Ensure you never miss an issue of the
real estate business bulletin
7 southern suburbs to boom

7 southern suburbs to boom

by Vivienne Kelly 0 comments

Seven suburbs that could deliver investors nation-leading capital growth have been identified in a new report.

Six property experts and commentators have chosen the 50 suburbs across the country primed to deliver investors the best returns in 2015 for Smart Property Investment’s annual Fast 50 report, with two hailing from South Australia and five in Tasmania.

Tasmania’s appearance in the report marks a stark turnaround from last year, when none of the state's suburbs made the cut. 

SQM Research managing director Louis Christopher – one of the six expert panellists – said parts of the Tasmanian market could be on their way to recovery. 

He pointed to Clarendon Vale in northern Hobart and said the suburb’s cheap entry point and strong rental yield would act as drawcards for investors this year.

Mr Christopher warned that the Hobart economy still had long-term issues, but said investors who did their due diligence and stuck to houses could do well in Clarendon in the year ahead.

He also said Hobart Central was set for a turnaround, with rents on the rise and signs of increased economic activity and development. He advised investors to target inner-city units, while again warning that the state’s long-term economic prospects remain the biggest risk for investors.

wHere group’s Todd Hunter selected Gagebrook and Bridgewater in Tasmania and described the locations as his "cheapie suburbs of choice" for investors in the year ahead.

“Although there are social issues and unemployment, the yields on offer make these two suburbs very attractive,” Mr Hunter said.

He said investors should try to nab a property for under $140,000 in these suburbs to maximise rental yields, but warned the timing was everything.

“When the Hobart market goes quiet it shuts off completely, so market timing is crucial for purchasing as well as selling.”

Hotspotcentral’s Michael Fuller chose Mornington, saying it was an affordable option compared with neighbouring suburbs and offered strong yields.

In South Australia, Destiny Financial’s Margaret Lomas said Salisbury would be a market leader.

She said low land supply and ongoing gentrification were set to drive prices higher. Investors who buy in the mid-$200,000s should be able to secure strong returns, according to Ms Lomas.

Mr Fuller also selected Marden and believes "the long, dry patch in terms of growth seems to be about to end” for the suburb.

He said Marden recently experienced a perfect auction clearance rate as well as “very high rental growth over the past 12 months and a large number of people showing interest in the market compared to the number of properties available” – all pointers to healthy capital growth.

7 southern suburbs to boom
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?