You can find the original article here.

When it comes to property investment, one of the key decisions is whether to focus on metropolitan or regional markets. While both have merits, understanding each other’s unique strengths and challenges can help investors make a decision that is aligned with their goals, budget, and risk appetite.

Hotspotting General Manager, Tim Graham, said just a few years ago the regional market was not on the radar of most investors, although that is no longer the case.

“Our regions have undergone significant price growth since the start of the pandemic and with people continuing to move to the regions seeking out a more affordable lifestyle while they work remotely, those property markets are now in demand,” he affirms.

“In Hotspotting’s recent National Top 10 Best Buys report, five out of the ten top local government areas (LGAs) were in regional areas.”

When it comes to choosing an investment location, it’s important to look at which location has all the right fundamentals in place for price growth, whether that be a metropolitan or regional market.

Below are some of the pros and cons investors should weigh up.

Metropolitan markets – Pros and Cons

Regional markets – Pros and Cons

Mr Graham mentioned that often, budget was a deciding factor for where to invest, and regional locations often gave buyers more “bang for their buck.”

“In our experience, entry costs play a significant role in determining which markets investors can access,” he said.

“Capital cities may offer a better fit for those with higher budgets. However, regional areas can provide excellent returns for those with tighter budgets, and we’ve seen significant growth potential in select regional locations across Australia.”

Tim Graham, Hotspotting

No matter where investors decide to buy and their budget, Mr Graham said it was essential to use a data-driven approach.

“Whether evaluating metropolitan or regional locations, we always rely on our EMPIRICAL formula, a data-driven approach, designed to identify areas with long-term growth potential while minimising risk,” he affirms.

The EMPIRICAL formula

• Economy: A strong, diverse economy is essential.
• Market size: A minimum of 50 house sales in the past 12 months.
• Population: The LGA ideally should have a minimum population of 15,000.
• Infrastructure: Existing amenities must be robust, with evidence of major new projects.
• Rental market: Low vacancies are crucial, as they support upward pressure on rents.
• Increasing employment opportunities: Areas with job growth.
• Capital growth potential: A location must have the potential for capital growth within five years.
• Affordability: Locations should have median house prices below $700,000.
• Low risk: Avoid volatile markets that present high risk to consumers.

“Whether you’re looking at a bustling capital city or a promising regional hub, the best investment is one that aligns with your budget, goals, and risk tolerance,” Mr Graham said.

“By considering the pros and cons of each market type and focusing on long-term growth, investors can make informed decisions that support their financial success.”

You can see the original article here.

You can find the original article here.

Three of Australia’s capital cities have reported significant price growth and increased sales activity recently, while the country’s underperforming markets continue to stagnate further.

Hotspotting’s Price Predictor Index (PPI) for spring 2024 has revealed that Brisbane, Adelaide and Perth are reporting extraordinary price growth over the spring selling season, with Melbourne and Hobart’s markets falling to the wayside.

You can read the original article here

Home values are languishing below their peaks in a string of Perth suburbs and country towns despite the number of markets recording a million-dollar median value reaching a record high.

The range of historic peaks was wide, with some regional WA markets still below highs from the mining boom of the mid-2000s, and some just starting to slip from record highs reached this year, according to exclusive analysis by CoreLogic.

There were 38 house markets in Western Australia where values are below their record highs.

In Perth’s metropolitan region, North Dandalup was 17.6 per cent below the peak it reached in February 2007. The median house value has also slumped in Peppermint Grove, where it is 6.2 per cent below the peak it reached in July 2008.

 

North Coogee was the only other million-dollar Perth suburb to remain below its peak in June 2024.

But the biggest falls have been in WA’s country towns, notably our mining outposts, with South Hedland, Newman and Port Hedland in the Pilbara all down about 50 per cent from their peak in 2012.

The Kimberley towns of Broome and Cable Beach also remain below the heady peaks they reached in 2007.

CoreLogic head of research Eliza Owen said of the 559 house and unit markets measured across WA at the suburb level, 60 were down from historic highs. 

You can read the original article here.

• Transaction numbers provide better insights into future market trends than changes in median house prices.
• Brisbane, Adelaide, and regional areas are showing strong signs of growth.
• Hobart, Melbourne, and parts of Tasmania continue to struggle.

In his latest contribution to The Property Tribune, Hotspotting general manager, Tim Graham discusses the anticipated property price growth in Australia’s smaller capital cities and regional towns.

Australia’s smaller capital cities and regional towns are forecast to be the property price growth winners for the remainder of 2024.

Analysis by Hotspotting of transaction numbers throughout Australia for the Spring 2024 Price Predictor Index (PPI), has revealed the markets primed for future growth.
Hotspotting General Manager, Tim Graham, said transaction numbers were a good indicator of how a property market was tracking.

“Changes in sales volumes are far more useful than changes in median house price to determine where prices are poised to rise,”

“History shows there is a correlation between sales volumes and price movements: the number of sales changes first and prices react – with a time lag.”

Tim Graham, Hotspotting

Mr Graham said changes in median house prices were more reflective of what had previously happened in the market, not of what was to come.

The transaction number analysis found buyers searched for affordable markets and as a result unit transactions had increased during the June quarter.

The winners

Brisbane

While earlier in 2024 transaction numbers were down as a result of a shortage of properties for sale, listings have increased since then and there has been a notable uplift in sales volumes in the June Quarter. Units were selling well and now account for more than half of sales in the Brisbane City LGA. The report found 44% of house markets had rising sales numbers and 53% of unit markets.

Regional Queensland

Of the Queensland markets outside Brisbane, 64% recorded positive sales patterns. That was a common pattern across most Regional Queensland cities and municipalities including the Gold Coast, the Sunshine Coast, Toowoomba, Rockhampton, Mackay, Gladstone, Bundaberg, Hervey Bay, Townsville and Cairns – all of which have busy (or, in some cases, frenzied) property markets.

Adelaide

Adelaide continues to feature as one of the nation’s growth leaders and sales in the June 2024 quarter were the highest levels in Greater Adelaide since mid-2022. This represented a 25% increase on the March Quarter and was 10% higher than the same time in 2023. The Greater Adelaide area had standout markets across all price ranges, including affordable municipalities of Playford and Salisbury, middle market areas Marion and West Torrens, and the upmarket Unley and Holdfast LGAs.

Regional South Australia

This is the out-performer that often flies under the radar. Sales levels in Regional SA were the highest since the 2021 peak. Sales volumes in the June 2024 Quarter were 23% better than the March Quarter and 25% up on the same time last year. The real stars in 2024 were the Iron Triangle towns of Whyalla, Port Pirie and Port Augusta.

Perth

The Perth boom remains strong, amid widespread fears (which we share and continue to warn about) that this market is overheated and that buyers are not doing appropriate due diligence. Nevertheless, sales volumes were still elevated and many of the Perth LGAs had high sales volumes, notably inner-city markets where affordable units dominated the real estate landscape.

The Losers

Hobart

Hobart is the weakest performer on house price growth. There is a “glimmer of recovery” but it remains well short of the bustling environment evident elsewhere in Australia. Sales volumes in the Greater Hobart area improved in the June Quarter, compared to three months earlier, but remain at similar levels as the same time last year – and still well below the peaks in 2020 and 2021, when Hobart was a national leader on sales activity and price growth.

Regional Tasmania

There are some signs of recovery, but Regional Tasmania continues to lag the performance seen elsewhere in Australia. Around half of locations across Regional Tasmania have positive rankings in terms of transaction numbers which represents a solid position but well short of a strong one.

Melbourne

Melbourne’s anaemic market has prevailed over the past two years and persists. There remains a high level of uncertainty in Greater Melbourne markets, despite improvement in sales volumes overall in the latest quarter. There are some positive sectors, notably outer-ring houses and near-city units, but overall Melbourne is an under-achiever, not helped by the Victoria State Government’s hostility to investors.

Darwin

Darwin continued to build on the signs of revival detected earlier this year with increased buyer demand in the outer-ring precincts of the Darwin region. But buyer demand still remains well below the last market peak in 2021-2022.

Read the original article here

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Property market prices may still be rising but there remains a number of affordable opportunities for investors looking for upside capital growth potential.

According to Hotspotting’s Top Cheapies with Prospects research, there are five city and five regional areas where it is still possible to invest in property priced between $300,000 and $600,000. 

Hotspotting Director, Terry Ryder, said just because a location had been given the  moniker of “cheapie” didn’t mean it was an inferior investment area.  

“There is a huge difference between a cheap area that just doesn’t have much going  for it from an economic point of view, and locations such as these ones, where there  is rising sales activity, new major infrastructure under way, proximity to jobs’ nodes,  as well as affordability,” Mr Ryder said.  

“Those seeking to buy in a price range between $400,000 to $600,000 can still find  possibilities for houses in the cheaper areas of some of our capital cities – and,  increasingly, investors who are aware of the current trends can find good options in  the market for units and townhouses.” 

For investors looking for good buys in the city, houses in Darwin, the City of Melton in Victoria and the City of Salisbury in South Australia all offer solid opportunities.

Those after units should turn to the City of Perth and the Inner Brisbane Precinct.

Mr Ryder said Darwin was an unusual selection in the top five city cheapies as it was generally not on the radar of many property investors. 

“Darwin very rarely makes top property investment location lists, but the economic situation in the Northern Territory capital has changed that,” he said.  

“Not only does Darwin have serious housing affordability with median house prices in the $300,000 to $400,000 price range, but it also has excellent yields and myriad massive infrastructure projects. 

“On top of that, about half of the suburbs in the City of Darwin are classified as  positive with rising transactions being recorded over the past year or more.” 

Hotspotting General Manager, Tim Graham, said investors had increasingly  recognised the opportunities available in regional areas over the past decade in  particular. 

“There continues to be excellent options in regional Australia where buyers can  access houses between $400,00 and $600,000, which also have good prospects for  future capital growth,” Mr Graham said. 

“Our research shows that investors can buy in regional areas at affordable prices,  achieve above-average rental yields, and look forward to good price growth.” 

Mr Graham said the City of Geraldton in Western Australia had featured on the top  five regional cheapies list for more than a year because it continues to offer solid  opportunities for investors.  

“Even though the region has recorded price growth of late it remains possible to  purchase a house in the area between $300,000 and $400,000,” he said. 

“Plus, recent research showed that Geraldton – located about 400 kilometres north  of Perth – had 17 of the top 50 suburbs in WA for property value growth.”

Read Original Article Here

In his latest contribution to The Property Tribune, Tim Graham, general manager of real estate data company Hotspotting, highlights the locations in Australia experiencing strong property price growth.

The pace of property price growth may be slowing in some cities, but a number of Australia’s COVID-19 boom stars are already gaining a second wind.

Analysis by Hotspotting has revealed the locations which experienced extremely high property price growth during Covid that are once again gaining momentum.

Hotspotting General Manager, Tim Graham, said there was plenty of steam left in the market and investors should not discount the potential for further growth in locations that had already performed well.

“Many locations across Australia were at the peak of their up-cycles in 2021 and subsided notably in 2022 and part of 2023,” Mr Graham said.

“We’ve analysed every suburb in Australia for our latest Winter Price Predictor Index and what we’ve come up with is a list of locations which are now getting a second wind and are primed for further price growth.”

Mr Graham said activity was rising in the first part of 2024 for suburbs in:

• Sunshine Coast, QLD
• Albury, NSW
• Hervey Bay, QLD
• Geelong, Victoria
• Byron Bay, NSW
• Ballarat, VIC
• Mornington Peninsula, VIC
• Canberra, ACT (unit market)

“The Sunshine Coast recorded three years of stellar growth up to 2022 with the top-end suburbs doubling in value in just three years,” Mr Graham said.

