16/06/2009
High-yields produced by cash-flow positive properties maybe tempting right now, but it's important not to lose sight of the fact that only growth investments bring you the ultimate financial freedom in the long run. Nila Sweeney reveals top growth suburbs forecast to grow in value by as much as 50% over the next 3-5 years in part 1 of the two-part series
Focusing on capital growth at the time when rental yields are rising may seem counterintuitive. What's not to like with having extra cash in your pocket, right?
Having positive cash flow means you are able you to ride out the economic downturn easier as it provide that cushion to help you hold on to your investment.
On the contrary, high growth properties generally have lower return, so they tend to push you into the red as you subsidise the holding cost of your investment with other income than rent.
"Drawing on your own resources to support your investment property could be potentially dangerous in a downturn," says Louis Christopher, managing director of SQM Research.
However, focusing only on yield won't help you expand your portfolio to be able to build a substantial asset base to support a comfortable retirement.
"The truth is you need capital growth to do this, not cash flow properties," says Michael Yardney, director with Metropole Property Investment Strategist. "A lot of investors never get pass 1.5 properties. The reason they can't get more than that is that they can't save enough deposit out of cash flow. What you need is for your property to go up in value so you can borrow against it to buy another property. So if you're going for cash flow, you're taking a short term approach to what is a long term investment."
Luckily, with the right property, you can now have the best of both worlds: high growth and yields to boot.
"This is probably the first time in 17 years that you can actually get a combination of both. You get good growth properties in the area that are going to perform well over the long term and in the short term it's going to give you cash flow that in the past could never have expected. If you lock in interest rate when it's appropriate, your outgoing won't go up again as the economy moves on to the next pace of the cycle," says Yardney.
If you're looking to position yourself for capital growth, we've enlisted the help of Australia's top property experts to pinpoint the suburbs that could see strong growth over the next 3-5 years. The suburbs were selected based on their proximity to the city centre, waterfront, prime suburb or those areas undergoing gentrification. The suburbs also have to be affordable, still relatively undervalued, accessible via public transport and receiving government and public investments. The following are their recommendations.
Where to find massive growth over the next 3-5 years
Chippendale, NSW
Peter Koulizos, author of Top Australian Suburbs, believes Chippendale in Sydney has all the essential elements needed for strong capital growth over the next few years. "It's very close to the city, units are still relatively cheap and it's in high rental demand area being close to Sydney University. The university is very popular to international students even at the current slowdown, so it's recession-proof. Because it's close to the city, it's also an attractive location for workers in the CBD. It has a low vacancy rates and there are many older properties providing investors opportunity to add value through renovations," says Koulizos.
What to buy:
Units in wider streets that offer off-street car parking would be the best bet because the area is so compact. "If you can find a property where you can park your car next to your home, people will pay premium for that," says Koulizos.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Darlington, NSW
Located about 4km from Sydney CBD, Koulizos also picked Darlington as a high growth area due to its proximity to the city and to Sydney University. The suburb is well-serviced by buses and is popular among students and Sydney workers. Units are still relatively affordable. "Darlington features smaller period homes and has typical narrow inner city streets, so if you can find somewhere on a wider street and even better if it's a period home, you'd be laughing. The sheer number of students in the area means you have a strong and steady demand for rental properties. Investors going for growth should look at period-style homes that can be renovated to add value," says Koulizos.
What to buy:
Look for period style properties in the widest streets in particular parts of Abercrombie and Shepherd streets. "As with Chippendale, off-street car parking would boost property price," says Koulizos.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Camperdown, NSW
Being right next door to Sydney University and a short drive from Sydney CBD, Camperdown's growth is underpinned by strong demand from students and young professionals working in the city according to Koulizos. "You can practically walk from the Sydney CBD to Camperdown. It's a lively place with lots of nice restaurants and cafes. It's also close to Prince Albert hospital so you get extra rental demand from people who work in that hospital. There are also many Federation style cottages that investors can renovate to add value," he says.
What to buy:
Look for Federation style properties with off street parking to ensure strong growth
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Greenwich, NSW
Cameron Kusher, senior research analyst with RP Data is tipping Greenwich to grow strongly over the next 3-5 years. While unable to make growth prediction, Kusher says the suburb is well-positioned and has strong fundamentals for solid growth ahead. Situated on Sydney's lower North Shore, just 4 km from the Sydney CBD, the suburb is very strategically located close to major office markets and retail precincts at Crows Nest, North Sydney, St Leonards and Chatswood.
