Australia’s TOP FIVE investment locations revealed {and we’re in it!}

The strong market conditions over the past year are not deterring investors who can still strategically purchase a house in a number of affordable locations around the nation, according to Qualified Property Investment Adviser (QPIA) and Buyer’s Agent Grant Foley.

“Savvy investors are targeting smaller capital cities as well as major regional locations with lower buy-in prices as well as robust economic fundamentals,” says Grant.

“Sydney and Melbourne are really the outliers when it comes property price compared to the rest of the nation with house prices in those cities generally well above $1 million. However, two-thirds of our population live outside of these two capital cities, where purchase prices are more affordable and often in places where there is excellent potential for value uplift over the medium- to long-term.”

Mr Foley said that the recent 2021 Property Investment Professionals of Australia (PIPA) Annual Property Investor Sentiment Survey reinforced that many investors were looking at locations outside of Sydney and Melbourne to invest in.

The national annual survey, which gathered insights online from nearly 800 property investors during August, found that more than 76 per cent of investors believe property prices in their state or territory will increase over the next year – up strongly from 41 per cent last year.

Most investors continue to tip metropolitan markets as offering the best investment prospects at nearly 50 per cent (but down from 61 per cent in 2020), followed by regional markets on 25 per cent (up from 22 per cent), and coastal on 21 per cent (up strongly from 12 per cent last year), according to the survey.

Mr Foley said there were a number of locations that ticked many boxes for savvy investors keen to start or grow their portfolio, with five locations offering freestanding houses under $650K.

1. Moreton Bay, Greater Brisbane - Mr Foley said the Moreton Bay region was experiencing ripple growth from Brisbane City Council suburbs as first home buyers sought more affordable housing options. “The region is also benefitting from strong interstate migration, as well as myriad major infrastructure projects including transport nodes and a new university – with gentrification of the Redcliffe peninsula also under way.”

2. Ballarat, Victoria - Mr Foley said this large regional town located just 1.5 hours’ drive from Melbourne was a sound option given its potential for commuters travelling to the Victorian capital a couple of days per week and working from home the remainder of the time.

3. Newcastle, New South Wales - Mr Foley said the charms of Newcastle may be well-known, but its house prices remained much more affordable than nearby Sydney. “Newcastle has reinvented itself from a former steel city to a lifestyle location that boasts amazing beaches, jobs in health and education, as well as being within commutable distance to Sydney for those working in the Harbour City a day or two a week.”

4. Adelaide, South Australia - The Adelaide property market has historically been a sustainable one over the years, which means it generally doesn’t experience booms or busts, Mr Foley said. “The buy-in price for a house in the City of Churches remains affordable for buyers and investors alike, including potentially purchasing in its investment grade middle-ring, which is not an option in most other capital cities.”

5. Perth, Western Australia - Mr Foley said the Perth property market had been off the boil for a while before the pandemic, but that situation appeared to be rapidly changing. “There was a point in time when the Perth median house price was on par.

For more information about the annual survey visit www.pipa.asn.au.