There’s no doubt that the rapid growth in property prices during the past 12 months has started to moderate.
You only have to look at the latest CoreLogic RP Data results to see that even and Sydney and Melbourne are now recording slower price increases.
While talk of an extensive fall in prices has become more prevalent in the national media lately, it’s important to note that there hasn’t been any evidence of a widespread downturn.
Most markets around Australia are still enjoying some degree of growth from one month to the next.
However, if you believe there is a looming downturn and want to invest securely, you may want to consider the following safe havens.
These are areas that are largely protected from any sustained down turn thanks to their desirability, consistently high demand and relative affordability.
The suburb which is the standout for NSW is Rooty Hill, located 42 kilometres west of the Sydney CBD.
The area has a number of drawcards, including affordable units, a train station, good local schools, parks and a large sports facility.
Meanwhile, Gosnells (WA) and Rothwell (QLD) both include units which have a typical value just under $300,000 and healthy yields of 6.39% and 5.33% respectively.
While the areas outlined here should provide a high degree of security in an otherwise volatile market, they should still be purchased with a medium to long- term hold period in mind.
| STATE | SUBURB | TYPE | Typical value ($) | Stock on market (%) | VACANCY rate (%) | YIELD (%) |
| NSW | ROOTY HILL | U | 375014 | 0.1 | 0.88 | 5.7 |
| VIC | BALACLAVA | H | 885554 | 0.11 | 1.01 | 4.04 |
| ACT | KAMBAH | U | 347238 | 0.05 | 0.88 | 4.85 |
| WA | GOSNELLS | U | 299784 | 0.51 | 0.69 | 6.39 |
| QLD | ROTHWELL | U | 299753 | 0 | 0.75 | 5.33 |
Source: DSRdata.com.au