“I know it can be hard to believe it has any more to give but our data analysis shows the beginnings of a revival. We predict it is about to take off again.”

Mr Graham said Byron Bay, which he believed overshot its true value during Covid by doubling in two years, was now picking up pace again.

Weekly asking prices for Byron Bay 2481

“We can see evidence in the sales data of a pickup in activity and also the first signs of prices recovering,” he said.

The Mornington Peninsula local government area is also showing significant signs of recovery after having been a national star during the Covid boom. In the past five quarters, transaction numbers have been in the mid to high 800s with Hastings, Blairgowrie, and Balnarring recording increasing transaction numbers which are generally a precursor to price growth.

Albury and Lavington in the New South Wales/Victoria border town of Albury/Wodonga have so much potential that Hotspotting has named them in Australia’s National Top 50 Supercharged Suburbs list.

Weekly asking prices for Albury 2640

Suburbs on that list have the strongest growth patterns and are most likely to deliver future price growth.

“Albury is showing the early signs of revival, while the big three of Regional Victoria – Geelong, Bendigo and Ballarat – are all notable for consistent sales levels and appear to be gaining a second wind,” Mr Graham said.

Demand is still high in these mostly regional locations and with listings remaining extremely low, prices are rising.

“The Price Predictor Index for several years has charted the trend we call The Exodus to Affordable Lifestyle and our analysis suggests the demographic drift from the biggest capital cities is still well and truly evident.”

Read Original Article Here

Sales volumes are on the rise across a host of suburbs in NSW, however, demand in Western Australia might be starting to fall.

The Hotspotting Supercharged Suburbs report looked at suburbs that have seen rising sales volumes for the past four quarters.

New South Wales leads the charge with 26 suburbs making the cut, along with 10 suburbs in Victoria, six in South Australia, five in Queensland, and three in the ACT. 

This time last year, Western Australia had more than one-third of all supercharged suburbs, but failed to secure an entry this year.

Some of the top suburbs from NSW include Surry Hills, Woolloomooloo, Paddington, Darling Point, Bondi and Botany.

Top regional suburbs in NSW include Albury, Bomaderry, Brighton-le-Sands, Corrimal, Gregory Hills, Kurri Kurri, Lake Munmorah, Lavington, Nelson Bay, North Nowra, Oxley Park, Sanctuary Point, Sussex Inlet, Swansea, and Taree.

Hotspotting General Manager, Tim Graham, said the market resurgence in parts of Sydney and Regional NSW began last year, with solid activity being reported in a number of locations.

“We believe the top supercharged suburb in the nation is currently Surry Hills in Sydney City, which is indicative of a number of key trends in Australian real estate,” Mr Graham said. 

“Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon.

“Sales numbers have been trending sharply upwards, with the March 2024 quarter numbers double those in the March 2023 quarter.” 

He said the median unit price has increased 7.1 per cent and the median house price is up 21 per cent.

Rents are also growing strongly, up 14 per cent for units and 16 per cent for houses in the past year.

Hotspotting Director, Terry Ryder, said contrary to the negative market narrative currently prevalent about Melbourne, the Victorian capital city had a number of suburbs with rising sales activity and plenty of upside potential.

He said the top suburbs in Melbourne include Deer Park and Sydenham.

While in regional Victoria they include Bacchus Marsh, Ballarat East, Darley, Harkness, Kennington, Leopold, St Leonards, Torquay.

“The Melbourne market is poised for better price growth in 2024 than the previous two years,” Mr Ryder said. 

“The median house price grew only 3 per cent in the 12 months to May, but sales activity revived late in 2023 and early 2024, boosted by a solid economy and high population growth.

“Located less than 20 kilometres from the CBD, Deer Park has recorded five consecutive quarters of rising property sales, with housing affordability one of its calling cards for investors and homebuyers.”

Mr Graham said Adelaide and regional South Australia continued to be two of the nation’s most promising markets, including Glenelg.

He said Ascot Park, Flinders Park, Glenelg, Hove, and Morphettville in Adelaide were the best, along with Wallaroo.

“Adelaide sales activity is 8 per cent higher than a year earlier, despite a 12 per cent annual decline in listings of properties for sale,” he said. 

“Generally, the Adelaide market is displaying the consistency that has made it a national leader on price growth, with 31 per cent of its suburbs recording positive ratings in our latest research.

“Glenelg has recorded five consecutive quarters of rising sales volumes, with the suburb home to Adelaide’s most popular beach, which attracts visitors because of its historic jetty, waterfront cafes, restaurants, and boutiques.”

Across Brisbane, Bahrs Scrub and Macleay Island were popular, while Highfields, Kirkwood and Palmview were in demand regionally.

Mr Ryder said no locations in WA made the list and demand was showing signs of drying up.

“We continue to warn investors to be cautious in approaching the Perth market – too many buyers are acting in haste, paying well above the asking price to beat the competition without regard to quality or location,” he said. 

“Many will regret decisions made in haste amid the frenzy

“The latest sales volumes data suggests that the Perth market has passed its peak in terms of buyer activity and is unlikely to continue leading the nation on price growth –although the low level of listings of properties for sale is partly to blame.

“Our new analysis shows a significant drop-off in sales across Greater Perth in the past six months. 

“There are a number of other signals that the peak has been reached, or passed, in this market – including longer ‘days on market’ in some areas and price decline at the top end of the market.”

See original article here

This may be the only list where Qld is beaten by NSW this week, with new research naming 50 suburbs where prices are set to boom, with even SOO2 host Victoria turning up for this one.

The much anticipated Hotspotting Price Predictor Index (PPI) Winter Edition has been released, showing which suburbs are now ripe for price growth picks – thanks to steady increases in sales volumes over more than four consecutive quarters.

Hotspotting director Terry Ryder found that despite record prices being set across many states already, there’s much more to come with New South Wales’ suburbs making up half the top 50 list (26), compared to just five in Queensland.

The Sunshine State was beaten on the price predictor list by Victoria which had 10 suburbs with even South Australia pipping Queensland with six. The only non-state player in the top 50 was the Australian Capital Territory with three superchargers.

Mr Ryder said “history shows that there is a correlation between sales volumes and price movements: the number of sales changes first and then prices react – with a time lag”.

“This is true whether markets are rising or falling and means that investors can buy ahead of price growth, by finding locations where sales volumes are rising but prices have not yet moved.”

Queensland, which has seen some of the strongest pandemic-led growth in prices in the country, saw just five suburbs make the top 50 this time – two of which are in the Greater Brisbane region and among the cheapest places to buy property in the vicinity at present.

Bahrs Scrub in Logan in the Greater Brisbane region’s south has seen sales ramping up steadily from 21 a quarter, to 26, 30, 37 and 36 most recently. Macleay Island in the Redlands, also in the region’s south, is seeing sales spike higher from 27, to 42, 53, 42 and 58. The rest of Queensland’s top 50 superchargers were outside the Greater Capital region, led by Highfields in Toowoomba which had 60 sales in the last quarter compared to 38 more than a year ago, with the other two being Kirkwood in Gladstone and Palmview on the Sunshine Coast.

See the original article here

• Regional Victoria hasn't seen the price growth other regional markets have experienced, but that may soon change.
• Recent sales data points towards the possible start of a new cycle in regional Victoria.
• Subtstantial economic growth and employment opportunities set to bolster the attraction to locations such as Geelong.

Regional property markets still have plenty to offer investors despite almost three years of solid growth; it is also the more sensible option than jumping into long overheated Australian housing markets.

For 2024, I’m picking the regional Victorian property market as a solid performer and avoiding the recent hot favourite, Perth.

In justifying why Perth is no longer the flavour of the month, the reason behind Perth’s recent success can also explain why the regional Victorian property market is about to take off.

Why is Perth’s property market no longer my top pick?

I’d warn investors who are still looking at the Perth market to be wary that they are likely buying at the peak or in a declining market. Investors must look at the markets that will perform well, not those that have already taken off.

Perth is a classic example of that. Buyers are falling over themselves and paying over the odds to secure a piece of that market. Investors should no longer be buying in overheated markets like Perth, but targeting locations with credentials for long-term growth which may be at a current low point in the cycle.

How can this be determined?

The latest sales data indicates that the Perth market has reached its peak in terms of buyer activity and is not likely to continue leading the nation in price growth. The rate of growth is expected to slow down as the year progresses.

A new analysis of sales activity has shown a significant decrease in activity across Greater Perth after three years of strong performance. The market was previously dominated by rising, recovering and consistent suburbs, with no declining markets.

Currently, Hotspotting’s analysis found that only 15 suburbs are classified as rising markets out of 237. Nine months ago, the majority of suburbs had positive classifications, with only three declining ones.

This confirms previous warnings that now is a risky time for investors to buy in the Perth market. Although sales activity has decreased, there are still enough buyers in the market to drive up prices, fueled by media coverage claiming that the boom will continue for several more years.

However, many buyers are making hasty decisions without considering important factors like location, pricing, and due diligence, and may regret their choices later. The sales volume data shows a significant decline in the March 2024 quarter, down by 25% compared to the previous quarter.

These are some exceptions in the Greater Perth market, which has likely reached its peak and will not continue leading the nation in price growth much longer. Regional areas such as Bunbury and Geraldton, have good growth prospects and offer affordability and high rental yields. These markets are supported by strong regional economies.

Early signs of growth for regional Victoria

The market that now meets the criteria for long-term growth which may be at a low point in the property cycle is regional Victoria.

In simple terms, the markets in regional Victoria are situated where Perth was three years ago before prices started to soar.

If you are buying strategically for capital growth, it is a market that is underpinned by one of Australia’s strongest state economies and with strong population growth expected to continue, so too is demand for real estate.

While regional Victoria hasn’t experienced the price growth of other regional markets in the past year, Hotspotting’s latest Top 5 Regional Victorian Hotspots report has identified a big leap in buyer activity across recent months – often a precursor to future property price growth.

Vacancy rates also remain very low and rents are rising.

Top 5 regional Victorian housing markets

1. City of Greater Geelong
2. Mitchell Shire
3. City of Ballarat
4. Albury/Wodonga
5. Latrobe Valley

Geelong hailed as a prime opportunity

A rapidly growing economy is one driver behind why Geelong is shaping up to be a great place to invest.

It has had $5.5 billion in recent infrastructure expenditure and a projected $17.4 billion in major investments to come, which fueled job creation and therefore demand for housing.

Geelong’s population and gross regional product growth are above the national average, and the city is in the midst of a major urban expansion plan that will cater to 110,000 new residents and create 35,000 jobs by 2050.

Despite the 2026 Commonwealth Games cancellation, Geelong is still expected to receive planned sporting infrastructure projects. further enhancing the attractiveness of Geelong as both a place to be and invest.

First home buyer activity in the city is also picking up across certain areas of Geelong due to the availability of vacant land.

Employment opportunities to pick up

Hotspotting’s latest report also revealed a growing number of major private firms and international companies choosing Geelong as a place to call home.

In recent decades, the Transport Accident Commission shifted headquarters there, with other major companies such as KPMG, Hanwha, Petstock, Cotton On, Amazon, and Australia Post all setting up shop at Avalon Airport’s industrial and business precinct in 2023.

The airport, more generally, is also expected to be the centre of attention in the years to come, with significant plans on the way.

Watch Tim's Interview on TickerNews

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New analysis from Hotspotting found that regional Queensland has nabbed the “lion’s share” of high cash flow hotspots in Australia.

Read original article here.

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Queensland has the ‘lion’s share’ of top spots for investors in Australia, with four suburbs offering affordability, cash flow, and capital growth potential.

