said.
Mr Boman said Upper Mount Gravatt, and surrounding suburbs, had experienced a renewal that may be behind the data.
“Most of the houses were bought in the 1950s and 1970s, older residents are downsizing and moving on to the next stages of their lives,” he said.
“Because of that young families are realising houses here are affordable and have good services and are starting to appear more in the suburb.
“That has happened over the last few years and will continue with the redevelopment of Westfield Garden City.”
Mr Boman said the new cafes were also responding to demand from customers.
“We’ve been starved for very good coffee in the region and slightly cheaper rents for stores would have helped that as well,” he said.
There were 140 house sales in Upper Mount Gravatt in the last 12 months, according to RP Data. The median house price rose by 0.3 per cent in the past year.
Overall Brisbane’s south emerged as the area with the most cafes, with six of the top 10 cafe suburbs located south of the CBD. The data showed more cafes had appeared across Brisbane with 460 applications in the 2012/13 financial year, up from 360 in 2008/09.
Woolloongabba, Indooroopilly and Hamilton also recorded a strong rise with applications doubling and even tripling over the last three years.
There have been 52 house sales in Woolloongabba in the last 12 months, with the suburb’s median sale price down by 8.5 per cent during the last quarter.
Indooroopilly recorded 114 house sales with its median down 1.4 per cent for the quarter while at Hamilton there were 57 sales with its median down 15.6 per cent.
LJ Hooker New Farm principal Brett Greensill said areas like Carindale, Sunnybank and Upper Mount Gravatt could expect the same changes New Farm went through when it developed a cafe culture.
“I think that whole idea of going to a nice cafe started in New Farm for Brisbane,” he said.
“It means you not only see the development of these villages and shopping centres but also little independent places as well.”
Mr Greensill said he was not surprised cafes had spread to outer suburbs.
“Once upon a time if you went west of Toowong you couldn’t buy a coffee now you can order a latte in Ipswich and no one will laugh at you,” he said.
“Over time we will see more and more cafes moving out of the inner-city, as they are doing with Upper Mount Gravatt and Sunnybank, and the locals will support that.”
RP Data figures reveal Sunnybank house prices rose by 2.5 per cent in the last quarter.