This four bedroom Beachmere home in Brisbane’s Moreton Bay region went under contract for $282,500. Picture: Realestate.com.au
LATEST research has revealed the nation’s top real estate “ugly ducklings”, areas prime for growth that prove Australia’s affordability crisis is overrated.
Hotspotting.com.au founder Terry Ryder said strong affordability had seen the rise of star “ugly ducklings” – suburbs once considered unattractive “but which have the potential to transform into real estate swans”.
He said affordability was seen as a big national issue but it was really only Sydney that had massive problems for young buyers.
Hobart has the lowest prices, tightest vacancies and highest yields in capital city Australia, Mr Ryder said. .
“I think it’s a little overrated in terms as being expressed as national affordability crisis,” he said. “Obviously Sydney has a big problem in terms of young people getting into the market but in most of our cities there are affordable options for young people.”
His latest Hotspotting.com.au ‘Cheapies with Prospects’ report named five of the hottest areas for growth where properties were still “cheap” – all of which were outside of the CBD area.
“We’ve got a simple formula, the power combination for price growth which is affordability plus infrastructure plus jobs nodes equals price growth,” Mr Ryder said.
Queensland dominated the top five – with Moreton Bay and Logan City, South Australia’s Playford made the cut and Victoria got a look in with Casey City – but it was Hobart leading the pack.
“The property market in Hobart is rising as the Tasmanian economy improves. Hobart has the lowest prices, tightest vacancies and highest yields in capital city Australia,” the report said.
The Logan City region has the “power combination” of affordability plus infrastructure plus jobs, according to Hotspotting.com.au.
“The Moreton Bay LGA is now the busiest property market in the Brisbane metropolitan area, boosted by affordability, strong infrastructure and a growing local economy.
“Logan City, which bridges the gap between Brisbane and the Gold Coast, is an ideal fit for “the power combination” of price growth: Affordability plus infrastructure plus jobs.
“The Playford LGA is the fastest-growing area in South Australia, boosted by its supply of cheap housing options and proximity to multiple major employment nodes.
“Victoria’s most prolific population growth area is forecast to continue expanding and plays a major role in State Government planning for Melbourne growth and jobs.”
Mr Ryder said the vast majority of jobs were not in the CBD of the capital cities but in areas surrounding it some of which were showing the strongest growth prospects for property.
“The vast majority of people who live in metropolitan areas really have no reason to go to the CBD, they don’t work there, they don’t shop there. Unless you work in the CBD and the majority don’t, then being close to it is not relevant to a lot of people.”
