Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Today’s top-performing city is probably not the one you thought it was

By Sasha Karen
26 September 2018 | 1 minute read
australia850

As property managers or BDMs, your clients prefer to invest in the best-performing capital city market. But given the circumstances in the current market, this one might not be the capital city you imagined, according to one property expert and lecturer.

Speaking to REB sister publication Smart Property Investment, Peter Koulizos, chairman of the Property Investment Professionals of Australia and lecturer at TAFE SA and the University of South Australia, highlighted that Adelaide is currently the best-performing capital city market on the mainland and has great potential for future growth.

“If you were looking to buy into a market, I reckon you’ve got two options: theres either Adelaide or Brisbane because basically everywhere else is going backwards,” the PIPA chairman said.

Advertisement
Advertisement

With the previous success of Sydney and Melbourne over the last 10 years, Mr Koulizos said that the next 10 years are unlikely to do well, while Adelaide and Brisbane are next in line to see growth.

“Im not saying theyre going to have double-digit growth for the next three or four years, but if you were looking to park your money somewhere for the next five or 10 years, it wouldnt be Sydney or Melbourne because theyve already had their growth. It wouldnt be Hobart; it's already had its growth. [Therefore, its] Brisbane and Adelaide.

“Since 2007, [Brisbane and Adelaide] havent really experienced that upward swing, so sooner or later, Adelaide and Brisbane are going to take off. Now, the early signs are that its Adelaide.”

The major reason for Adelaide’s high level of performance, Mr Koulizos said, was due to the affordability of the state’s market.

“Maybe 12 months ago, you could afford to borrow $700[,000], but everything else being the same, your wages being the same, your partners wages being the same, expenses havent increased, now you might be able to only borrow $500,000,” the chairman said.

“Well, if you were looking to buy, say, in Sydney and Melbourne, $700,000 gave you a fair few options. $500,000 doesnt give you many. But you go to Adelaide, $500,000, youve got a lot of very good options, you can buy close to the city, character properties on a reasonable size block of land. So, you have some very good capital growth options.”

Regardless, Mr Koulizos said that investors need to focus their efforts past the capital city and refine their search to locate a suburb, then down to a street, then to a property, “because location is almost everything in property”.

The chairman said: “You can change everything else. You can change the house, you can make it bigger, you can make it smaller, you can knock it down. You can make it better by renovating it. You can make the block smaller by subdividing. You can make the block bigger, which is expensive, by buying the next-door neighbour’s. But you can never change where it is, so you want to make sure youve got your macro location, your capital city and your suburb right, and your micro location, your street and your position within the street.”

Today’s top-performing city is probably not the one you thought it was
australia850
lawyersweekly logo
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.