With property markets heating up across the country, real estate website Onthehouse.com.au has released research from Residex showing the suburbs around Australia that present the top investment opportunities for residential property buyers.
The findings show that savvy investors are targeting outer city regions, as they continue to deliver strong growth prospects for astute investors based on rental and capital returns. While New South Wales continues to dominate returns charts, Australia’s top suburb is in Queensland.
“There’s been a lot of noise in the media recently regarding the possibility that markets are overheating, especially in major metro areas like Sydney and Melbourne,” says John Edwards, consulting analyst for Onthehouse and founder of Residex.
“However, with interest rates still low, investors who do their research will find some very attractive options. One of the oldest tricks of the trade that buyers shouldn’t forget about is looking for the worst house on the best street. Renovating a property can add immediate value if it’s done right.”
Calculated from rental yields and five year capital growth predictions, with industry surroundings, confidence ratings and employment opportunities taken into consideration, Onthehouse have identified 10 top suburbs for investor returns in Australia:
|
Suburb |
Dwelling Type |
State |
Residex Median Value |
Residex Median Rental Yield |
Predicted Growth Average % p.a. |
Total Return |
|
Morayfield |
Houses |
QLD |
$305,000 |
5.51% |
10+% |
15+% |
|
Mount Annan |
Houses |
NSW |
$465,500 |
5.65% |
10+% |
15+% |
|
Sanctuary Point |
Houses |
NSW |
$252,000 |
5.66% |
10+% |
15+% |
|
Karabar |
Houses |
NSW |
$457,500 |
5.61% |
15+% |
15+% |
|
Berkeley |
Houses |
NSW |
$303,000 |
5.92% |
9+% |
15+% |
|
Katoomba |
Houses |
NSW |
$335,500 |
5.63% |
9+% |
15+% |
|
Ngunnawal |
Houses |
ACT |
$408,000 |
5.78% |
9+% |
15+% |
|
Seville Grove |
Houses |
WA |
$360,000 |
5.61% |
9+% |
15+% |
|
Clarkson |
Houses |
WA |
$393,500 |
5.82% |
9+% |
15+% |
|
Moss Vale |
Houses |
NSW |
$383,000 |
5.60% |
9+% |
14%+ |
Residex models also drill down to a street level, with data suggesting that Morayfield’s Brewers Rd in QLD offers the best opportunity to profit from home renovation. In NSW, Mount Annan’s Commelina Drive also offers exceptional renovation opportunities.
“While we have full confidence in our statistical models, it is vital that the data is paired with insights and local knowledge. Our models have indicated that these areas are the top picks of markets we think are going to perform well – but only by building personal knowledge can investors really make an astute purchasing decision,” says Edwards.
