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

The Courier-Mail - Property - - REALESTATE INSIGHT -

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.

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