And it is the regions that have come out on top, according to the Hotspotting National Top 10 Positive Cashflow Hotspots report.

Hotspotting general manager Tim Graham said regional Queensland’s strong showing in the top 10 was testament to its affordability and the variety of significant major infrastructure projects under way.

“Some areas, such as Gladstone, had previously been overly-reliant on the resources sector, which had a positive or negative impact on its property market,” he said.

“However, today, its economy has a range of smaller projects that are spread more evenly across a range of sectors, which creates a more stable residential property market. “Rockhampton also has not been resting on its laurels and has billions of dollars of major infrastructure projects under way, including transport, defence, resources and energy.

“Plus, its CBD has undergone a revitalisation project as well.”

The analysis looked at several key criteria to source suburbs for investors, finding the top 10 locations with yields above six per cent as well as capital growth potential.

It also looked for suburbs and locations with strong and diverse economies, market size, population, infrastructure, tight rental markets, employment opportunities, capital growth, affordability, and that were considered low risk.

Read the original article here:

Regional Victoria’s housing market is still kicking goals

The Property Tribune
02 February 2024, 9:31 am

• Locations such as Geelong and Bendigo are still performing well.
• Affordable regional cities that are well connected to Melbourne by road or rail are seeing good results.
• Investors may be deterred by the latest changes being made to the regulatory environment.

In his second contribution to The Property Tribune, Hotspotting general manager, Tim Graham discusses the regional Victorian real estate market. 

Regional Victoria’s property market continues to perform well, with many locations predicted for further price growth in 2024 off the back of solid transaction numbers.

Research by Hotspotting shows that two-thirds of locations are now recording solid transaction numbers, which is a sign of good buyer demand and can lead to further price growth.

Hotspotting general manager, Tim Graham, says while values are not rising as dramatically as the capital city has recently, locations such as Geelong continue to power along.

Weekly asking prices for 3220, including Geelong

“Geelong continues to be a market leader in Victoria, with most of its suburbs on board with the state’s recovery, led by locations such as Armstrong Creek and Charlemont.”

Tim Graham, Hotspotting

Weekly asking prices for 3550, including Bendigo

“Bendigo has an equally positive market, with strong buyer demand for affordable suburbs like Eaglehawk, which has a median house price of $515,000 – a price level that’s impossible to find in the Greater Melbourne area.”

Weekly asking prices for Melbourne

Graham said Ballarat was a little less “bullish” but, that was to be expected as it has experienced substantial growth in the past five years.

“The Cardinia LGA on the south-eastern fringe of Greater Melbourne has good momentum, led by the towns of Officer and Pakenham.

“And the Mitchell LGA, on the northern outskirts of Greater Melbourne, continues to attract buyers from the capital city.”

“Overall, these locations provide affordable options in strong, growing regional cities which are well-connected to Melbourne by road and rail.”

Graham said while the market is performing well, he feared more investors will leave the Victorian market in the coming months, as the State Government continues to treat property as a “cash cow” to pay down its Covid debts.

From 1 January 2024, the tax-free threshold on investment properties was reduced from $300,000 to $50,000, and the rate will increase by 0.1% of the value over $300,000.

There will also be a temporary fixed charge for the tax eligible of $500 for land worth $100,000 or below, while more expensive landholding will incur a $975 fixed fee.

From January 1, 2025, a 7.5% levy, will be imposed on properties listed on short-stay accommodation platforms.

“These new fees and charges may help the State Government reduce its bottom line, but effectively they are also making the housing crisis worse but discouraging investors who typically provide the majority of rental properties in Australia,” said Graham.

“We’ve already heard of investors selling up. They are sick of all the additional taxes and charges. Those who retain their properties are also battling high interest rates and those costs will inevitably end up being passed onto renters.”

Find the original article here

Perth’s property market momentum has slowed, while Sydney, Melbourne and Brisbane’s are on the rise, according to the Hotspotting Price Predictor Index (PPI) for Summer 2023. 

As per the PropTrack Home Price Index November 2023 figures, Perth’s home price recorded the highest annual growth at 12.76%, pushing the median values of Perth homes to $622,000.

Home Price Growth – Annual PropTrack Home Price Index

Hotspotting director, Terry Ryder, said although Perth will finish off 2023 as the best capital city price growth performer, its market momentum stumbled over the past quarter.

“The WA capital has been our strongest market for the past year and a growth market for longer, but this survey finds the first signs of slowdown,” said Ryder.

Perth has stellar 2023

Throughout the year, Perth’s real estate market has demonstrated remarkable resilience even with the significant obstacles of high interest rates, supply issues, and builders going bust.

Earlier in the year, Ryder pointed to Gosnells, located roughly 20 kilometres from Perth CBD, as a particularly strong location due to its low price point and strong sales activity.

Moreover, affordable homes in Dudley Park in Seville Grove were flying off the market in as little as three days.

As the race to snap up a property intensified, it is no wonder that by the end of September, Perth’s stock was at a drastically low level of fewer than 5,000 listings, a 30-year low.

However, November has seen a slight increase of available stock at just over 7,000, according to SQM research figures.

Perth’s available listings

Interstate investors also latched onto Western Australia’s relative affordability and strong fundamentals. From Q1 2022 to Q1 2023, property investment in WA increased from nine per cent to 32%.

REIWA CEO, Cath Hart, also noted that Perth was the only capital city to record moderate price growth over the financial year despite the medley of interest rate rises.

Melbourne to lead the charge

Nevertheless, Hotspotting’s latest data shows that only 54% of Perth’s suburbs have price momentum now compared to 79% three months ago.

“Perth has lost its position as a national growth leader according to our research – although it will take time before it shows up in the price data,” said Ryder.

Hotspotting general manager, Tim Graham, said Melbourne’s turnaround has been undeniable.

“Six months ago, we reported a glimmer of recovery, three months ago we recorded an emphatic revival and now Melbourne is the nation’s strongest market with 87% of suburbs having positive trends.”

Tim Graham, Hotspotting

“The upsurge is seen in most market sectors across the Greater Melbourne Area.”

Brisbane and Sydney are closely following Melbourne, at 85% and 84% of those cities’ suburbs recording positive rankings respectively.

Apartments gaining favour among buyers

Another key finding of the PPI survey was that unit markets were attracting more interest.

“Suburbs where apartments dominate the dwelling mix are among the most powerful markets in Australia,” said Graham.

Part of this could be attributed to a dearth of listings, leading to homebuyers and investors to turn their gaze to unit and strata properties, as seen in Perth.

“The National Top 100 list of Supercharged Suburbs includes 24 in Greater Sydney, of which half are locations dominated by units,” said Graham.

“Inner-city suburbs in Melbourne, Brisbane and Perth also feature prominently on this list.”

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Real estate analysis firm Hotspotting has revealed Australia’s top six regions for investors on the hunt for affordable properties that deliver on cash flow without sacrificing long-term value growth.

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The days of interstate migrants packing up and heading to the beach appear to have flatlined, with more and more buyers seeking out inland affordable regions to call home, according to new research and analysis.

The Hotspotting Exodus to Lifestyle – National Top 10 report for the next six months identified the top affordable lifestyle locations with the best upside potential.

The latest research has found a mix of affordable locations in every major state where buyers can purchase their next homes in the months ahead.

The report considered the combined power of the following property metrics:

• Rising sales activity, with potential for capital growth
• Plenty of houses at affordable prices
• Strong infrastructure, both existing and planned, and
• Proximity to major jobs nodes.

Hotspotting Director Terry Ryder said in a period where Australia had just recorded its highest population growth in two decades, many were opting for the bush rather than the beach for affordability and lifestyle reasons.

“Western Australia and Queensland continue to be national leaders in price growth, while the two biggest states on population – NSW and Victoria – continue to lose population through internal migration.

“The biggest part of that trend is people leaving our two biggest cities and moving to smaller cities or to regional areas.

That’s been happening in significant numbers for the past decade and was not caused by the COVID19 lockdowns, as some media reports have suggested.”

Hotspotting general manager Tim Graham said those cities were still growing because of overseas migrants coming into Australia and focusing on Sydney and Melbourne, but their growth rates are dragged down because of the number of residents leaving to move to other parts of the country.

“Queensland and WA are the biggest recipients of this internal migration and it’s why these two states have such consistently strong population growth rates,” Mr Graham said.

“And the latest population figures from the ABS show that the trend is continuing.

“Australians are on the move in search of a different lifestyle at an affordable price, enabled in large part by technology which has allowed more and more people to work remotely.”

Mr Ryder said population data showed all of the biggest growth areas in Australia over the past five years had been in the regions.

“That data showed that the fastest-growing locations among the 50 biggest cities in Australia in the past five years were the Warragul-Drouin region in Victoria, the Sunshine Coast in Queensland, Geelong in Victoria, Victor Harbor in South Australia, Busselton in Western Australia, Hervey Bay in Queensland, and Ballarat in Victoria – and the Gold Coast in Queensland.

“The common feature among most of these strong population growth areas is that they are regional cities within striking distance of a state capital city.

“The core message is that the ‘Exodus to Affordable Lifestyle’ trend continues and is likely to do so for the foreseeable future, as more and more Australians seek to escape the big, conges ted, expensive cities and find a better lifestyle in more affordable and more relaxed locations.”

Mr Graham said a standout was Shepparton, located two hours north of Melbourne and a thriving city at the heart of Australia’s food bowl.

“With its prime location near major rivers and highways, it serves as the commercial and manufacturing hub of the Goulburn Valley region, he said.

“The city’s strong agricultural industry – with 25 per cent of Victoria’s agricultural products being produced – is supported by efficient transportation links.

“Currently, Shepparton is investing $2 billion in transport upgrades and a major freight logistics centre and also focusing on renewable energy, with plans for a Renewable Energy Zone and multiple solar farms.”

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Buyers are swapping the beach for the bush when it comes to relocating to more affordable regional areas, new research reveals.

According to the Hotspotting Exodus to Lifestyle – National Top 10 report, inland regional cities and areas dominate the list of the most affordable locations.

Hotspotting Director Terry Ryder said in a period where Australia has just recorded its highest population growth in two decades, many are opting for the bush rather than the beach for affordability and lifestyle reasons. 

“Western Australia and Queensland continue to be national leaders in price growth, while the two biggest states on population – NSW and Victoria – continue to lose population through internal migration,” Mr Ryder said. 

“The biggest part of that trend is people leaving our two biggest cities and moving to smaller cities or to regional areas. 

“That’s been happening in significant numbers for the past decade and was not caused by the COVID19 lockdowns, as some media reports have suggested.”

The report considered the combined power of several property metrics including rising sales activity, with potential for capital growth, plenty of houses at affordable prices, strong infrastructure (existing and planned) and proximity to major jobs nodes.

Hotspotting General Manager Tim Graham said Sydney and Melbourne were still growing thanks to overseas migrants focusing on our two largest cities, but their growth rates had dropped due to the residents leaving to move to other parts of the country. 

“Queensland and WA are the biggest recipients of this internal migration and it’s why these two states have such consistently strong population growth rates,” Mr Graham said. 

“And the latest population figures from the ABS show that the trend is continuing. 

“Australians are on the move in search of a different lifestyle at an affordable price, enabled in large part by technology which has allowed more and more people to work remotely.” 

National Top 10 affordable lifestyle locations

Tamworth, NSW

Mr Ryder said Tamworth was a thriving regional hub in NSW’s Greater Northern region, undergoing significant growth thanks to major infrastructure projects and its reputation as an affordable and rural lifestyle destination. 

“Its strong economy, driven by industries such as agriculture and mining, is bolstered by the development of a new intermodal freight hub and plans for a university campus,” Mr Ryder said. 

