Login
iscover
Here are the places to watch out for in 2017, according to Australia’s largest body of professional buyer’s agents.
Investors are on the lookout for suburbs primed for strong future growth as these are more likely to avoid the ups and downs of the property cycle, Real Estate Buyers Agents Association of Australia (REBAA) president Rich Harvey says.
“It could have planned government infrastructure developments, gentrification potential, or if it is already established, have limited scope for mass redevelopment ... this means it avoids any potential oversupply,” Mr Harvey said.
Investors will be keeping an eye on the demographics of the suburb to pick where demand will be strongest. For example, up-and-coming suburbs with new eateries or entertainment options are a good pick.
Mr Harvey said other areas in high demand are suburbs popular with families and professionals. These are commonly areas that have recently undergone infrastructure development or already have strong infrastructure in place.
“Find out how many properties sell each year in the suburb, why people move in or move out, the demographics and trends including unemployment, the percentage of owner-occupiers versus investors, median price changes and auction clearance rates and most importantly, any likely increase in property supply forthcoming,” he said.
Location, location, location
Depending on the area, the same house could be work a million dollars more. Buyers will be looking for infrastructure and amenities, and buying a huge house on the cheap won’t benefit you if nobody is going to be interested in the location.
Where to buy?
Brisbane
“The best potential for long-term capital growth and stability will be established property within a 15km radius of the Brisbane CBD, specifically those with value-adding potential or in blue chip locations. If you’re looking for a ‘bargain’, some investors will choose to offload units and apartments possibly at a slight loss in some situations so that could be also considered a ‘best buy’, but this strategy comes with caution as the unit and apartment market will stay soft of a little while yet,” Mr Harvey said.
Sydney
New transport links are going to be the biggest capital growth builders, as well as suburbs undergoing gentrification.
“The best places for investors to seek capital growth are those suburbs adjacent to new transport infrastructure that will benefit from reduced travel time and suburbs undergoing gentrification. Investors should also look to seek apartments and houses that can be renovated to boost equity,” Mr Harvey said.
Perth
“The best places to invest in the WA market are within the Perth metropolitan area, ideally within a 25km radius of the CBD. If it is possible to buy larger land holdings with development or re-zoning possibilities in these areas, they are almost always a sure investment at the right price,” he said.
Canberra
Mr Harvey recommended the inner north corridor to tap into the light rail project along Northbourne Ave.
“I would recommend freestanding homes on 600-800 square metre blocks in Downer, Dickson, Lyneham and surrounds, with a budget of around $750,000-850,000,” he said.
Melbourne
“For units, Reservoir has excellent opportunities, but only in certain pockets. Being one of the largest suburbs geographically in the city, buyers need to be discerning as some areas are better than others. Heidelberg is a gentrifying suburb attracting buyers priced out of Ivanhoe. With good infrastructure including shops, schools, parks, hospitals and train station, expect Heidelberg to perform well in 2017,” Mr Harvey said.
Newsletter
