With 2020 now in full swing, optimism was running high and market predictions were red hot, then COVID-19 happened. However, despite the evident adverse impacts on economies internationally, it’s not currently anticipated that the virus will have a significant effect on the Australian property market. What a difference a year makes though. In a recent Reuters poll, 13 top property analysts believed that home prices could rise by 5% thanks to interest cuts from the Reserve Bank. This is a massive contrast to mid-2019 when many commentators were speculating on how far the national market would dip. In that case, if there are price rises imminent, where are the hot spots for growth? Let’s take a look at the top ten.
1. Sunshine Coast, Queensland
Rainforests. Beaches. This is an area Australians love to escape to, and often. Noosa has had the highest unit growth in Australia last year (24%). Golden Beach and Warana were also strong performers (15%), whilst Eumundi (26%), Twin Waters (15%) and Wurtulla (15%) have been ones to watch. Areas such as Caloundra West, Kawana and Nambour are still affordable.
2. Marion, South Australia
A magnet for first home buyers and investors on a budget, this area is showing a lot of promise. Price rises are seeing growth in Edwardstown (8%), Mitchell Park (7%), Trott Park (7%) and O’Halloran Hill (5%).
3. Bendigo, Victoria
Bendigo has wine-bars, laneway cafes, big employers, lush parks and excellent local produce. For a Victorian regional city with the lot, its price-points are surprisingly affordable. Properties are often listed at $370k or less. There’s even a newly completed regional rail link to get you from A to B.
4. Moreton Bay Region, Queensland
With Universities, excellent rail and more development projects on the way, this area continues to outperform. The standouts last year were Woody Point (8%), Strathpine (7%), Bray Park, Burpengary East, Murrumba Downs, Narangba and Petrie (all 5%). Many of these suburbs are still very affordable with many in the $300k range. Additionally, the median house price is below $500k.
5. Stirling, Western Australia
A tourism mecca with beautiful beaches, this area is going from strength to strength. The top performers have been Balga, Nollamara and Westminster, which all have median prices in the vicinity of $300k, with median rental returns of 5.1%, 4.7% and 4.7% on median rents of $300 p/w.
6. Darebin, Victoria
This area, which takes in numerous northern suburbs, is riding the hipster wave with cool bars, craft breweries and fixie bikes taking a hold everywhere. Strong performers as a result are Northcote which is up 9%, followed by Coburg and Thornbury which have grown 5% in median value over the past year. Order a single origin blend cold-drip coffee and contemplate that one!
7. Port Adelaide Enfield, South Australia
A ship building hub, this location is well suited to investors looking for higher rental returns combined with excellent affordability. Broadview and Gilles Plains have seen growth at 9%, with Greenacres, Hillcrest and Semaphore Park increasing by 6%.
8. Mackay, Queensland
Situated on the coral sea coast, Mackay is coming into its own as a location with good job opportunities and excellent property affordability. Strong growth in the region has been seen at Mt Pleasant (21%), Sarina (15%) and West Mackay (13%). This region is noteworthy as it actually had the strongest house price growth of any Queensland region in 2019. It’s one to watch, or act on.
9. Joondalup, Western Australia
A metro city within Perth, Joondalup is in the midst of a revitalisation. It offers a beachside locale with plenty of amenities and infrastructure. There’s a new waterfront project going in, and the city itself is being improved. Vacancy rates on rentals in the area are very low (-3%), making it a consistent investment. Expect to pay around $475k in Joondalup and some nearby suburbs.
10. Latrobe Valley, Victoria
The Latrobe Valley powers Victoria’s energy needs, and in recent times, their property prices are also powering ahead. Moe has recently rose 11%, Newborough is up 7% and there is a lot of sales activity in Traralgon. This town has investor appeal thanks to 5.3% rental yields and healthy $310p/w median rents.
The above material should be taken as a general guide and not investment advice. Considering your property options? Chat to a First National representative today.
Sources and stats quoted from: Canstar Research December 2019, and Money Magazine December 2019.