"Greenwich itself also enjoys elevation which affords properties excellent views and many units enjoy these views," says Kusher. "Greenwich units are generally older walk-up style units which in most instances have strong internal renovation potential and will lend to have a lower body corporate fees."
The suburb can be ac cessed via train found nearby in the adjacent suburb of Wollstencraft, while ferries can be taken from Greenwich Ferry Wharf to Circular Quay in the Sydney CBD.
Where to buy:
Look for units in elevated areas with views of the city
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Ultimo, NSW
Kusher also tipped Ultimo to outperform in the medium term thanks to its proximity to the Sydney CBD and relative affordability.
Situated approximately 2 km from Sydney CBD, Ultimo is a suburb which is well and truly dominated by unit development. However, Kusher says investors can still find converted factories and warehouses in the area.
"The rental market within the suburb is very strong due to the proximity to the CBD, the University of Sydney and Sydney TAFE. The strength is reflected in the current average gross rental yield if 6.4%," says Kusher.
Ultimo has an adequate shopping facility with majority of the retail outlets located in the Sydney CBD, Pyrmont and Broadway.
The suburb is accessible via the Sydney Light Rail Stations at Paddy's Market and Exhibition Centre as well as trains at the Sydney Central station. It's also right next door to the prime suburb of Glebe and walking distance to Darling Harbour.
Considering its close proximity to the CBD, Ultimo units are still relatively affordable at $360,000.
Where to buy:
Units overlooking Wentworth Park along Jones Street are the best bet
Maidstone, VIC
Peter Koulizos is also predicting strong growth ahead for Maidstone in Victoria by virtue of its close proximity to the city and affordability. "Maidstone is not the prettiest suburb at the moment because it's mostly a working class area and there are a lot of housing commission homes, but it's right next door to the biggest shopping centre in Melbourne - the High Point Shopping centre in Maribyrnong. The median price is well under the Melbourne average, and only 10 kms from the CBD, the suburb offers exciting opportunities for investors. Some parts of Maidstone also offer great views of the CBD and is accessible via trams and buses. There are also a number of multi-million dollar developments currently underway in Maidstone, which is a strong indication that the area is on its way," says Koulizos.
Where to buy: "Buy in areas with a view of the city, people pay premium for that," says Koulizos.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Braybrook, VIC
Like Maidstone, Koulizos also sees strong potential for Braybrook due to its proximity to Melbourne's CBD and affordability. "It's only about 11kms from Melbourne. Houses are under $300,000 and being that close to Melbourne is pretty good," he says.
"I think it will be targeted by first homebuyers because of the high concentration of homes in the area. It's currently undergoing gentrification, making it more attractive for buyers. Like Maidstone, Braybrook is a working class suburb that's currently undergoing gentrification. It's got two major shopping centres and is well-serviced by train and buses. However, you can't just buy anywhere in Braybrook and think you're going to do well. You need to stick to streets that already have nice housing and that already redeveloped."
Where to buy: Stick to the developed areas and look for houses overlooking the river or park
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Footscray, VIC
Koulizos still sees strong growth ahead for Footscray because of the proposed developments in the area. "Footscray has been designated as a transit city and principal activity centre as a part of the Melbourne 2030 Strategy. This means that this suburb is where the government is focusing on with their spending and therefore that's where the private sector will be putting their money as well. The suburb is multicultural and features universities and TAFE campuses. Footscray features a broad range of shopping and retail facilities. It's easily accessible via buses, train and tram. It's also sitting right next door to Seddon, which is currently undergoing gentrification. The Victoria University and Nicholson campus ensure continuous rental demand from students providing investors with healthy returns as well.
Where to buy:
Best place to buy is at the northern end of Footscray between the train station and Ballarat road.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
West Footscray, VIC
Being next to Footscray have major advantages to West Footscray says Koulizos. Like Footscray, West Footscray is also accessible, relatively affordable and next door to a developing suburb.
"The suburb has a train line, a tram and relatively close to Melbourne CBD. There's also a lot of government and private money being spent in Footscray which are beneficial to West Footscray as well," says Koulizos. "Located just 8 km from Melbourne CBD, I think the suburb is still quite cheap and undervalued. Like Footscray, it's also next to Seddon and Yarraville which have been gentrified and more expensive, which make West Footscray the more attractive. Being next to Footscray means it will benefit from the proposed government spending in the area."