“The city’s tourism and equine industries also contribute to its success, with the annual Tamworth Country Music Festival drawing visitors and its status as the national equine capital attracting investment.” 

Mr Ryder said the property market in Tamworth is robust, with a low vacancy rate and high rental yields making it appealing to investors, particularly in the unit market. 

“With support from federal and state politicians, the city is well-positioned to accommodate the growing trend of people moving from big cities in search of more affordable housing and a better quality of life,” he said. 

Shepparton, VIC

Mr Graham said Shepparton – located two hours north of Melbourne – was a thriving city at the heart of Australia’s food bowl. 

With its prime location near major rivers and highways, it serves as the commercial and manufacturing hub of the Goulburn Valley region, he said. 

“The city’s strong agricultural industry – with 25 per cent of Victoria’s agricultural products being produced – is supported by efficient transportation links,” Mr Graham said. 

“Currently, Shepparton is investing $2 billion in transport upgrades and a major freight logistics centre.” 

Mr Graham said the city is also focusing on renewable energy, with plans for a Renewable Energy Zone and multiple solar farms. 

“This is creating job opportunities and contributing to its economic growth,” he said. 

“Shepparton also offers affordable real estate and low vacancy rates, making it a favourable destination for investors.”

Yeppoon, QLD

Mr Ryder said that in recent years, the Yeppoon property market in coastal North Queensland has been experiencing a surge in both sales activity and demand, even amidst the pandemic. 

“This growth is expected to continue throughout 2022 and 2023, with overseas buyers also showing interest in the region,” he said. 

“The town is predicted to be a top beneficiary of the long-term trend of people moving to lifestyle locations. 

“But, despite this popularity, median house prices in Yeppoon and nearby suburbs remain affordable at around $500,000 to $600,000.” 

Mr Ryder said Yeppoon’s status as the principal seat in Livingstone Shire and its proximity to Rockhampton, along with diverse economy, including agriculture, construction, tourism, and resources, make it an attractive location for buyers. 

Gladstone, QLD

Mr Graham said Gladstone – a significant regional centre in Australia – is experiencing a positive turnaround from its turbulent past. 

Vacancy rates have decreased, rents and sales have risen, and house prices are on the upswing, he said. 

“This trend has persisted throughout the pandemic, even as many other areas of the country have seen declining property markets,” he said.

“The city has been recognised as a top-performing municipality and a rising market for both houses and units. 

“Gladstone’s growing popularity is also reflected in its ranking as one of the most desirable destinations for people moving within Australia, which is due to an array of factors, including various projects diversifying the economy and creating job opportunities.” 

Mr Graham said the city is emerging as a major clean energy hub, with numerous hydrogen projects and a multi-billion-dollar federal program backing its development. 

Toowoomba, QLD

Mr Ryder said Toowoomba is a rapidly developing regional city in Australia, with a growing economy and a significant presence in the national stage. 

Its large program of infrastructure development, including the privately developed Wellcamp Airport and its inclusion in the2032 Olympics, highlight its strategic importance, he said. 

“The city’s location near the Surat Basin’s mining and renewable energy resources, as well as its proximity to tourism, manufacturing, and agricultural industries in the Lockyer Valley, further contribute to its economic growth,” he said. 

“In addition, the $1.6 billion Second Range Crossing and the upcoming $31 billion Inland Rail Link solidify Toowoomba’s position as a nationally recognized transport hub.” 

Mr Ryder said the city’s appealing parks and gardens, booming health, and education facilities, and affordable housing also attract property buyers to the region. 

“With a strong economy, low vacancies, and solid yields, Toowoomba is a prime destination for those looking to invest in the property market,” he said. 

“As the city continues to grow and thrive, it remains a key player in shaping Australia’s future economic landscape.”

Lockyer Valley, QLD 

Mr Graham said the Lockyer Valley is a fertile farming region that stretches between Brisbane-Ipswich and Toowoomba and is easily accessible by the Warrego Highway, making both cities within a 40-minute drive. 

“The area is renowned for its diverse range of commercial fruits and vegetables, earning it the nickname “Australia’s salad bowl,” he said. 

“Aside from agriculture, the region is also home to light industry, a university campus and serves as the gateway to the Surat Basin mining precinct and a growing renewable energy sector. 

“It is also well-connected with major road links, and its beautiful natural landscape, featuring the Great Dividing Range, makes it a popular tourist destination.” 

Mr Graham said the upcoming $15 billion Inland Rail Link is expected to further improve transportation in the area, connecting it to interstate markets and ports. 

“With its appealing rural atmosphere and affordable property options, the Lockyer Valley is expected to continue its growth trajectory, with its population projected to increase by 40 per cent by 2041,” he said.

“It is a promising region with opportunities for both residents and businesses.”

Mount Gambier, SA

Mr Ryder said Mount Gambier is a highly desirable regional centre in South Australia for property investment due to its affordable housing, lifestyle opportunities, and strong employment growth. 

“The region’s key industry is forestry, with plans for expansion and the establishment of a forestry research centre,” he said. 

“The town has also seen an influx of interstate and intrastate residents, attracted by the affordable housing and more relaxed lifestyle.” 

Mr Ryder said this growth has put pressure on the town’s infrastructure, especially in terms of public transport, road infrastructure, and medical facilities. 

“To address these concerns, there are plans for a $70 million hospital expansion and a $190 million upgrade of the Princes Highway corridor,” he said. 

“With a median house price of $376,000 and rental yields above 5 per cent, Mount Gambier is a promising location for property investors. 

“Rental availability is also tight, with vacancies remaining below 1 per cent in the town since 2020.” 

Murray Bridge, SA 

Mr Graham said Murray Bridge in South Australia is a prime investment location due to its rural lifestyle, affordable housing options, and diverse economy. 

“It is already the regional centre for Murraylands and a sought-after destination for water activities,” he said. 

“With a current population of 23,000 and a projected steady growth over the next 20 years, it is on track to becoming one of the state’s largest regional centres.” 

Mr Graham said that in the past, Murray Bridge had an image problem and was often overlooked by investors in favour of the nearby Adelaide Hills. 

“However, with ongoing revitalisation of leisure areas and new residential developments, the area is undergoing a positive transformation,” he said. 

“It is located less than an hour’s drive from Adelaide, making it attractive to those looking for a more affordable and peaceful lifestyle outside of the city.” 

Geraldton, WA 

Mr Ryder said Geraldton – the only city on Western Australia’s Coral Coast – has experienced rapid growth in recent years due to its status as a key regional centre and its close proximity to Perth. 

This has resulted in a strong economy and a significant increase in population, with housing prices rising as a result, he said. 

“In fact, research by Curtin and Monash universities has shown that 17 of the top 50 suburbs in WA for value growth are located in the Geraldton region,” he said. 

“However, even with this notable growth, housing prices in Geraldton remain significantly lower than in other regions, with the average price for a house being around $300,000.” 

Mr Ryder said Geraldton was recognised as one of the top 5 most affordable locations in regional WA in a report by Canstar. 

“This is further supported by Hotspotting’s Price Predictor Index, which has consistently shown the Geraldton region to be a strong market for sales and growth,” he said. 

Mandurah, WA

Mr Graham said the property market in Regional Western Australia is experiencing significant growth, with high sales volume and double-digit price increases. 

This is due to improvements in the local economy, particularly in lifestyle locations such as the City of Mandurah, which has seen a surge in sales activity, he said. 

“While the rest of Perth has experienced economic disruption and downturn, the property market in Mandurah has remained resilient and continues to grow,” he said. 

“Several factors are contributing to the success of Mandurah’s property market, including continued price growth, increased demand from first-time home buyers, and population growth driven by the area’s attractive seaside lifestyle, affordable land, and access to job opportunities.”

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Trees trump sea as Australians increasingly seek out inland rural locations to call home.

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The Australian property market is well into the spring selling season, a time when both nature and the real estate markets blossom.

As spring turned the corner, we saw property listings on the up and more homes heading under the hammer.

Despite a 2022 malaise, with soaring interest rates tempering transaction activity, this year has seen price rise after price rise. PropTrack recently found that four capitals hit new peaks, and while the quarterly rate of price rises slowed, according to CoreLogic, the month-on-month figure accelerated.

This month has also seen interest rates move up once again, following four months of pauses.

Top five cheap locations

Hotspotting’s latest City Cheapies with Prospects ranks affordable locations that are oustanding with respect to population growth, infrastructure programmes, and capital growth prospects over the next six months.

The research considers factors such as rising sales activity and potential for capital growth, available dwellings at affordable prices, strong infrastructure both existing and planned, and proximity to major job nodes.

1. City of Melbourne, metro Melbourne,
2. City of Salisbury, northern suburbs of Adelaide,
3. City of Armadale, southern suburbs of Perth,
4. Southern Moreton Bay Islands, south east Queensland, and
5. City of Canning, south eastern suburbs of Perth.

Hotspotting director, Terry Ryder, said the latest city cheapies with prospects encompass a variety of local government areas primed for super capital growth in the future.

Ryder noted the Adelaide region of Salisbury is currently seeing high investor demand owing to its low vacancy rates, rising rents, and strong rental yields.

“Along with affordable prices, this attractive combination is providing strong opportunities for entry-level investors,” said Ryder.

Hotspotting general manager, Tim Graham, said the Armadale region of Perth features some of the most budget-priced houses of any capital city, and also offers strong infrastructure, services, and amenities.

“Armadale is also the fourth fastest-growing LGA in Western Australia and is strategically located in Perth’s south-east transport corridor, with access to large employment nodes,” said Graham.

“In the Southern Moreton Islands region of Greater Brisbane, Macleay and Russell islands offer median house prices in the mid-high $300,000 range. This affordability, together with significant lifestyle appeal, has seen demand and sales activity rise since 2020.”

Ryder said the City of Canning in Perth has also seen strong demand across home buyers and investors.

“With the City of Canning experiencing strong growth – particularly in the number of families moving to the area – demand for residential dwellings, infrastructure, and amenities is high,” he said.

“The City Centre Regeneration Program aims to ultimately transform Canning into Perth’s ‘southern CBD’ and will feature 10,000 homes for 25,000 new residents.”

City of Melbourne

“Despite facing challenges during the pandemic, Melbourne has shown resilience and stability in its property market,” said Ryder.

The city has several major projects playing its favour, according to the report, including the suburban rail loop, North East Link, biomedical precinct, Docklands development, Melbourne Square project, and the Southbank Arts precinct.

The report also noted the city has strong population growth and good rental yields.

“However, the rising interest rates and shifting lifestyle demands have caused investors and homeowners to look at options such as units and townhouses instead of standalone houses.”

The City of Melbourne, with its high-density dwellings making up 86% of homes, has become an attractive destination for both living and working, Ryder said.

“Its strong economy, with major businesses, universities, hospitals, and government services, has been further bolstered by ongoing infrastructure projects such as the North East Rail Link and the proposed Suburban Rail Loop.

“These developments are expected to bring in significant investments and create thousands of jobs, ensuring continued growth and stability in Melbourne’s property market.”

City of Salisbury

Defence projects, the Gawler train line electrification, and several other major projects play in the favour of the City of Salisbury.

The city has also put in a robust performance across the pandemic by undergoing a construction boom, according to Graham.

This boom is made up of medium-scale projects that have created thousands of jobs, helping to bolster the local economy during the pandemic, he said.

“As a result, property prices have seen significant growth, with some suburbs experiencing 20 per cent annual growth. This pattern has continued into the first half of 2023,” Graham said.

“The presence of government investments, totalling over $4 billion, in the defence sector has further contributed to the construction boom, which has attracted various industries such aerospace, cyber-security, and food and beverage manufacturing.

