Australia's property markets staged spectacular gains over the past 12 months. And as Tim Lawless, RP Data national residential research director wrote in the latest issue of Your Investment Property magazine, there are still plenty of opportunities for those who want to get into the market.
"Owning property has become a strategic business," wrote Lawless. "No longer is it just about luck when it comes to buying a property. It's about knowing where to buy. I believe there are still opportunities for newcomers even if it means they have to reconsider their expectations of the ideal suburb. I believe that time and time again, research has proven that the location of a property has a very large bearing on the capital growth the property achieves."
For investors who can afford to buy into the premium end of a particular market, the capital growth can be exceptional, said Lawless. If you're looking to purchase property on the outskirts of a city, you need to be "strategic" when making purchases as the supply of property is virtually unlimited in some areas and the demand for these properties is often very low.
"Look for property with efficient transport links and retail facilities coupled with easy access to schools, healthcare and recreation spaces. An area where the population is likely to expand is also a good place to start. Governments use population growth statistics to designate where new infrastructure spending will take place," said Lawless.
The regions outlined below are all experiencing some of the strongest population growth in the nation. In addition, the rate of growth is increasing; meaning population inflows to these areas are still strong:
Melton/Wyndham in Melbourne's western middle ring suburbs:
This area is increasing in population by 11,600 people per annum and is strategically located within easy commuting distance of the Melbourne CBD.
Perth's Northern Metropolitan region:
Population increased by 10,825 new residents over the last financial year. If you're looking to invest in Perth, you need to be very strategic, and this high level of population growth is creating significant demand for housing. The coastal suburbs closest to the CBD are the best option.
The western suburbs of the Gold Coast:
Population jumped by 10,760 last financial year. This area isn't as high profile as the eastern coastal strip. However, the hinterland suburbs and communities within close proximity to the train line are in very high demand and also provide very affordable price points.
For the complete article and full list of affordable suburbs, read the latest issue of Your Investment Property magazine, on sale now.
