Students Give Way As Suburbs Go Chic

Sun Herald

Sunday November 12, 2006

MICHELLE SINGER

BRISBANE'S inner-city suburbs have long been a haunt for university students.

The University of Queensland provided plenty of tenants for savvy investors who predominantly snapped up $300,000 homes and units to rent out to students.

Areas such as St Lucia, West End, Toowong, Taringa and Indooroopilly, only about four kilometres from the city, were targets for these investors who wanted cheap housing.

But as demographics change and factors such as traffic congestion worsen, these suburbs have undergone a significant period of growth.

The suburbs' proximity to the city, upgraded transport routes - such as the cycle path and CityCat catamaran available along the river - and extensive shopping, restaurant and cafe amenities have helped drive up the value of such places.

Agents such as RE/MAX Property Centre's Karen Mortland said students had been replaced by young families.

She said entry-level prices in St Lucia were between $250,000 and $270,000 when she started working in the area 10 years ago. Now prices start at $500,000, with the median house price this year at $678,000, more than double the regional median.

In the six months to September, the median house price in Indooroopilly has risen 10 per cent in value to $582,000.