“As a result, major companies have established themselves in Salisbury, leading to increased employment opportunities and a thriving property market.”

Affordability was another key factor, alongside strong industrial activity, making it a popular choice with both investors and renters.

“As a result, vacancy rates are extremely low, with some postcodes reporting a rate of only 0.5 per cent,” said Graham.

“Rents are also increasing, making rental yields strong. Overall, the combination of affordable prices, a booming economy, and strong investment opportunities make Salisbury an ideal location for entry-level investors.”

City of Armadale

Not to be confused with Armadale in Victoria or Armidale in New South Wales, this Perth locale has been among Hotspotting’s top picks for several reports.

Affordable housing and strong population growth are among the factors playing in its favour, along with several multibillion-dollar projects including ship building, container port, lithium plant, and more.

“This local government area boasts budget-friendly housing options and excellent infrastructure, services, and amenities,” said Ryder.

“As a result, Armadale has become the fourth fastest-growing LGA in Western Australia.

“Its strategic location near major employment hubs and plans for development and infrastructure projects by the Federal Government make it a desirable place for both businesses and residential properties.”

The sustained growth of this area is reflected in its remarkably low vacancy rates, which are well below one per cent, he added.

“Overall, there are significant growth and opportunity prospects for the property market in Armadale and the wider Perth region.”

Southern Moreton Bay Islands

Located between Brisbane and the Gold Coast, in the southern half of Redland Bay, the locale is home to circa 8,000 people.

“Regular passenger ferries make it easy to commute from the islands to major job nodes such as the Brisbane CBD, Brisbane Airport, and the Port of Brisbane in under 60 minutes,” said Graham.

“There are two main islands, Russell and Macleay, as well as Lamb, Coochiemudlo, and Karragarra islands.

“Two precincts in the Southern Redland Area are marked as Priority Development Areas, with plans for a new marina, upgraded infrastructure, and job opportunities.”

Graham said the median house prices on Russell and Macleay islands are in the mid to high $300,000 range, making them the most affordable locations in Greater Brisbane.
“This, coupled with the islands’ lifestyle appeal, has led to an increase in demand and sales activity since 2020,” he added.

City of Canning

Rounding out the top five, this affordable Perth location is being touted as Perth’s future ‘Southern CBD’; it is currently home to the state’s largest shopping centre – Westfield Carousel, and some of Perth’s largest industrial hubs, according to Ryder.

“Plus, it is strategically located on Perth’s south-east transport corridor, close to the expanding Western Trade Coast hub (WTC) and the CBD,” he said.

“Other significant local infrastructure projects include the Thornlie-Cockburn Link, which will be Perth’s first east-west cross-line connection.

“It’s little wonder the LGA is experiencing strong population growth, with residential construction expected to continue well into the 2040s to satisfy increasing demand.”

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The pandemic-infused flight to the regions is here to stay, with a number of more affordable areas likely to see continued growth, according to a new report.

The Hotspotting Top 5 Regional Cheapies with Prospects Report found that there a number of affordable regional locations around the country with good growth potential, led by the City of Geraldton, (WA), Gladstone (QLD), Tamworth (NSW), the City of Mount Gambier (SA) and the Lockyer Valley (QLD).

Hotspotting Director Terry Ryder said many regional locations offered solid properties in the $200,000 to $400,000 price bracket, with the potential for long-term growth. 

“Some areas have outperformed cities in the past five years with these five chosen regions all having unique features like growing economies, diverse industries, and major developments, which makes them promising areas for investors,” Mr Ryder said. 

Mr Ryder said Geraldton – the only city on Western Australia’s Coral Coast – had experienced rapid growth in recent years. 

“As the largest city north of Perth, this key regional centre has expanded alongside the state’s booming economy,” he said. 

“The population has increased five-fold in just one year, indicating a promising future for the property market.” 

“Despite this, prices remain significantly lower than other parts of the country, with an average house price of $300,000.”

He said the region’s affordability, as well as a number of other attributes, holds strong appeal for investors and homebuyers.”

Hotspotting General Manager Tim Graham said Gladstone is also becoming a “destination” town for investors and home buyers looking for a sea change, although recent data shows the prices paid in sought-after seaside locations are on a steady upward trend. 

“Despite the pandemic, it has bucked the national downturn and continues to show positive trends such as falling vacancy rates, higher rents, and increased sales activity,” he said.

“Many are drawn to Gladstone’s economy, which is supported by its diverse range of projects including its transformation into Queensland’s clean energy capital with a large number of hydrogen projects.”

He said the city also boasts a regional airport and numerous local amenities, making it an attractive destination for both residents and migrants.

“With its ongoing expansion and thriving property market, Gladstone is a promising location for future growth,” he said.

Likewise, the Mount Gambier market is a steady performer and an example of the ripple effect that can occur outside major cities, which escalated during Covid, Mr Graham said.

“Offering affordable housing, a vibrant economy, and opportunities for employment and lifestyle, it’s a popular choice for both intrastate and interstate residents looking to relocate to the Limestone Coast,” he said. 

“The region’s key industry, forestry, is undergoing expansion, with plans for a forestry industry development and research centre.”

Mr Ryder said Mount Gambier offered investors a median house price of $376,000 and yields above five per cent.

“Rental availability is extremely tight, with vacancies below one per cent, making it a strong choice for investors seeking both affordability and cash flow,” he said. 

According to Mr Graham, Tamworth’s affordability and rural lifestyle also made it attractive for those seeking a lower cost of living. 

“Government officials encourage this trend, leading to new developments in the city and surrounding areas,” he said.

“Supported by industries like agriculture, mining, tourism, aviation, and healthcare, Tamworth has a solid economy.

He said the University of New England’s upcoming campus would further boost the education sector, while Tamworth’s tourism industry and reputation as the national equine capital contributed to its stability.

“With a strong property market, low vacancies, and high rental yields, Tamworth is a promising option for investors, with double-digit annual growth in units,” he said.

Mr Ryder said the Lockyer Valley, located between Brisbane and Toowoomba, was a highly popular agricultural region with a diverse range of crops. 

“It is home to a UQ campus, light industry, and serves as the gateway to the Surat Basin mining and renewables sectors,” he said. 

“The region is rated among the top 10 most fertile farming areas in the world. It is widely known as Australia’s salad bowl, growing the most diverse range of commercial fruit and vegetables of any area in the nation.” 

Mr Ryder said the region is also well-connected, with the Warrego Highway providing easy access to both Toowoomba and Ipswich. 

“With its rustic charm, affordable housing, and large blocks of land, the Lockyer Valley’s population is expected to grow by 40 per cent by 2041,” he said.

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A new report by Hotspotting has revealed the five top locations for robust capital growth prospects at rock-bottom prices. According to the Top 5 Cheapies with Prospects report, investors would be well-placed to seek out these markets.

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Despite near-record high property prices across the country, there are still affordable locations for investors, according to a new report.

According to Hotspotting, there are affordable areas in Perth, Melbourne, Brisbane and Adelaide, that are likely to offer the best strategic property buying and investing potential over the next six months.

Hotspotting General Manager Tim Graham said the Armadale region of Perth features some of the most budget-priced houses of any capital city, and also offers strong infrastructure, services, and amenities. 

“Armadale is also the fourth fastest-growing LGA in Western Australia and is strategically located in Perth’s south-east transport corridor, with access to large employment nodes,” Mr Graham said. 

“One notable aspect of Perth’s property market is the high level of sales activity in its cheaper suburbs, which is attributed to government incentives for first-home buyers that have contributed to the strong performance in this market.”

“This local government area also boasts of budget-friendly housing options and excellent infrastructure, services, and amenities.”

In the Southern Moreton Islands region of Greater Brisbane, Macleay and Russell islands offer median house prices in the mid-high $300,000 range. 

This affordability, together with significant lifestyle appeal, has seen demand and sales activity rise since 2020.

“Regular passenger ferries make it easy to commute from the islands to major job nodes such as the Brisbane CBD, Brisbane Airport, and the Port of Brisbane in under 60 minutes,” Mr Graham said. 

“There are two main islands, Russell and Macleay, as well as Lamb, Coochiemudlo, and Karragarra islands. 

“Two precincts in the Southern Redland Area are marked as Priority Development Areas, with plans for a new marina, upgraded infrastructure, and job opportunities.” 

Mr Graham said the median house prices on Russell and Macleay islands are in the mid-high $300,000 range, making them the most affordable locations in Greater Brisbane.

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Adramatic resurgence in the property market over the past few months is pointing towards a price resurgence for the rest of 2023 and into 2024.

Sales hotspots reveal that seven out of ten property markets around Australia now have positive sales trend activity.

Investors and upsizers are being drawn back to the market as interest rate hike fears subside and families look to utilise savings and equity buffers built up during the pandemic’s spending hiatus.

Hotspotting General Manager Tim Graham said some of the market turnarounds had been dramatic, with the City of Sydney leading the way.

“The recovery signs we noted six months ago, and more strongly three months ago, have strengthened further – and now Sydney is Australia’s strongest market,” Mr Graham said.

“Some 80 per cent of suburbs there have positive sales trends, which is the best percentage in the nation.”

The revival is widespread across all sectors, with units notably to the fore.

Top suburbs to invest $750,000 in property revealed

Based on a $750,000 budget, we reveal the top three suburbs in which to invest in real estate in four major cities, and uncover the city that presents the best investment opportunity.

Hotspotting Director Terry Ryder said Perth has been the nation’s strongest market for the past year, with the Western Australian capital continuing to thrive.

“The cheaper markets are the strongest, while the middle markets and the inner-city are also attracting solid demand,” he said.

“The turnaround in the Melbourne market has been quite dramatic.

“Three months ago, we reported a glimmer of recovery but overall Greater Melbourne was still struggling market.

“Now the city’s markets are pumping, with 73 per cent of suburbs recording positive activity.”

Mr Graham said it has been a similar story in Brisbane, which has come charging back over the past quarter, when it was classified as having its weakest market in some eight years, but now is on the busiest in the nation.

“The Adelaide market also continues to distinguish itself for its consistency of solid market performance,” Mr Graham said.

Apartments on the rise

Mr Ryder said the rise of apartments as the dwelling of choice for more and more buyers is undeniable.

“In several of our capital cities, the strongest market precincts are the inner-city areas where apartments dominate,” Mr Ryder said.

“The number one municipality in Greater Melbourne is the City of Melbourne, and the City of Sydney has similar status in the Greater Sydney market in this Spring survey.

Over the next 12 months, the competition in these markets is expected to ramp up, with upward pressure being driven by renters and home buyers.

- Darren Ventor, co-founder, DIYBA, on his three national hotspots for investors

Mr Ryder said the City of Hobart leads the market in the Tasmanian capital, while the Brisbane inner precinct is a stand-out in the Queensland capital, and inner Perth is among the strong markets in the WA capital.

“Lifestyle and affordability are the core drivers of this compelling national trend,” Mr Ryder said.

Top 10 hotspots for property upsizers

While apartments attract buyer attention, new research has revealed the top suburbs for those upsizers seeking more space.

The Property Credit findings, based on 13 criteria relating to specific property features combined with broader suburb variables, found that Perth accounted for six of the top 15 suburbs for city dwellers contemplating a more spacious abode.

Also with three suburbs in the top 10 was Canberra, an often-overlooked investor option.

The lists assigned a score out of 100 based on maximising investment potential and lifestyle.

In Sydney, Berowra Heights and Hornsby Heights stand out in the top 20 with suburb scores of 77 and starting budgets that offer exceptional value.

