Sydney and Melbourne might have seen record price growth in recent years, but for investors looking to cash in on real estate riches our two biggest cities are no longer Australia’s property hot spots.
National property expert Terry Ryder has crunched the data on his top 10 best buys of 2016 and is predicting previously overlooked areas are going to see prices take off in coming years.
Gold Coast City, in South East Queensland, was his top pick with spending on infrastructure- including a $500 million athletes’ village, $200m airport expansion and $2 billion resort and casino, among projects expected to shoot up prices.
Mr Ryder said while he had previously avoided recommending the Gold Coast because of its poor track record on capital growth and boom-bust history, the precinct could no longer be ignored.
He said the region was the no. 1 LGA in Australia in the Price Predictor Index and with billions being spent on infrastructure growth in the residential suburbs was unavoidable.
However, he said buyers should be wary of high-rise apartment projects in the area which he said were facing an oversupply.
Hobart, Tasmania ranked in at number two with improvements in the economy expected to benefit the local property market.
“Hobart often flies under the radar or is seen as a no-go area to investors, but with building activity rising and unemployment falling it now offers a pretty could package,” Mr Ryder said.
He said strong rental yields in the area offered strong incentives for investors looking to make money.
Moreton Bay region in Queensland ranked it and number three, with Mr Ryder predicting its existing affordability and $980 million spending in new infrastructure to help prices jump.
“Four of the cores suburbs of this region have each sold over 350 houses in the past 12 months. Three of the four have median house prices below $350,000,” Mr Ryder said.
While Mr Ryder said Melbourne’s city had passed its peak, three Victorian areas made the list Epping precinct, City of Greater Geelong and Sunshine precinct.
Playford and Charles Sturt in South Australia were also expected to see prices jump with affordability driving high yields. Logan City in Queensland also ranked for its affordability and $450m motorway update.
Mr Ryder said when it came to investing in the next 12 months infrastructure was the most important factor.
“There’s a risk level you take on when you know of upcoming infrastructure,” Mr Ryder said.
“If you get in before the infrastructure is certainly going ahead you can get a big pay off, but if it doesn’t go ahead obviously lose.”
“The best time is to get in at the building stage, then you can be certain a project will be completed, but the value hasn’t been fully realised.”
He also said while buyers needed to be wary of boom-bust mining towns, regional areas were offering better opportunities than their city counterparts.
“Areas that have previously been overlooked offer the best opportunities,” Mr Ryder said.
TERRY RYDER’S BEST BUYS OF 2016:
- Gold Cost City, Queensland
- Hobart, Tasmania
- Moreton Bay Region, Queensland
- Charles Sturt LGA, South Australia
- Logan City, Queensland
- City of Greater Geelong, Victoria
- Sunshine Coast Region, Queensland
- Epping precinct, Victoria
- Playford LGA, South Australia
- Sunshine precinct, Victoria