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Report identifies nation's investment hotspots

17 January 2013 Reporter

A new report has identified the top Australian suburbs geared for capital growth in 2013.

The 2013 Fast 50 report from Residential Property Manager's sister publication Smart Property Investment was dominated by Queensland suburbs.

The report’s contributors, included leading property economist Dr Andrew Wilson; TV personality and property expert Margaret Lomas; property research specialist Louis Christopher; property columnist Terry Ryder; property mentor Helen Collier-Kogtevs; and Positive Real Estate chief executive and co-founder Sam Saggers.

The Smart Property Investment Fast 50 hotspots were selected based on a range of key metrics including population growth, demand for housing, income levels, employment, vacancy rates, previous capital growth and current gross rental yields.

Suburbs with major infrastructure projects, resource-rich regions and affordable housing will underpin investment success in 2013, according to the report.

Mining and resource sectors across Queensland and Western Australia dominated the list, with 17 suburbs and 11 suburbs respectively making the Fast 50 list.

Affordable housing in Sydney’s western suburbs and regional markets helped New South Wales secure 11 places in the report.

According to Smart Property Investment editor Phillip Tarrant, the Fast 50 report provides investors with a valuable snapshot of which locations currently present the sharpest investment prospects.

"This is a challenging market right now and if you’re looking to make a fast buck without doing your research there’s a good chance you’ll get your fingers burnt.

“That said, this report demonstrates that there are still lucrative opportunities out there for investors who are looking for solid capital growth potential – regardless of the broader market conditions,” he said.

In addition, Mr Tarrant said the 2013 report highlights the growing significance of housing affordability and reinforces the investment opportunities located outside capital city markets.

“Capital city markets have long been considered a safe and sensible investment option. However, a growing number of investors are turning to outer suburban markets because of their lower buy-in costs and tight vacancy rates,” Mr Tarrant said.

“Some of these locations, such as the western Sydney suburbs of Blacktown and Penrith allow investors to enter the market at a reasonable price with the option of adding further value through cost-effective renovations.

“There are some very attractive opportunities out there right now which are driven by local economic factors, housing supply and demand and demographic shifts. Add to that a cash rate of just three per cent and there is great potential for investors who do their homework,” Mr Tarrant said.

Report identifies nation's investment hotspots
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