For Melbourne upsizers, Eltham North is the go-to suburb with a starting budget of $1,150,000 and a commendable suburb score of 77. It was the only Victorian suburb in the top 20, while Lysterfield also scored a 75.

Residing outside the top 20 but with scores above 75 were Sydney’s Kareela and Barden Ridge.

Queensland’s top three were Tarragindi, Mount Crosby and Seventeen Mile Rocks.

Regional hotspots

Other hotspotting research, this time conducted by online property investing portal DIYBA, singled out three local council areas for their investor potential, two of which were in regional areas.

Focusing on potential capital growth and rental yields, the research singled Kwinana Council in southern Perth, and regional centres Rockhampton Regional Council in Queensland and Gawler Council in South Australia.

The City of Kwinana is known as a coastal heavy and light industrial economic powerhouse of the Western Australian economy, with its more inland residential component incorporating leafy suburbs such as Orelia, Medina, Calista, Parmelia and Leda. Median rents have risen from around $300 to $500 since late 2018.

Like Kwinana, Rockhampton was seen as having strong capital growth prospects and delivered high rental yields. Suburbs such as Wandal, The Range, Park Avenue and Kawana have seen property prices and rents soar in the past five years.

Town of Gawler, north of Adelaide with suburbs such as Willaston, Gawler West, East and South, and Evanston, hasn’t delivered the same level of rent hikes as the previous hotspots but its capital growth since mid 2018 has been exceptional.

DIYBA co-founder, Darren Venter, said population growth was a key factor in their continued potential for investors.

“Specific pockets and suburbs within these council areas in particular are expected to rise in capital growth and/or cashflow due to an increasing population driven by affordability and the assistance of economic growth from employment, and the need to house the new and expanding population.

“Investors and home buyers will be attracted to the low, if any, holding cost of the properties in these markets.

“Over the next 12 months, the competition in these markets is expected to ramp up, with upward pressure being driven by renters and home buyers.”

Read The Full Article Here

Property prices will continue to grow after a “massive improvement” in conditions over winter, led by the big cities.

According to the Hotspotting Price Predictor Index (PPI), the City of Sydney has been the standout market over the past quarter, while a number of other areas in the bigger cities have also shown a resurgence.

Hotspotting General Manager Tim Graham said larger cities were performing best.

“The big cities are back,” Mr Graham said.

“While Perth and Adelaide remain as busy as before, the nation’s three biggest cities have mounted significant comebacks. 

“Sydney, Melbourne, and Brisbane are all markets on the rise, with Sydney ranked as the No.1 market nationwide based on having 82 per cent of suburbs with positive sales trends.” 

Mr Graham said some of the market turnarounds had been dramatic.

“The recovery signs we noted six months ago, and more strongly three months ago, have strengthened further – and now Sydney is Australia’s strongest market,” he said. 

“Some 80 per cent of suburbs have positive sales trends, which is the best percentage in the nation. 

“The revival is widespread across all sectors, with units notably to the fore.” 

Hotspotting Director Terry Ryder said the rate of price growth in cities and regional markets across Australia was likely to accelerate in the wake of major uplifts in sales activity in many locations. 

“Now we are seeing growth momentum in most corners of the nation,” Mr Ryder said.

“Among the capital cities and regional jurisdictions of the nation, only two – Canberra and Darwin – remain in the doldrums. 

“Everywhere else, resurgence and growth are the dominant themes.”

He said some of the other top-performing markets included Blacktown, Brisbane North, Casey, Gold Coast, Gladstone, Melbourne City, Stirling, Tea Tree Gully, and Wollongong.

Mr Ryder said Perth has been the nation’s strongest market for the past year, with the Western Australian capital continuing to thrive. 

“The cheaper markets are the strongest, while the middle markets and the inner-city are also attracting solid demand,” he said. 

“The turnaround in the Melbourne market has been quite dramatic. 

“Three months ago, we reported a glimmer of recovery but overall Greater Melbourne was still a struggling market. 

“Now the city’s markets are pumping, with 73 per cent of suburbs recording positive activity.” 

Mr Graham said it was a similar story in Brisbane, which has come charging back over the past quarter, when it was classified as having its weakest market in some eight years, but now is on the busiest in the nation. 

“The Adelaide market also continues to distinguish itself for its consistency of solid market performance,” Mr Graham said. 

“While the larger capital cities were struggling over the past year, Adelaide continued to attract steady buyer demand – and seven out of 10 suburbs still have good buyer activity. Consistency markets are the strongest cohort in Adelaide.” 

He said that more affordable locations are also doing well.

“The revival in buyer demand in Sydney, Melbourne, and Brisbane has included recovery in the affordable areas,” he said.

 “The City of Blacktown has led the resurgence in western Sydney, the City of Casey is prominent in the Greater Melbourne comeback, and outer-ring precincts of Greater Brisbane have seen buyer demand recover. 

“Meanwhile, the bottom end continues to thrive in the Adelaide and Perth markets.”

Mr Ryder said the rise of apartments as the dwelling of choice for more and more buyers is also undeniable.

 “In several of our capital cities, the strongest market precincts are the inner-city areas where apartments dominate,” he said. 

“The No.1 municipality in Greater Melbourne is the City of Melbourne, and the City of Sydney has similar status in the Greater Sydney market in this Spring survey.”

Despite the focus on larger cities, Mr Ryder said that there is still steady demand for regional locations.

“We’ve seen multiple headlines suggesting that demand in regional markets has collapsed and that prices are no longer rising,” he said. 

“Our analysis refutes that. 

“Regional markets remain strong and indeed we have recorded a significant upturn in buyer demand in the regional areas of the eastern states.”

Read the full article here

A new report identified Sydney was now home to 15 of the best 75 markets for capital growth potential across the country, the second highest concentration of growth areas after Perth.

Many of the areas where prices were expected to outperform the rest of the market were higher density areas near expanding infrastructure, according to research group Hotspotting’s Price Predictor Index.

They included Avalon Beach, Clovelly, Rose Bay, Waterloo, Zetland and Meadowbank, among others.

The Hotspotting report showed unit purchasers in these areas would benefit from above average growth in property values, higher rents relative to mortgage costs and lower vacancies.

It comes as recent PropTrack modelling showed home prices across Sydney were expected to rise by an average of about 3-6 per cent over 2023 – despite interest rate rises reducing buyers’ borrowing capacity.

Hotspotting identified 74 “supercharged suburbs” where sales volumes have been consistently rising for three quarters or more, which was reported as a reliable indicator of future price growth.

“Sustained rises in sales volumes will be followed by a rise in prices,” Mr Ryder said.

“History shows us there is a correlation between sales volumes and price movements – the number of sales changes first and prices react – with a time lag. This is true whether markets are rising or falling.”

Hotspotting general manager Tim Graham said the 74 supercharged suburbs list was dominated by Western Australia, which was deemed the nation’s best property market at present.

“With 26 of the 74 supercharged suburbs being in WA, and especially in Perth, this is further proof that homebuyers and investors continue to be highly active on the west coast,” he said.

“Interestingly, NSW was the second-best performer when it came to the number of suburbs on the list – with 15 of the 74 – with many of these suburbs being some of the Sydney’s most desirable as well.”

Some of the higher density NSW suburbs on the supercharged list included Wolli Creek, Zetland, Waterloo and Ultimo.

Local agents revealed these areas were once oversupplied with apartments, but the glut of available homes had long disappeared and rising popularity with buyers and a slowdown in new construction meant demand now exceeded supply.

Right Property Group director Victor Kumar told a Property Investment Professionals of Australia panel that spring would be a key test for the NSW housing market.

“The NSW housing market has been quite resilient,” he said. “But I believe the true tell will come once more stock comes onto the market, which may lead to copycat sellers rushing to the market.”

Read the full article here

The Hotspotting National Top 10 Best Buys 2023 report comes amid mounting evidence of a recovery in Geelong’s property market after the post-Covid slump.

The report shows Geelong remains a hot spot for homebuyers on the back of strong population growth, economic diversification and the success of the Armstrong Creek urban growth corridor as a job creator.

Billions in investments, including defence manufacturing contracts, local infrastructure and a $294m Geelong Convention Centre were other reasons to buy in the region, the report showed.

Hotspotting general manager Tim Graham said recovery was the underlying theme in Geelong, where previously declining suburbs were now showing stronger sales activity, a pointer to future price growth.

The firm’s two most recent Price Predictor Index reports showed Geelong continues to attract significant buyer demand.

“Hotspotting attributed this to the strong economy and its affordable prices, relative to Melbourne,” Mr Graham said

Greater Geelong is a steady, highly consistent market that continues to see solid demand in 2023, he said.

“Many suburbs continued to have busy markets, with Lara, Highton, Ocean Grove, Corio, Armstrong Creek, and Grovedale all recording more than 200 annual house sales,” Mr Graham said.

“Newcomb, Corio, Norlane, and Whittington offer the area’s lowest prices, with Norlane recording a median house price of $460,000 and Corio $510,000.

“Many Geelong suburbs have capital growth rates averaging around 10 per cent per year for the past decade – while Barwon Heads, Indented Head and Queenscliff averaged 13 to 14 per cent per year.”

National valuation firm Herron Todd White has reclassified Geelong as reaching the bottom of the market on it’s national property clock in August.

Herron Todd White Geelong property valuer Leigh Burns said he agreed with the assessment.

“We’re either at the bottom or the near the bottom and waiting for recovery,” Mr Burns said.

“In the last 24 to 36 months we’ve seen the prices rise fairly dramatically in some areas, and it’s either stabilised or started to drop off depending on locality,” he said.

Values in satellite suburbs such as Lara and Leopold were flat, while the northern suburbs also had remained steady, he said.

Conversely, Armstrong Creek had suffered as there was a lot of “very similar” properties and not as many buyers.

Read the full article here

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The property market across the country continues to look increasingly positive, with an expert tipping more growth is still ahead for many areas.

The Hotspotting Top 10 National Best Buys report, revealed several areas across the country are outperforming led, by Queensland and Western Australia.

Hotspotting Director Terry Ryder said price data in the first seven months of the year has turned increasingly positive as property markets rebound.

“It’s important to note that the upturn in fortunes occurred long before the RBA decisions in July and August to pause its increases to the official interest rate,” Mr Ryder said.

“Just as the decline in major markets like Sydney and Brisbane started well before the first interest rate rise in May 2022.

“This is because there are greater influences on property market outcomes than the level of interest rates.”

Queensland showing strength

Hotspotting General Manager Tim Graham said Toowoomba continued to be one of the strongest regional markets in Queensland, with a high number of consistent suburbs and no declining locations.

He said Mount Lofty was one of the nation’s top performers, while Darling Heights and Middle Range also performed well. 

“Based on CoreLogic data for the 12 months to May 2023, Newtown, East Toowoomba, Harristown, Highfields, South Toowoomba, Wilsonton and Wilsonton Heights recorded the city’s highest annual increases in median house prices – up 15 per cent to 17 per cent,” Mr Graham said.

Mr Graham said the Brisbane Olympic Precinct was also a location showing promise, with Woolloongabba lifting its median house price four per cent and its median unit price nine per cent in the 12 months to April 2023. 

“Fairfield’s median house price jumped 22 per cent, while the median unit price for Annerley rose 13 per cent,” he said. 

“Very few houses are available in the region for under $1 million, and the impact of preparations for the Olympic Games is set to increase those prices further.”

Read the full article here.

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Spring is upon us and the property market is singing. Australian property prices were found to have risen 0.28% last month, with the PropTrack data also recording a year-on-year rise of 2.64%, and a 3.51% rise in home prices so far this year.

PropTrack Home Price Index August 2023

Source: PropTrack.

The auction market is also a hit with bidders, with the first weekend of spring to see 2,401 homes go under the hammer.

