Brighton, QLD 4017

Confidence

Buy

Rent

Yield

Show bedrooms

2BR

3BR

4BR

5BR

2BR

3BR

4BR

5BR

2BR

3BR

4BR

5BR

Keen to see RCS™ for houses?

Sign Up to Access

RCS™

Lower Risk RCS™

Capital Growth RCS™

Cashflow RCS™

Buy

Rent

Yield

Show bedrooms

1BR

2BR

3BR

1BR

2BR

3BR

1BR

2BR

3BR

Keen to see RCS™ for units?

Sign Up to Access

RCS™

Lower Risk RCS™

Capital Growth RCS™

Cashflow RCS™

Good to know:

Read More

Read Less

Quick Area Stats

Dwellings

Population

EDI

Bushfire Risk Index

Flood Risk Index

Education & Infrastructure

Sign Up to Access

School Rank

Infra. Spend

Market Trends

No Price Data
Loading…

1M

1Q

1Y

3Y

5Y

7Y

10Y

No Rent Data
Loading…

1M

1Q

1Y

3Y

5Y

7Y

10Y

Socio-economics

Sign Up to Access

IRSAD

Renter to Owner

Units to Houses

Projected Annual ROI

Volatility Index

Quick Area Stats

Sign Up to Access

Annual Sales Volume

Annual Rentals Volume

Stock on Market

Building Approvals

Inventory

Hold Period

Days on Market

Search Index

Vacancy Rate

Clearance Rate

2 thoughts on “Brighton, QLD 4017”

  1. The total adult population (15 years or older) of Brighton 4017 QLD is 7,732, with a median age of 42. Of those, 47.80% are married, 14.83% are divorced or separated, 32.54% are single and 4.77% are widowed.

    The average household size is 2.6 people per dwelling, and the median household monthly income is estimated to be $9,696. The median monthly mortgage repayment for households in this suburb is $1,993 which is 20.55% of their earnings.

    Source: ABS Census Data (2021)

  2. I will begin by saying that exorbitant growth in Brighton, QLD 4017 in the last 3 years is not indicative of an investment gem! We cannot forget the macroeconomic environment within which the growth has occurred—the access to cheap money in the last 3 years has been much easier that it is now when the interest rates are increasing. Remember, past growth is not indicative of future performance.

    I would personally stay away from Brighton, QLD 4017 as an investment area until indicators become more favourable.

    Let’s do a deep dive and see why.

    WHY:

    With a Relative Composite Score (RCS) of:
    1. 89 / 100 for risk;
    2. 58 / 100 for cashflow;
    3. 62 / 100 for capital growth;
    4. 66 / 100 score for overall.

    The RCS scores for Brighton, QLD 4017 are reasonable. Its low risk, encapsulated in the score of 89 for risk, suggests that investors’ investments will not be compromised by risk that eventuates from floods, bushfires, erosion, socio-economic risk, average age of properties, etcetera. Its capital growth score of reflects the 100% growth in the typical price in the last decade, 50% of which happened in the last 3 years. This is why the growth has been subsiding while the rents have been rising substantially — an 11.32% increase in the last year. Overall RCS score reflects a decent investment potential which is a perfect indication of research fallacy—looking at a single and isolated metric can definitely jeopardize your accumulated investment flex.

    Let’s look at other important metrics to see why the RCS score are not overly favourable:

    Fundamentals

    ISRAD score: 8 — the ISRAD metric highlights the socio-economic standards of the area in question. For Brighton, QLD 4017, the score of 8 represents very favourable conditions. This is indicative of an affluent area with populated with resident with superior buying power. Stopping here would make you jump on a call with a real estate agent right away to invest into Brighton, QLD 4017. Before you do, let me say this: affluent areas are usually attractive to developers which means that property could potentially be oversupplied in the area which tends to have a negative effect on price increases if demand remains flat.

