INVESTORS in search of properties that will deliver high capital growth in the years ahead may find southeast Queensland and certain fringe suburbs of Melbourne safe bets.
These regions accounted for the bulk of high growth property markets in Hotspotting.com.au’s latest Top 10 Best Buys report, which forecasts the 10 best locations for property investors seeking capital growth.
Queensland locations in the report included the Gold Coast, Ipswich and Logan, while the Melbourne regions included the City of Casey and Epping.
Just one NSW location was nominated: Wagga Wagga.
No property markets in South Australia or Western Australia made the cut, but Tasmania had a surprising addition in Hobart.
The report said these locations have “identifiable drivers of demand for real estate, which will place pressure on prices and rents … we expect them to show growth not only in 2016 but well beyond.”
GOLD COAST, QLD
Billions is being spent on infrastructure across the Gold Coast in the lead up to the Commonwealth Games in April 2018, which is expected to bring around 690,000 visitors to the city.
Ongoing projects include the $150 million development of the light rail network and a $42 million aquatic centre.
These and other developments have helped create 15,000 jobs over the past year, adding to the city’s already strong population growth. The Gold Coast’s population is projected to grow by 133,800 people in the decade — the largest population growth in Queensland.
“There will be (property) price growth, especially in the genuine residential suburbs,” the Hotspotting report said. Much of this growth is expected to occur in suburbs along the northern corridor between Helensvale and Brisbane.
Logan City’s combination of affordable property prices, good infrastructure and proximity to job hubs could boost home values.
Many of the region’s older suburbs have been revitalised through urban renewal projects and Logan is already one of the fastest growing municipalities in Australia.
It is being expanded through a $4 billion masterplanned housing community on Waterford Tamborine Road, which will result in 17,000 new dwellings.
There is also a $600 million project to redevelop Jeta Gardens Retirement Village, approved by local council in 2014. The village currently injects $10 million into the local economy annually, but this is set to rise to $100 million.
Tasmania’s economy is rising on the back of big improvements in tourism and business investment after years of lacklustre economic activity.
The property market has started to respond, with sales activity steadily improving since 2012.
Hotspotting pointed out that Hobart presents an attractive package to investors, with high rental returns and prices considerably more affordable than on the mainland.
The city’s most popular suburbs, which include Claremont, Glenorchy, Howrah, Kingston and Moonah, have median prices under $400,000.
The Epping region, on the northern fringe of Melbourne, is due a number of improvements which are likely to bring new people to the suburb and boost property prices, Hotspotting said.
These include the upgrade of the Western Ring Road, further expansion of commuter train services in the region and the relocation of Melbourne’s fruit and vegetable markets to Epping. There is also a new business park in development at Mickleham, which will create 20,000 jobs.
CITY OF CASEY, VIC
The property market in the City of Casey, in Melbourne’s southeast, has been growing, with many suburbs attracting rising sales activity.
The area’s rising population demands new housing estates and the State Government’s long-term planning document — Plan Melbourne — has identified several suburbs in the Local Government Area to play a major role in service delivery and creating employment.
An upturn in commercial development activity began in 2015 with five major projects creating 3,730 new jobs. The planned Berwick Health, Innovation and Education Precinct is expected to provide an additional 9,000 new jobs.
THE REST OF THE TOP 10:
Moreton Bay, Qld: The region offers affordable housing as well as good rail and road links to Brisbane and the Sunshine Coast, making it a strategically placed property market.
Sunshine Coast, Qld: Billions of dollars in service upgrades, including the development of a $5 billion medical hub, are driving an influx of new jobs to the area, in the process, boosting demand for housing.
Sunshine precinct, Vic: Sunshine and surrounds are destined to become a major regional hub within the Melbourne metropolitan area. Extensive investment in infrastructure and amenities will drive demand for property and pull up prices.
Wagga Wagga, NSW: The high number of first-home buyers taking advantage of affordable properties in the area bodes well for Wagga Wagga’s capital growth prospects, the Hotspotting report said. Army and air force bases are expanding in the area, while education, health and other community services are being upgraded.
Ipswich, Qld: A report by the Department of Infrastructure and Transport forecast 56,000 jobs will be created in Ipswich’s central suburbs by 2026. The jobs growth, coupled with affordable prices, will fuel demand for housing, Hotspotting said.
Originally Published On: http://www.heraldsun.com.au/
These are the top 3 spots to bag a bargain in Brisbane: Ryder
Property analyst Terry Ryder has picked three spots to invest in Brisbane. Picture: Richard Walker.Source:News Corp Australia
WANT to know where to invest in Brisbane that’s both affordable and offers the prospect of price growth? Look no further…
THERE are only three areas in Greater Brisbane that offer affordable real estate with growth potential, according to property analyst Terry Ryder.