Hotspotting’s latest Top 10 National Best Buys report likewise found that Australian property markets have rebounded, with affordable capital city locations and major regional areas offering solid homebuying and investment opportunities.

The research considered a comprehensive suite of metrics, including economic and property fundamentals such as infrastructure, employment nodes, urban renewal as well as lifestyle and interstate migration factors.

Australia’s top 10 growth locations

1. City of Stirling, WA,
2. Toowoomba, QLD,
3. Greater Geraldton, WA,
4. City of Salisbury, SA,
5. Inner West, NSW,
6. Brisbane Olympic Precinct, QLD,
7. City of Townsville, QLD,
8. City of Hume, VIC,
9. City of Belmont, WA, and
10. City of Geelong, VIC.

Toowoomba

Hotspotting general manager, Tim Graham, said the regional Queensland location was previously on the National Top 10 Municipalities list in the Summer 2022-2023 edition of The Price Predictor Index.

“Some 14 of the 25 Toowoomba suburbs analysed in the report were classified as rising markets, with six others rated as consistency markets,” he said.

The city’s stellar performance continued in the Autumn and Winter 2023 editions of the report.

“The Winter 2023 edition reported that Toowoomba continued to be one of the strongest regional markets in Queensland, with a high number of consistency suburbs and no declining locations,” Graham added.

“Based on CoreLogic data for the 12 months to May 2023, Newtown, East Toowoomba, Harristown, Highfields, South Toowoomba, Wilsonton and Wilsonton Heights recorded the city’s highest annual increases in median house prices – up 15% to 17%.”

Tim Graham, Hotspotting

Read the full article here

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A new report from Hotspotting revealed the top locations in Australia right now where investors can enjoy the “holy grail” of rising rents and property prices, as rental yields go beyond 6.5%.

The quarterly Hotspotting Pulse Report, exclusively provided to Your Investment Property, identified several locations in Queensland, South Australia, Western Australia, and Northern Territory where investors can take advantage of strong market fundamentals, including rising rental yields, robust growth outlook, and tight vacancy rates.

Hotspotting general manager Tim Graham said if investors can attain strong yields in low-risk areas facing price growth, they are poised to secure sensible investments in the present economic landscape.

“One of the most noticeable features in this quarter’s Pulse is that in almost every one of the locations the median house price has risen in the past three months – but the median yield has also increased,” he said.

Mr Graham said the abundance of areas experiencing both rising yields and property values signifies a strong market environment for investors looking to enter or expand their property portfolios.

Read the full article here

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• The Perth housing market has yet to reach its full potential.
• More affordable markets are predicted to perform well.
• Those markets are also centres of employment or seeing infrastructure upgrades.

Perth property prices recently hit new records. Data from the Real Estate Institute of Western Australia (REIWA) revealed Perth’s real estate market broke house price records across the 2022-2023 financial year. As July wrapped up, REIWA data also revealed Perth house prices beat the 2014 peak, reaching a new high of $560,000.

A new Hotspotting report on the Perth property market reveals that the growth is yet to stop, as Perth’s full potential has not been fully realised.

The Property Tribune can exclusively reveal Hotspotting’s insights and analysis into which Perth locations are predicted to have more sales and price growth across the next six months.

Perth’s top five property hotspots

1. City of Stirling,
2. City of Canning,
3. City of Armadale,
4. City of Belmont,
5. City of Gosnells.

The list of attractions to the Western Australian capital includes relative affordability, excellent rental yields, an enviable lifestyle, and more.

“According to the CoreLogic Home Value Index published early in August, the median house price for Perth is $625,000 – less than half the median price in Sydney, which is now over $1.3 million, and a long way below Melbourne’s $924,000,” said Hotspotting general manager, Tim Graham.

“It also falls well short of the $960,000 in Canberra and the $820,000 in Brisbane,” he said.

“Even Adelaide and Hobart are significantly more expensive than Perth. Indeed, in Adelaide, you pay $100,000 more for the average house than you do in Perth.

“Only Darwin among the capital cities has cheaper houses than Perth.”

Read the full article here

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SOUTHPORT is emerging from the shadows of Surfers Paradise as an investor hotspot, according to a new report.

The Hotspotting National Top 10 Apartment Hotspot report revealed the top apartment locations for the next six months with Southport the only Gold Coast suburb to make the list.

Hotspotting general manager Tim Graham said the 2018 Commonwealth Games left Southport with a major legacy – extensive infrastructure.

Now, major new enterprises are adding to the precinct’s reputation as a centre for economic activity, employment, and enterprise, he said.

“The Games was the catalyst for the light rail network and the $1.8 billion Gold Coast University Hospital,” Mr Graham said.

“The latter forms part of the Gold Coast Health and Knowledge Precinct, predicted to have 26,000 jobs when completed.”

Mr Graham said Southport was also declared a Priority Development Area by the Gold Coast City Council in 2013.

“Southport has undergone serious gentrification since then, introducing vibrancy to what was an older-style suburb, bringing diversification of industry and catering for population growth,” he said.

“This, together with the lifestyle advantages of this precinct – including access to The Broadwater – augurs well for the property market as job opportunities expand.

“Vacancy rates here are low and usually more stable than the Gold Coast tourist spots that attract the transient population, and prices are more affordable.”

There is also a higher-than-average number of renters seeking homes, providing openings for investors, Mr Graham said.

“The median price for houses here is $850,000 but units are around $500,000, providing a high level of affordability and yields above six per cent, supported by vacancies well below one per cent,” he said.

Amir Mian, of Amir Prestige is marketing 4 Drury Ave, Southport — a rundown Queenslander house on a sprawling 1057sq m block.

“This would definitely suit mum and dad investors or someone who can see the redevelopment potential here,” Mr Mian said.

“I could see six villas built here — you can literally walk to the schools and shopping centres and HOTA is nearby. It’s a really great precinct there.”

Mr Mian said Southport was a central suburb that offered a lifestyle suited to a lot of buyers.

“There’s a huge market for people who want to be central on the Gold Coast,” he said.

The property goes under the hammer on September 29.

Read the full article here

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Strong demand for apartments has made units an enticing proposition for investors, with a host of locations likely to see rising prices in the next six months.

According to Hotspotting’s National Top 10 Apartment Hotspot report, Queensland, NSW, Victoria, South Australia and the ACT all feature suburbs where apartments are likely to outperform.

According to the report, most of the in-demand apartment locations are in Queensland, which is currently experiencing a high level of population growth.

Hotspotting General Manager Tim Graham said Annerley, in Brisbane, is likely to benefit from the positive impacts of the 2032 Olympics, as a near neighbour of the main event venue, Woolloongabba.

“Beyond of the Olympics’ influence, Annerley is a well-located and well-connected suburb in Brisbane’s inner-south,” Mr Graham said.

He said units in the suburb sell quickly and are priced affordably compared to houses.

Also in Queensland, the Sunshine Coast has been one of Australia’s strongest markets since 2020, boosted by the region’s big infrastructure spend and its key role in the exodus to affordable lifestyle trend.

Read the full article here.

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The Australian apartment market has been sharply in focus due to its resilience, affordability, and the important role it plays in housing supply.

Apartments have also garnered attention as performance begins to outpace standalone houses, with Hotspotting director, Terry Ryder, pointing out apartments recorded faster rental growth, superior price growth rates over most of the past 12 months, and a growing share of new dwelling approvals.

“There is a plethora of reasons why apartments are increasingly becoming the property of first choice for home buyers and investors,” Ryder said.

Apartment stock is relatively low

Hotspotting general manager, Tim Graham, noted that apartments comprised only 46% of dwellings in Australia’s most densely populated city, Sydney.

“In London, apartments comprise 94% of dwellings, while in Singapore it is 93% and in Hong Kong, it is 84%,” Graham said.

Furthermore, apartment stock in smaller capitals like Hobart is a mere 15% of homes.

Read the full article here.

• Over 35,000 interstate migrants decided to call Queensland home in the year to December 2022, according to data from the Australian Bureau of Statistics.
• The big smoke exodus was apparent prior to Covid.
• A 'hill change' was among the notable trends.

Queensland has claimed four out of the top 10 spots on Hotspotting‘s latest Exodus to Affordable Lifestyle National Top 10 report.

In a search for the top affordable lifestyle locations with the best upside potential for the next six months, Hotspotting considered whether an area had strong sales activity and potential for capital growth; good stock levels at reasonable prices; strong infrastructure, both existing and planned; and proximity to major jobs hubs.

Top 10 affordable lifestyle locations

1. City of Geraldton, Western Australia,
2. City of Toowoomba, Queensland,
3. Rural City of Murray Bridge, South Australia,
4. Gladstone, Queensland,
5. City of Mandurah, Western Australia,
6. Hunter Valley, New South Wales,
7. Mitchell Shire, Victoria,
8. City of Mount Gambier, South Australia,
9. Cairns, Queensland,
10. Lockyer Valley, Queensland.

Big city exodus not a pandemic trend

The shift to smaller cities and regional hubs had been well underway prior to the pandemic. Hotspotting General Manager, Tim Graham, highlighted the fact that people had been making the move for over a decade.

“Statistics demonstrate that Sydney and Melbourne have been losing population to other parts of the country for 10 and five to six years respectively,” said Graham.

Hotspotting Director, Terry Ryder, echoed the sentiment, adding many were looking for more affordable lifestyle locations – particularly those located in Sydney.

“According to the latest stats from the ABS, the Sunshine State’s net population increased by 2.2% – or 116,000 new residents – in the year to December 2022, with about 35,500 being interstate migrants,” he said.

“Interestingly, Sydney net interstate migration [recorded] a fall of about 31,500, with many of these people heading to the more affordable lifestyle markets throughout Queensland.”

Ryder said the exodus from big cities had been thrust into the spotlight in recent years because many assumed that its momentum was due to the pandemic.

“However, its growth has been primarily due to individuals and families seeking a better lifestyle and affordability that is made possible through remote working that advances in technology have allowed for,” he said.

Will the big cities make a comeback?

Unlikely, said Graham, who noted that while many speculated a post-pandemic shift would happen, it simply hasn’t eventuated.

“There is little evidence that this will be the case as those who have gone through the effort to relocate and uproot their families will likely not be willing to do so again,” he said.

“Consequently, the regions have outperformed the capital cities in price growth for the past five years due to the exodus trend. And, as many markets are experiencing a downturn in prices, regional areas are proving to have more resilience.”

Ryder also observed a ‘hill change’ trend, with many looking for hinterland and country regions.

Read the full article here.

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Queensland has won the lion’s share of exodus to an affordable regional lifestyle, with the Sunshine State taking four of the top 10 spots in Hotspotting’s latest property rankings.

The Hotspotting Exodus to Lifestyle – National Top 10 report has revealed the top affordable lifestyle locations with the best upside potential, based on the following property metrics:

• rising sales activity with potential for capital growth,
• plenty of houses at affordable prices,
• strong infrastructure, both existing and planned, and
• proximity to major job nodes.

Tim Graham, Hotspotting general manager, said the “exodus to affordable lifestyle” has shaken up the real estate game for the past five to 10 years.  

The trend has been thrust into the spotlight in recent years, however, because many assumed its momentum was due to the COVID-19 pandemic, Ryder said.

“However, its growth has been primarily due to individuals and families seeking a better lifestyle and affordability that is made possible through remote working that advances in technology have allowed for,” he said.

“As of recently, the most desirable areas for relocation have been Queensland and Western Australia, with Queensland at the very top of the list.”

Graham noted that over the past five years, the regions have outperformed the capital cities in price growth and were proving to be more resilient as many markets were experiencing a downturn in prices.