Where to buy:
West Footscray is more industrial than Footscray so it's important to pick the right location here. Best area to buy is the northern section of West Footscray says Koulizos
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Redcliffe, QLD
Peter Koulizos and Cameron Kusher of RP Data both picked Redcliffe as an area poised for strong growth over the next years due to its affordability and attractive lifestyle.
Located approximately 30 kilometres north of Brisbane City and sits on a waterfront peninsula, the suburb has a relatively affordable median price compared to suburbs situated an equivalent distance from the CBD but located away from the ocean.
Redcliffe features lots of restaurants and shops situated both within the suburb and in neighbouring suburbs. "Many houses in Redcliffe have substantial renovation potential which is a great way to add to the capital value of the property," says Kusher.
Koulizos says Redcliffe remains one of the cheapest waterside suburbs in Queensland that's why it's currently targeted by developers. "There's a lot of construction near the waterfront. The Queensland state government has also designated Redcliffe as a major activity centre which will see facilities and infrastructures upgraded. The construction of another bridge means that it's now easier to get to Redcliffe and will dramatically reduce travelling time to and from Brisbane," he says.
Where to buy:
As close to the beach as possible around the southern end because it's been rejuvenated by the council
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth* because it's coming from a very low base
Woody Point, QLD
Also located on the Redcliffe Peninsula, Woody Point has all the fundamentals for strong growth ahead according to Koulizos. Like Redcliffe, Woody Point is still relatively cheap for a seaside suburb. Being next to Redcliffe is a big advantage in terms of the ongoing development and infrastructure spending there. Developers are also starting to move in with apartment buildings being constructed in the tip of the Peninsula," says Koulizos.
Where to buy:
Buy as close to the waterfront as possible and on the northern tip of the esplanade because you have the elevated view of the water
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth* because it's coming from a very low base
Clontarf, QLD
Another suburb on the Redcliffe Peninsula, Clontarf is also poised for strong growth over the next 3-5 years according to Koulizos. "Clontarf is a working class suburb and has remained one of the cheapest beachfront suburbs in Brisbane. The ongoing government and private investments in nearby Woody Point will have a positive impact on Clontarf," says Koulizos.
Where to buy:
Buy as close to the beach as possible
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth* because it's coming from a very low base
Hindmarsh, SA
"One of the reasons I'm keen on Hindmarsh and West Hindmarsh is that the government is extending the light railway line to Hindmarsh this year which will make this small suburb even more in demand," says Koulizos.
A 'Park n' Ride' station is being built near the Entertainment Centre which will link with the proposed light railway extension connecting the city to Hindmarsh. So people can drive to Hindmarsh, park their car in Ryde Carpark and then hop on a tram to go to the city according to Koulizos.
Hindmarsh is only 2 kms from Adelaide so it's walking distance to the CBD. Koulizos says the government has just bought the largest factory in the light industrial area along Port Road. "The government has already bought the land and they will turn it into a transit oriented development. Hindmarsh is a bit like Subiaco in Perth, with that gentrification happening across the road, you can only do good for suburbs like Hindmarsh and Thebarton," he says.
Where to buy:
Stick in the residential areas because Hindmarsh have some light industrial areas. The closer you are to Port Road, the better. You don't want to be in Port Road because it's very noisy but the closer you are to Port Road the better off you will be.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth*
West Hindmarsh, SA
Sharing similar growth drivers with Hindmarsh, West Hindmarsh will also see strong growth over the next 3-5 years in Koulizos' view. However, unlike Hindmarsh, West Hindmarsh is mostly a residential suburb with there's hardly any industrial area, although it's adjacent to an industrial suburb, Welland. "It's got lovely character homes and period style cottages. I think the suburb will see strong growth because Hindmarsh has a lot of improvement earmarked both by the government and private investors. With the increased interest from the transit oriented development across the road, demand can only go up. You would see Hindmarsh become a very favourable location among young professionals because it's so close to the city. You'll see gentrification such as warehouse conversions and trendy backyard fixtures which makes the suburb more appealing to young professionals whether single or couple who are working in the city," says Koulizos.