The founder of Hotspotting.com.au has identified three precincts where there are plenty of houses well below the median Brisbane house price of around $530,000, close to transport links, shopping and jobs nodes, and with median rental yields in the 5 to 5.5 per cent range.
Here they are:
These suburbs are at the eastern fringe of the Ipswich local government area — the part closest to Brisbane, the motorway and the train line.
They are also close to the Springfield masterplanned community, which has an array of modern facilities, including university campus, hospital and commercial-retail precincts.
“There are numerous big shopping centres and major employment nodes nearby, with the recently announced $5 billion Defence vehicle contract focused on this precinct as a major new jobs creator,” Mr Ryder said.
2. Eagleby-Beenleigh-Woodridge, Logan
Mr Ryder said these older suburbs in Logan had median house prices in the $300,000s and were clustered around the train line and the Pacific Motorway, both of which link central Brisbane to the Gold Coast.
“This is also where there is an impressive shopping offering, including major bulky goods retail, and well-established infrastructure like schools and medical facilities (as well as a surprising number of golf courses).
3. Moreton Bay
The suburbs of Beachmere, Burpengary and Upper Caboolture have experienced double-digit growth in their median house prices in the past year, according to Mr Ryder.
They are all close to major road and rail links, but aren’t as expensive as North Lakes has become.
Even in the Redcliffe Peninsula, where most of the water-focused suburbs are, the median house price is only in the $400,000s.
And the Peninsula now has rail links to central Brisbane, making it an even more appealing prospect.
Bernard Salt says Moreton Bay Region has exciting future ahead
SOCIAL media might have blindsided Bernard Salt with the fallout from his now infamous “smashed avo” article, but numbers have never caught him by surprise.
And he’s not surprised by the trends in the Moreton Bay Region towards a positive economic and social evolution.
The futurist launched the 2018 Moreton Bay Region Business Conference Series at Dolphin Stadium in an optimistic keynote address about our “growing, diverse and aspirational” region.
“Moreton Bay has become a substantial economic force in its own right, with a Gross Regional Product of $17.3 billion,” Bernard told the audience.
“We’ve seen a number of big picture, gutsy projects undertaken to change this region’s future and fortunes – particularly the university precinct and delivery of the Moreton Bay Rail Link (Redcliffe Peninsula Line). These lay the foundations for future prosperity – the university in particular is an essential gamechanger for your economy.
“Moreton Bay must remain flexible to future-proof local job opportunities; contrary to the national trend there has been only modest job growth here in the professional services sector, but I expect the opening of the university in Petrie to correct this.
“Migration and knowledge work underpin job opportunities in Moreton Bay, so expect population growth and multiculturalism to continue to intensify across the region over the next 10-15 years.”
But his rosy forecasts came with a blunt warning about the need to address congestion and housing affordability now.
“Moreton Bay will be home to hundreds of thousands more people in the decades ahead, so you will need more affordable housing and it will need to be a competitive product,” he said. “That means providing access to a diverse range of lifestyle options from high-rise to low-rise housing, McMansions and townhouses.”
Former Australian Prime Minister Julia Gillard is the guest speaker at the next Moreton Bay Region Business Conference Series event on May 25 at the Eatons Hill Hotel. For more information or to buy tickets, visit businessmoretonbayregion.com.au
MORETON BAY BY NUMBERS
Gross Regional Product: $17.3 billion
Current Population: 438,000
Population by 2050: 700,000
Biggest jobs growth: Strathpine, Brendale, Caboolture, Mango Hill and North Lakes
Number of businesses: 25,000, which is the sixth highest for a local government area in Australia
■ The fastest-growing age group during the next 10 years will be 35-39
■ North Lakes is Queensland’s fastest-growing area (2016 ABS census)
■ Top five nationalities are United Kingdom, New Zealand, China, India and Philippines
Property tax hikes will hit economy hard
The state government’s planned property tax increases risk wiping the state off the global investment map, warns Chris Mountford,
executive director of Property Council Queensland.Kevin Farmer
THE state government’s planned property tax increases, due to come into effect on July 1, risk wiping the state off the global investment map.
As the government begins work on the State Budget, the Property Council is ramping up efforts to highlight the hidden effects of the tax hikes.
These tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact on every Queenslander.
With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time.
Election campaign costings, released in the days prior to the November 2017 state election, revealed the government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.
Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from July 1.
The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.
The end result of this decision will be higher business rents, higher costs for new homes and damage to Queensland’s reputation as an investment destination.
Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.
New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.
We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.
The Property Council is calling for the government to abandon the tax increases and commit to review and modernise Queensland’s property tax framework.
Our current land tax thresholds haven’t been changed in a decade, leading to significant bracket creep as property values have increased dramatically.
We need a simpler, fairer and more attractive property tax system to unlock investment and create jobs.
An all-encompassing review of Queensland’s outdated thresholds and property tax rates needs to be undertaken to put Queensland back on the investment map.
Chris Mountford is executive director of Property Council Queensland.
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