Read the full article here.

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Queensland and Western Australia are set to be the big winners as people continue to flee the big cities and seek out affordable lifestyle locations.

Hotspotting Director Terry Ryder said the majority of Sydney and Melbourne buyers had been targeting the Sunshine State because of its relative affordability and great lifestyle, despite Covid coming to an end.

While regional Western Australia has come back into favour amongst buyers as the local economy had recovered from its post-mining boom slump.

Hotspotting General Manager Tim Graham said prior to Covid, it had become increasingly apparent that more and more people were leaving the largest cities and heading for smaller cities or regional areas.

“While media outlets suggested that this was a product of the pandemic lockdowns, the reality is that this major population shift has been underway for more than a decade,” Mr Graham said.

“Statistics demonstrate that Sydney and Melbourne have been losing population to other parts of the country for 10 and five to six years respectively.” 

Read the full article here

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There are no signs yet of the great migration to the Sunshine State stopping or going into reverse, with four Queensland regions named among the top 10 affordable locations poised for more growth.

The latest Exodus to Affordable Lifestyle report by Hotspotting has named Toowoomba, Gladstone, Cairns and the Lockyer Valley as the regions to watch over the next quarter, as other popular coastal and hinterland spots become out-of-reach for the majority of buyers.

Hotspotting general manager Tim Graham said the past five to 10 years had ushered in a new trend that was shaking up the real estate game – the exodus to affordable lifestyle.

“Prior to the Covid-19 pandemic it had become increasingly apparent that more and more people were leaving the largest cities and heading for smaller cities or regional areas,” he said.

“Statistics demonstrate that Sydney and Melbourne have been losing population to other parts of the country for 10 and 5-6 years respectively.”

Mr Graham said that while some commentators had suggested that people would start to return to the bigger cities, that was not happening according to their analysis.

“There is little evidence that this will be the case as those who have gone through the effort to relocate and uproot their families will likely not be willing to do so again,” he said.

“Consequently, the regions have outperformed the capital cities in price growth for the past five years due to the exodus trend.

“And, as many markets are experiencing a downturn in prices, regional areas are proving to have more resilience.”

But Mr Graham said it was important to take into account factors such as the economy, transport links, infrastructure, affordable housing and the lifestyle offered.

Rounding out the top 10 regions to watch were Geraldton and Mandurah in Western Australia, Murray Bridge and Mount Gambier in South Australia, the Hunter Valley in NSW and Mitchell Shire in Victoria.

Planning Changes Pave Way for Chatswood Tower Blitz

Taller towers are on the horizon for Sydney’s Lower North Shore with multiple development applications hitting the planning portals.

More than four towers were lodged in Chatswood in the past month contributing to the 4000 homes earmarked in Willoughby City Council. 

The suburb, 10km north of Sydney CBD and with a Westfield shopping centre, benefited from changes to Willoughby Local Environmental Plan and Development Control Plan drafted last year.

This included “developing Chatswood as a key commercial centre” and extending the CBD from the Pacific Highway, Chatswood station to the east.

The plan permitted mixed-use buildings up to 90m in an effort to move the suburb into Sydney’s top 10 suburban office markets.

Thirteen rezoning proposals around Chatswood were also approved around the CBD “facilitating high-density residential development in an effort to increase housing supply and capacity for growth in the area”.

Hotspotting general manager Tim Graham said the latest edition of the Property Price Index found Sydney’s market was recording consistent sales quarter by quarter.

“Inner-city precincts with a high content of apartments continue to attract solid demand,” Ryder said.

“In the biggest cities, the strongest markets tend to be the more expensive areas where interest rate levels are less impactful because there are many cash buyers, while the cheaper outer-ring precincts are struggling.”

The changes spurred on investment in the area including Coronation Property which bought a 2000sq m site last year at 57-61 Archer Street, Chatswood.

Four other large-scale development applications have been lodged to council since June 20.

Read the full article here.

Read the full article here.

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Perth, Adelaide, and Hobart have the strongest property markets with rising sales suggesting prices could be on the rise.

According to the Hotspotting Price Predictor Index (PPI) for Winter 2023, currently, there are several areas across Australia where sales activity is weak, but prices remain strong because there is a shortage of listings of properties for sale.

Hotspotting General Manager Tim Graham said while it may not be fashionable, the City of Gosnells is a standout for attracting strong buyer demand – because it offers affordability in an area with good amenities.

“In simple terms, it’s what the mainstream buyer is looking for, whether they’re home-buyers or investors,” said Graham.

“Of the nine Gosnells suburbs in our analysis, eight have positive rankings – four rising, three consistency and one recovering markets.

“Most of these locations have median house prices in the $300,000s and $400,000s, providing a level of affordability that Melbourne and Sydney residents can only dream about – and it’s attracting investors from the eastern states in large numbers, too.”

Read the full article here.

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EIGHT Hobart suburbs have defied the downturn trend and been classified as “rising” areas in a national property report.

Across the state’s regional areas, seven more suburbs made the list and are now seen as on the rise.

Hotspotting managing director Terry Ryder said Tasmania was the only market jurisdiction in Australia that increased the number of locations ranked as rising markets in the Winter 2023 Price Predictor Index.

“Overall, it is one of the most bullish markets we’ve recorded for Tasmania in the eight years of our surveys,” he said.

“There are only 11 locations classified as declining markets, compared with 27 just three months ago. These include Bridgewater, Invermay, Midway Point, Queenstown and St Helens.

“The number of locations with negative (plateau or declining) classifications has halved from autumn to winter — 65 to 33.

“Markets that were struggling are now recovering.

“Tasmania, led by Hobart, is among the jurisdictions with the strongest market pulses, having appeared previously to be well past their market peaks.”

Hotspotting general manager Tim Graham said there were areas where sales activity was weak, but prices remained strong due to a shortage of properties for sale.

“This is the most common complaint from property professionals and investors,” he said.

“There is demand from buyers but a serious shortage of stock for sale.”

The Hotspotting index tracks housing sales volume rather than median price changes and asserts that a sustained rise in sales volume is a superior indicator of future pricing growth.

Read the full article here.

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Hotspotting’s Winter 2023 Price Predictor Index ranked Brisbane as the weakest sales market in Australia with only 12 suburbs named as rising, and a whopping four out of five now in negative territory.

Hotspotting General Manager Tim Graham added that “currently, there are areas across Australia where sales activity is weak but prices remain strong – because there is a shortage of listings of properties for sale”.

“This is the most common complaint from property professionals and investors throughout the nation – there is demand from buyers but a serious shortage of stock for sale. Examples include Brisbane and Regional Queensland, where sales activity is weak but prices are holding up stubbornly.”

Some of regional Queensland’s previously buoyant centres were seeing sales subsiding, with locations with negative rankings outnumbering positive ones by two to one now.

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Perth is the nation’s standout property performer, and much maligned Gosnells is the country’s number one property star, according to Hotspotting property analysts.

Hotspotting Price Predictor Index for Winter 2023 has put Gosnells in the pole position, with its strong sales activity, desirable amenity, and affordable homes expected to boost prices soon.

Canning, Mandurah and Stirling are also on Hotspotting’s list of the country’s top ten performers because the areas — like Gosnells — have strong sales activity, good amenities and are relatively affordable.

Hotspotting general manager Tim Graham said Gosnells “may not be fashionable, and it’s certainly not upmarket,” but it stood out for attracting strong buyer demand.

“In simple terms, it’s what the mainstream buyer is looking for, whether home buyers or investors,” he said.

“Of the nine Gosnells suburbs in our analysis, eight have positive rankings — four rising, three consistency and one recovering markets.

“Most of these locations have median house prices in the $300,000s and $400,000s, providing a level of affordability that Melbourne and Sydney residents can only dream about — and it’s attracting investors from the eastern states in large numbers, too.”

The Winter 2023 Report said the Perth market was more robust now than in its Autumn report — when it was also highlighted as the most robust market in Australia — with more locations recording positive sales trends.

The report found 71 per cent of local government areas studied have strong sales, including 59 with rising sales — indicative of looming price increases — and 72 with consistent markets.

This compares to two-thirds with a rising sales activity in the Autumn report and 63 consistent markets in Autumn.

“Perth has maintained its status as undoubtedly the nation’s busiest and most buoyant property market,” said the report.

“Perth’s strong sales activity record has maintained upward pressure on prices at a time when some cities have recorded falling prices.”

Recent data from SQM Research recorded an 11.5 per cent increase in Perth’s house price index from 12 months to May 2023. Perth also has the lowest median house price of any capital city in Australia, except for Darwin.

“Perth’s affordability relative to other capital cities is a big factor in ongoing demand from home-buyers and investors.

“It’s the bottom end of the city’s market, as well as the consistently solid middle markets, which maintain the nation-leading demand levels.”

The regional WA market has started to reverse the signs of decline seen in our two previous quarterly surveys, led by a revival in the Mandurah market.

The report found growing evidence of recovery across the country, with improved activity in Hobart, Sydney, some sectors of Melbourne, and the regional markets in NSW, Victoria, WA, South Australia and Tasmania.

“Western Australia, South Australia, and Tasmania — headed by their capital cities Perth, Adelaide, and Hobart — are the jurisdictions with the strongest market pulses,” said Mr Graham.

“Although locations with negative rankings still outnumber those with positive ones, the gap has closed in this Winter survey, with the number of plateau markets reducing and the number of consistency and recovering locations rising,” he said.

“Jurisdictions, where there is growing evidence of recovery in activity, include Hobart, Sydney, some sectors of Melbourne, and the regional markets in NSW, Victoria, WA — where the key market of Mandurah has made a resurgence — South Australia and Tasmania.”

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A new report by leading property analysts at Hotspotting.com.au suggests investors seeking affordable property with prospects in the next six months should look further afield than their own backyards.

The Hotspotting report names five regional ‘cheapies with prospects’ across the country that meet the criteria of having affordable buy-in prices, solid rental returns, potential for price growth and growing populations.

It comes as new figures show Australia faces a population boom fuelled by a rise in net overseas migration of up to 1.755 million by 2028.

Regional areas are predicted to grow at phenomenal speeds, particularly in Queensland as migrants form NSW and Victoria seek out more affordable living options.

Hotspotting general manager Tim Graham said many regional areas had outperformed the big cities in the past three years.

“Affordable prices, higher yields and superior growth: it’s a win-win-win situation for investors,” Mr Graham said.

“Of course, not every regional centre in the nation is a future hotspot. A location needs to have more to offer than cheap real estate to be featured in this report — it must also have growth drivers likely to lead to capital growth over time.”

Australian property market predictions: Top 5 affordable locations with potential

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continued in 2023.

“The market started to turn around in 2020, at the start of the pandemic, with its busy market coupled with strong buyer demand continuing since then,” he said.

Graham added many of Perth’s stand-out municipalities are also at the affordable end of the market, including the City of Canning, which can attribute its popularity to its cluster of affordable suburbs with excellent amenities, green space and train links.

Many suburbs were noted to have affordable median prices between $435,000 to $555,000, with the suburb also home to more expensive, riverfront locales, too.

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Tim Graham, Hotspotting general manager, said regional Australia had generally performed better than capital cities due to their more affordable options for all kinds of buyers.

“With technology allowing more people to work remotely, more people have opted out of the big, congested, expensive cities and moved to smaller cities and to regional areas,” Graham said. “This has been happening for the past decade and has become more visible in the past three years or so.”

“Now, following massive price growth in 2020 and 2021 in particular, some of these regional locations – such as Byron Bay, the Sunshine Coast, the Mornington Peninsula and the Southern Highlands – have become so expensive that they’re no longer attracting large numbers of new residents.”

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