Where to buy:
North of Port Road
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth*
Thebarton, SA
Cameron Kusher of RP Data and Peter Koulizos both picked Thebarton as a suburb with strong growth potential. Located just 1 km to the west of the Adelaide CBD, Thebarton is a typical inner city suburb that's undergoing gentrification.
"It's very close to the beach and right next door to the prime suburb of Mile End. Thebarton's median house price is very affordable. For a suburb that's next door to the capital city, that's extremely attractive," syas Koulizos.
Demand for accommodation from students of Adelaide University and University of South Australia also ensures healthy rental income for investors. The area is also attractive to young professionals who can afford to pay premium rents.
"The suburb obviously enjoys the benefits of amenity due to it being located to the Adelaide CBD. The suburb is a home to quality character housing which often sits on decent size land and which has strong potential for renovation," says Kusher.
Where to buy:
Look for bigger blocks that can be redeveloped and focus on the southern end of Thebarton, which is next door to the prime suburb Mile End.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Torrensville
Like Thebarton, Torrensville is also within walking distance to the Adelaide CBD, which makes it desirable and well-positioned for strong growth in the future according to Koulizos.
While an older suburb, Torrensville features lovely period style homes on large blocks of land. The suburb also features a small industrial section and good shopping areas along Henley Beach Road. There are also plenty of restaurants in this main road ranging from Italian to Indian and African cuisines. The suburb is also well-serviced by buses running along Henley Beach Road and Ashley Street.
"The other beauty of Torrensville is that the main road going through it called Henley Beach Road is now a cosmopolitan strip, much like King's St in Newtown, Sydney," says Koulizos.
Where and what to buy:
Buy close to the city because that's where you find the highest concentration of character homes
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 40% growth*
Victoria Park, WA
Perth's inner city suburb, Victoria Park has strong potential to grow over the next 3-5 years according to Koulizos. "Despite being so close to the city, the suburb is still relatively affordable," he says. "There are plenty of period style homes along tree-line streets. It has a similar feel to Subiaco, but not the high price tag."
The suburb has good train access, a vibrant café strip and lovely character homes. Some areas offer views of the city the same way as you get from Erskineville in Sydney. Victoria Park is accessible via train and bus to and from the CBD.
Where to buy:
Buy in elevated areas where you can get views of the city.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 25% growth*
East Victoria Park, WA
Located about 6 km from Perth CBD, Koulizos also tips East Victoria Park to grow strongly in the next few years. Having similar characteristics as Victoria Park, East Victoria will see growth underpinned by its relatively affordable property prices and its proximity to the city. It's also fairly close to the beach - only 9km and has extensive shopping amenities. It's easily accessed to and from the city via buses and trains.
"The suburb has lively café and restaurant strip. The other bonus is that you've got Curtin University and TAFE campuses in the area, which means high demand from students," says Koulizos.
What to buy:
Look for period style homes that are elevated so you get good views
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 25% growth*
Glebe, TAS
Located only 1km from the city and 1km from the sea, the small suburb of Glebe has the right fundamentals for growth according to Koulizos.
"Investors can take advantage of the many period style offering in the area which provide opportunities to renovate and add value in a relatively short time.
What and where to buy:
Look for period style homes with a view of the city or the sea. Look around Allambee Crescent, Aberdeen, Bayley and Shoobridge streets because of their views and style of houses in these streets
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 35% growth*
North Hobart, TAS
Also right next to Hobart, North Hobart is tipped to record solid growth in the next 3-5 years. Located just 1km from the city and 1km from the sea, North Hobart has similar feel with that of Carlton in Melbourne and Leichhardt in Sydney according to Koulizos. "It has a very cosmopolitan feel with restaurants, cafes and eclectic mix of people living in the area. The main attraction of the suburb is Elizabeth Street which is also known as 'eat street.Due to its high concentration of period homes, there's a great opportunity for investors to grab a cheap house and renovate it to boost value quickly," he says.
Where to buy:
Buy within walking distance to Elizabeth Street. Best streets to buy include Newdegate and Browne Streets
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 35% growth*
South Hobart, TAS
Koulizos also tips South Hobart to grow strongly in the medium term thanks to its advantageous location being situated just 1km from the city and 1 km to the sea. "It's also right next door to prime suburbs of Sandy Bay and Battery Point - probably the two most expensive places to buy a property in Hobart. This makes South Hobart very attractive because it's still affordable compared to these prestige suburbs and also has similar growth drivers. The other bonus is the proximity to the University of Tasmania which is popular with Australian and international students because fees are cheaper than most. You also don't need a high a score from HSC to get in," says Koulizos.