    Investment is about balancing a multitude of different metrics to predict the future so a single variable is usually not the Holy Grail.
    Be patient, we need to look at other metrics.

    R|O Ratio: 20% — this relatively balanced score and one that is favourable for price growth. In comparison to Northern Brisbane Council, which score is 46%, Brighton, QLD 4017 represents a stand out and potentially a much more liveable place in comparison to its Council areas. A 100% difference between Brighton and its Council in the R|O Ratio is something to take note off.

    The flow on effect from this data point can go like this:

    Balanced or favourable R|O ration = better liveability = higher hold periods = restricted supply = price growth.

    Side note about hold periods: In simple terms, data indicates that people who own their homes are more likely to either sell them after a short period or keep them for a long time. On the other hand, investors are more likely to sell them after a few years.

    U|H Ratio: 1% — In addition to above, this figure is also extremely favourable, suggesting that area supports larger family compositions which tends to add to the stability of the area.

    The flow on effect is usually exemplified as such:

    Higher proportion of units = higher proportion of renters which = surplus in the supply of properties which = subdued price and rental growth.

    GRC: its GRC is extremely concerning and one of the reasons why I would shelf this area. Yes, I know, we should not make decision on a single metric however the long-term changes in the rate of growth of typical values in Brighton tells me that:

    • No cyclicality in the rate of growth is indicative of some aspects of market fundamentals being undermined. Potentially industry;
    • The growth has been very flat for the last 15 years. Yes, there has been compounding growth of approximately 5% annually since 2017, however, the area has rarely gone above the 5% mark in the last 15 years. This is particularly pertinent in the context of rising interest rates;
    • The area has experiences negative growth for 3 years straight which violates my zero-threshold rule—any area that has experienced negative growth takes a time out in my decision making.

    Supply Metrics

    SoM%: 0.42% (17 listings) — this is a relatively balanced number. However, a thing of concern is that its SoM% trend line has been increasing since 2020. More supply = subdued growth is demand remains the same. The negative gowth is compounded further is demand reduces. Let’s see if that will be the case.

    Inventory: 1.50 months — this is an opportunistic figure, however, akin to SoM%, the trend line has been edging upwards and sharply, which is of concern. Supply of properties have seen an increase and as mentioned, if demand stay the same, this affects price growth negatively.

    Hold Periods: 8.46 years —this is a balanced figure. The trend line has also seen an increase since 2008. What is concerning however is that since a year ago, hold periods have seen a sharp decrease from over 11 years to 8.5 years. This is a substantial decrease in the hold periods which combined with inventory and SoM% figures can dramatically impact the supply of properties in the future.

    Building Approvals Ratio: 1.04% — this is a rather balanced figure which does not tell us much at this stage. Why? Is supply is increasing through inventory and SoM% and demand is decreasing or remains constant, a balance in building approvals will not help us reduce negative growth in typical values.

    Demand Metrics

    DoM: 78 — this is a rather balanced figure but it is concerning that the trend line has been edging upwards. This means that demand for properties in Brighton, QLD 4017 has been steadily decreasing since 2020. When we couple this with inventory and SoM%, there is call for concern.

    Vacancy Rate: 0.34% (1 vacancies)—This is an opportunistic figure. However, looking at its graph, we get mixed messages. The trend line has been slightly increasing since 2020 while the number of vacancies has been substantially decreasing in the last 5 months. I would personally wait to see what the future brigs for this metric before I make a call on it.

    Overall, I would stay away Brighton, QLD 4017 until I see how it behaves in this new macroeconomic environment of increasing interest rates. Given that its typical value is less than 1 million, it could potentially continue blooming. Before I see that in the statistics, I am sitting this one out.

    For a cheat sheet which highlights what are unfavourable, balanced and opportunistic statistics, refer to our Data Dictionary.

    If you want something similar with better metrics, have a look at Noosa Heads, QLD 4567 which I did an overview for recently.

Leave a comment