“We keep hearing that Australia’s housing boom is over,” says TODAY co-host Karl Stefanovic “but there are still plenty of places where property is hot, hot, hot.”
If you’ve been waiting for some guidance on where to buy your future home or that perfect house to flip, Money Magazine has released its annual list of property hot spots, and TODAY spoke with editor, Effie Zahos, to break down the top picks by state.
Here are the areas booming across the country:
“Queensland is a state of contrasting fortunes… Brisbane prices haven’t moved too well over the past, but it’s going to be a better year for them.
Zahos shows TODAY hosts Carl and Georgie three Brisbane suburbs that offer strong forecasts and good yields, with median house prices under $500,000. Watch the video above for details.
“If you’re looking to get into the Brisbane market, Algester is a top pick by Hot Spot,” Zahos explains, going on to say it’s three-year forecast is 15 percent, with yields around 4.4 percent.
New South Wales
The NSW market is cooling, says Zahos, “definitely, it’s cooling, definitely, it’s going to do single-digit numbers.”
In fact, she explains Hot Spot is saying, “it’s going to go into zero or negative return in some areas.”
Don’t panic, however, as “we’ve still got population, we’ve still got infrastructure” Zahos explains.
She discusses Cessnock, East Maitland and Toronto as “getting the ripple effects from Newcastle” with yields around the four per cent mark, growth around 20 to 25 per cent, and median property prices also under $500,000.
Zahos says Melbourne is following Sydney as far as prices cooling, but it’s the surrounding areas where Hot Spot is laying its sights.
“Ballarat East is really doing well because of the infrastructure, transport links to Melbourne,” advises Zahos.
“With Melbourne, it’s the outer areas where you’re going to find value,” says Zahos. Although Stefanovic isn’t so sure about suburbs 20kms+ from the CBD due to Melbourne’s “significant” traffic issues.
“South Australia’s really good in the sense its economy is doing well,” says Zahos. “It’s jobless rate has been the lowest for five years.”
Zahos reiterates how important infrastructure projects and a strong economy are to whether an area can give you a successful investment opportunity.
One such suburb is Port Augusta. “[Property is] less than $200,000 and billions are being poured into energy projects [there].”
“Finally, things are on the up in Perth” remarks Gardner, and Zahos agrees.
“We’ve had four years [where it’s] been really tough for Perth,” Zahos explains. “It’s relied on resources, but we’re seeing a turnaround.”
“That market’s going to be driven more by locals than investors, and we’ll see a movement in a positive director for the first time in a long time.”
Zahos highlights Edgewater as a smart opportunity, where “they’ve got the recipe for success: an expanding hospital, great uni’s, shopping precinct” and the median house price is $520,000.
Now, all you have to do is zone in on one of these areas and start researching where you dream renovation project is going to be.