Where to buy:
Focus on period style homes on wide streets with elevated views
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 25% growth*
* Peter Koulizos own forecast
Bronte, NSW
Bronte has the full package, says Pino Tedesco, director Metropole Property Investment Strategists. "In this tightly held area, Bronte has a fantastic beach and surrounding beaches such as Tamarama and Bondi. It's got great cafés, restaurants and shopping centres. Bronte also has a great school and it's so close to the city," he says.
Bronte is 7km east of the CBD, with plenty of buses direct to the city or the 378 along MacPherson Street to Bondi Junction and its fast train service to the city.
"It's got great historical capital growth and 5.3% - 5.5% gross rental yield's being achieved for properties we are currently purchasing for clients. Bronte being a typical Sydney beachside residential suburb, everyone wants the piece of the pie."
What to buy:
Units are more affordable says Tedesco. "Look for contemporary apartments where young executives and couples flock as they are more attractive.
Best streets to buy - Bay view, Violet, Read, Yanko, Hewlett, Scott, Dickson, and Darling streets. "Walking distance to the beach is the key," says Tedesco.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Leichhardt, NSW
Tedesco also picked Leichhardt as another growth suburb due to its vibrant lifestyle and close proximity to the Sydney CBD. Leichhardt is only 6.5km west of the CBD, and takes about 20 minutes by bus to get in the city. The suburb can also be accessed via light rail in nearby Lilyfield, or the fast train services from Stanmore and Petersham on the southern boundary of the suburb.
"Leichhardt features extensive shopping facilities and lively restaurant and café culture, thanks largely to the Italian community that is the suburb's original soul. It's got easy access to the waterfront and to the Sydney CBD. The suburb has great historical capital growth and the properties we are currently purchasing for clients are achieving between 5.3% and 5.5% gross rental yield," says Tedesco.
Matthew Tiller, analyst with PRDnationwide also tipped Leichhardt to outperform in the medium term. "I think Leichhardt will always be popular and still reasonably cheap compared to similar location in the eastern suburbs. I think the continuing increase in rents will force the people to buy rather than rent in the area and this will likely to push prices higher over the next few years," he says.
What to buy: Tedesco says houses are best "because you can add value to the older style Victorian semis therefore capitalising on the end value".
Best streets to buy - Allan St, Derbyshire Rd, Stanley
Average annual growth over past 5 years:
Forecast: Tiller is forecasting growth to be around 5-10 % in 2009-2010
Mosman, NSW
Tedesco picked Mosman as a growth suburb because of its proximity to the sea and attractive lifestyle.
"Mosman is essentially a collection of bays, coves and headlands running between Middle Harbour and Sydney Harbour. Its desirability as a residential suburb can be traced back to early Federation, and thanks to a century of stable ownership, much of its original architecture has been maintained," says Tedesco.
Mosman is only 5km away from the Sydney CBD on the northern side of the Harbour. It's a quick drive via either the bridge or Harbour tunnel, and there are plenty of buses. If you're close to the Harbour, there is also an option of taking the ferry from Mosman Bay to the city.
What to buy: Units due to its affordability. Tedesco says units make a good entry point into the market. "They are currently good value for money and easy to rent," he says.
Where to buy: Raglan Street, Stanton Road, Esther Road, Middle Head Road and Queen Street
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Salisbury, QLD
Cameron Kusher of RP Data picked Salisbury as a suburb with high potential for capital growth for its accessibility and proximity to the Brisbane CBD. Situated around 9 kms south of the Brisbane, the suburb has pockets of residential and industrial uses however both are clearly defined in their locations. It has its own train station and is serviced by a number of main roads, which provide good access to the suburb. "Salisbury's housing market has a dominance of post war homes and many of these properties are unrenovated with substantial scope for renovation," says Kusher.
Where to buy:
Focus on houses within walking distance to but not backing on to the main roads, train stations or busways. Buy close to the shops and schools and make sure you stay as far away as possible from industry.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Wooloowin, QLD
Kusher also sees strong potential for Wooloowin due to its proximity to the Brisbane CBD. Located just 7 km from the CBD, the suburb sits within a long established residential area of Brisbane.
