Qld property markets dominating the nation - July 2017
QUEENSLAND has dominated the national list of property best buys, with four regions prominent in the top 10.
The latest Hotspotting National Top 10 Best Buys report names Moreton Bay, Sunshine Coast, Redcliffe and Townsville property markets as ones to watch. Hotspotting founder Terry Ryder said the areas selected were “the cream of the crop’’ and among the best locations for property investors who were seeking capital growth.
Mr Ryder said each of the regions had three, four or more of the core things needed to help drive property price growth. “We expect them to show growth not only in 2017 but well beyond,” he said. “They are all locations we expect to show steady growth over the longer-term.’’
Mr Ryder said he selected the Moreton Bay region because it had affordable housing, there was about $980 million in spending on major new infrastructure and a new university precinct. He said four of the core suburbs in the region had chalked up more than 390 house sales in the past 12 months.
The Sunshine Coast made the list for its strong population growth and massive infrastructure spend.
Mr Ryder identified the $2 billion University Hospital, $2 billion light rail proposal, $5 billion residential development, Oceanside Kawana, and upgrades to the Sunshine Plaza and the airport. “Nothing supports property price growth like major new infrastructure, which generates jobs, economic activity and improved amenity for residents,’’ he said.
“The Sunshine Coast market in 2014 returned to growth for the first time in six years. Having previously been hampered by a struggling tourism economy, an oversupply of dwellings and poor affordability, the coast moved into a strong growth phase, which continued in 2015 and 2016,’’ he said.
Mr Ryder said a couple of things were helping the market – the tourism industry was stronger, there was a better balance between supply and demand, and previous price drops had made the market more affordable.
Redcliffe with its affordable properties and infrastructure also made the national top 10 list. Mr Ryder said the area had a revitalised image since the rail link was completed which had been a “game changer” for real estate on the peninsula. “The market is responding, with some suburbs delivering strong price growth in the past year,’’ he said.
While news around the property market in Townsville has been pretty dire in recent years, Mr Ryder said it was one to watch. He said there was a $2 billion military expansion on the cards, mining projects bubbling away and a strong, diverse economy. “Townsville ranks among the sturdiest regional economies in Australia,’’ he said.
“We always seek economic diversity in a property investment location and Townsville has more than most regional cities. It has strong elements of government administration, education, defence, resources, health, tourism and manufacturing – plus an export port.’’ Mr Ryder said after mixed fortunes in the past couple of years, it was now ready to move forward.
He said Queensland was starting to feature more prominently in his regular Best Buys list as Sydney and Melbourne markets came off the boil. “Markets are moving on,’’ he said.
“All indicators are that Sydney is well past its peak and starting to fade. Melbourne to a lesser extent also. We think that the other cities are actually rising as Sydney and Melbourne are easing.’’ Mr Ryder said it wasn’t just lifestyle factors behind the predicted growth in the Queensland regions.
He said it was a combination of factors. “Lifestyle is great but by itself it doesn’t normally drive markets higher,’’ he said.
Mr Ryder acknowledged that if you looked at Townsville right now, at the current numbers, you wouldn’t want to buy there. “We are suggesting that the future is a lot better,” he said. “There are some big events coming up in Townsville in terms of infrastructure.’’
Source: The Weekly Times