There is no magical crystal ball when it comes to picking the next real estate ‘hot-spot’. But I’m glad about that, and here’s why…
- I’d get bored very quickly, because it’s the intensive research and data analysis part of my job that I enjoy the most….yes, I’m a total nerd.
- If everyone could see the future then I’d lose the advantages of my knowledge, experience, and research methodology.
The truth is – it’s the hidden nature of the best investment opportunities that gives the most experienced and hard-working people a massive advantage.
Here is what I expect to see from the property market this year…
Where Not To Invest In 2015
I’ll be instructing all of my clients to steer clear of Canberra in 2015. Canberra has not, and will not, keep up with the other capital cities this year. The Canberra unit market in particular is in a steady decline, and there is news of down-sizing in the public service sector which is not going to help the overall market. Canberra will recover eventually of course, but I would stay away this year and probably next year too.
Hobart is slowly and steadily heading in the right direction. However, I will not be sourcing properties in Hobart for my clients this year as I don’t believe the price growth will be high enough to meet our strict capital growth guidelines.
Darwin is a bit of a ‘wild-card’ in my opinion. While it has one of the highest price growth rates, and highest rental yields among the capital cities, I would be cautious and concerned of the impact on the local economy when construction of the Ichthys Gas Project is complete. Darwin is also showing an oversupply of inner-city units.
It’s not all bad news for the Northern Territory, because Katherine has some really good potential. There are two noteworthy infrastructure projects (and we all know that capital growth just loves new infrastructure projects!) that will benefit the area: (1) the further stages of the Ord River Irrigation Scheme across the border in Western Australia, and (2) the nearby RAAF Base is being extended.
Gladstone, Emerald & Mackay
I’ll also be telling my clients to avoid Gladstone, Emerald & Mackay in 2015. Main Street Group predicted a downturn in these areas back in early 2013, and these areas have indeed been hurt by the reduction in coal mining in the region.
So where will I be encouraging my clients to invest this year?
All of our research points to the whole South-East Queensland Region (Brisbane, Sunshine Coast and Gold Coast) being Australia’s best market heading into 2015.
Every property expert, experienced investor, developer and research analyst I have spoken to expects Brisbane to continue the upward trend we predicted and saw in 2014. Our research in 2013 predicted that Brisbane markets would recover in 2014, and I would expect that rise in prices to continue in 2015.
I am currently sourcing properties for clients on the Northside of Brisbane in particular, the Moreton Bay Region, and Logan City on the Southside. I will be instructing clients to stay away from inner-city units in Brisbane because of over-supply.
The Gold Coast has been one of the worst performing markets over the past few years, mainly due to the downturn in tourism dollars after the GFC, and a massive oversupply of high-rise apartments, but I expect the Gold Coast to be one of the best performers in 2015 and 2016.
The new Gold Coast Hospital and a $1.8 billion passenger rail project have supplied much needed jobs for the region, and Pacific Fair (shopping centre) is in the middle of a $670 million expansion. Let’s not forget the Gold Coast will be hosting the Commonwealth Games in 2018, and the fact a $500 million athlete’s village will be constructed for the games. Also, Chinese developer Ridong are building a $1.8 billion luxury hotel and a decision is pending on the proposed $7 billion mega-resort, cruise ship terminal, and casino on The Broadwater and Wave Break Island.
Folks as I’ve said many times before: capital growth LOVES new infrastructure projects!
The Sunshine Coast has $15 billion in investment driving it forward as an ever-expanding regional city. Major infrastructure projects such as a $100 million Woolworths development in Sippy Downs Town Centre, the $2 billion Sunshine Coast University Hospital, and the Sunshine Coast Airport Expansion are just a tiny slice of the action that is taking place on the Sunshine Coast right now.
Have I mentioned how important Infrastructure Projects are to Capital Growth yet?
Toowoomba, Cairns & Townsville
I am also very interested in Toowoomba and Cairns this year, and to a lesser extent Townsville. Both Toowoomba and Cairns have substantial growth drivers pointing towards good capital growth. Townsville has been very slow over the past two years but should see some improvement in 2015.
If you would like to know the exact suburbs and streets in Brisbane, Gold Coast & Sunshine Coast that are going to outperform the rest of the country in capital growth in 2015, read about our Property Concierge Service then give us a call on (07) 3510 2122.
The other states
The Sydney metropolitan area will continue to see good growth in 2015. Most of our research is pointing to the more affordable ‘city fringe’ areas having above average capital growth. We are also expecting excellent growth potential in areas further afield from Sydney; such as the Central Coast, Tamworth and Port Macquarie to the north and Wollongong to the south.
Adelaide is booming! Isn’t it? Well, maybe not booming, but it is definitely building to something big with growing sales levels right across the city. Just like Sydney, the more affordable ‘fringe’ areas stand out as potential performers in 2015. We also have our eye on regional areas in South Australia such as Port Augusta and Mt Gambia. Watch this space!
We have seen property prices in Melbourne build momentum over the past two to three years, and overall Melbourne has delivered some steady growth in this time. As we are seeing in both Sydney and Adelaide, the areas picking up steam are now in the outer areas, rather than the city centre. Monash City is an area I am expecting to see good growth in 2015.
The regional Victoria areas of Ballarat and Bendigo (and surrounds) will also see good growth in 2015 thanks to, you guessed it, new infrastructure! There are major infrastructure projects in the area nearing completion, such as the $5 billion Regional Rail Link. Good news for investors!
Last but certainly not least we have Perth. It’s no secret the Perth market slowed down in 2014, but all of our research suggests there will be some good price growth in certain WA markets in 2015. Areas to the south of Perth such as Mandurah and Bunbury are on our list of ‘ones to watch’ this year. Busselton, also to the South of Perth, was number one for price growth in 2014 and I believe the growth in Busselton will continue in 2015.
Which suburbs and which streets?
Above we’ve given you an overview of where and why we are going to invest in certain suburbs across Australia this year. These are general recommendations, but there is an enormous amount of data and extensive research that has gone into finding the best properties, in the best areas, that are going to provide the best chance of capital growth for our clients.
In fact our research has identified specific suburbs, specific streets, and even specific properties that represent the absolute best investment opportunities within the broad growth areas outlined above.
What we do for our clients is scour these suburbs, streets, and pockets to find a property that not only represents a great investment but fits with their particular circumstances and overall financial goals.
If you’re looking for an investment property in 2015, read about out Property Concierge Service here, then give us a call today on (07) 3510 2122 and let’s get started.
I guarantee that it’s easier, and much less painful than you think.
Andrew Clough | (07) 3510 2122