"Wooloowin currently represents the most affordable unit buying within 10 kilometres radius of the Brisbane CBD," says Kusher. "The suburb is blessed with two train stations and is adjacent to Albion - a suburb which is seeing significant new development which will incorporate an injection of retail, commercial and residential aspect into the local area."
The unit offering is dominated by older style walk-up units which have the potential for internal renovation; the smaller stature and lack of facilities mean that Body Corporate fees are generally lower making these properties particularly appealing for first home buyers says Kusher.
Where to buy:
Look for older style units with strong renovation potential. Buy close to the shops and schools and within walking distance to the train stations.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Annerley, QLD
Kusher says Annerley has all the fundamentals for strong growth in the next few years and certainly worth watching.
The suburb is a long-established residential area located less than 5 kilometres south of the Brisbane CBD.
"The Annerley unit market is quite diversified with many older walk-up units, however; recent years have seen the injection of newer unit and townhouse also," says Kusher. "The suburb has significant retail strip found along Ipswich Road while additional retail areas are also found within the neighbouring suburbs of Woolloongabba, Yeronga and Fairfield. The suburb enjoys excellent access via Ipswich Road and the South-East Freeway while the proximity to the freeway means it also benefits from the South-East Busway."
Many buses also run to and from the city via Ipswich Road and nearby train stations are found at Buranda and Fairfield. The suburb also enjoys strong rental demand due to Princess Alexandra Hospital being located within.
Where to buy:
Look for units in the elevated areas along Annerley Road. Focus on properties within walking distance to but not backing on to the main roads, train stations or busways.
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Greenslopes,QLD
Kusher picks Greenslopes as a suburb with strong potential for growth thanks to its accessibility and affordable unit offering.
"It's a very well established residential area which has a substantial supply of units, many of which have been developed over the last 20 years. The unit offering is generally brick construction and walk-up style product meaning that Body Corporate fees are generally much cheaper than those which would be found for buildings with lifts," says Kusher.
Greenslopes is strategically located close to the Pacific Motorway and subsequently the South-East Busway. Many buses also service the numerous main roads within the suburb. The suburb has substantial strip retail within, particularly along Logan Road and within the Stones Corner precinct. Meanwhile the suburb also has two supermarkets and a number of restaurants.
Where to buy:
Buy close to the shops and schools and within walking distance but not backing on to the Pacific Motorway and bus ways
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Wollangaba, QLD
Jonathan Rivera, Colliers International residential research director picks Wollangaba as the next growth hotspot, possibly to even rival New Farm and South Brisbane.
"It will be the epicentre of residential living within the inner city over the next ten years," he says. "There are a few projects coming up. Developers are realising the potential of apartment living in Woolloongabba, with companies moving in to grab a piece of the action. Woolloongabba is very industrial at the moment, but I think it's going to change and I believe it's got high potential for growth."
Rivera adds that the suburb has recently come under the spotlight of the Urban Renewal Task Force, the same Council led team responsible for the rejuvenation of some of the industrial and tired looking suburb into a thriving and diverse community.
"Urban renewal and town planning changes have created a very liveable vision for Woolloongabba," said Mr Rivera. "There will be nothing like Woolloongabba again within a 10km radius of the CBD."
Unit prices have been headed skyward in the area and Rivera expects much more growth over coming years.
Where to buy:
Buy within walking distance to train stations and bus stops
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
Manly, QLD
Matthew Gross, managing director of National Property Research picks Manly, a suburb east of Brisbane as having solid potential for growth over the next few years.
"It's got access to Moreton Bay and views across the Moreton Island. It's a suburb that has really gentrified in the last decade, but clearly demand in the top end had come back so it's definitely worth looking at. Demand has been resilient. Look for properties that has something appealing that the market wants in the next 3-5 years when we're truly out of this recession. I think it's likely to experience good growth given that it's one that has fallen the hardest so far. It's proximity to Brisbane and Moreton Bay will also help underpin growth. It's got good transportation in terms of train and buses as well as a strong café community and good parkland. It's got all the requirements for the quality of life," says Gross
Where to buy:
Buy within walking distance to train stations and bus stops and focus on properties with views of the bay and park lands
Average annual growth over past 5 years:
Forecast over the next 3-5 years: n/a
