Yahoo Finance Top 5 property hotspots for less than $500k
Investors looking to turn a profit are pivoting towards affordable regions with upswing potential like Port Adelaide, new analysis suggests.
The analysis by buyers’ agency, Your Property Your Wealth, also throws cold water on claims NSW is an investor’s heaven with the state conspicuously absent from the list.
“Contrary to some people’s narrow viewpoint that Sydney and Melbourne are the only markets
in Australia, there are myriad locations where investors can secure affordable property,” director Daniel Walsh said.
“Not only do they have median house prices under $500,000 but they are also locations on the
rise because of fundamentals such as major infrastructure or population growth.”
The top five under $500k hotspots
These are the top investment locations under $500,000 according to the buyers’ agency.
Grovedale, Geelong Victoria
$467,000
Geelong’s robust economy will support Grovedale into the future, while Avalon Airport’s future as an international hub will also catalyse more than 200 jobs.
Wyndham, Vale Wyndham Victoria
$480,000
The suburb southwest of Melbourne has experienced strong growth as buyers took notice of its relative affordability.
In fact, its median house price increased by an impressive 17 per cent over the past year according to CoreLogic,” Walsh said.
Petrie, Moreton Bay Queensland
$440,000
The new university campus undergoing construction in Petrie will attract up to 10,000 students in its first year, 2020.
The Moreton Bay town is also set to see its population expand 40 per cent over the next two decades.
Raceview, Ipswich Queensland
$343,000
Raceview is also considered a growth area, with its population set to balloon to 500,000 by 2041. Currently it’s at 210,000.
Port Adelaide, Adelaide South Australia
$350,000
At only eight kilometres from the central business district, the median $343,000 price tag offers great value.
Then there are the billion-dollar defence projects set to inject money into the area.
The government is also revitalising the area with a $40 million State Government building, the redevelopment of the waterfront precinct and plans for a maritime attraction.
“You don’t have to spend $1 million to make a wise investment decision – in fact, you could buy
two properties for that price in these areas and benefit from the market upswing in the future,”
Walsh said.
Is population a good indicator?
According to another buyers’ agent, Simon Pressley of Propertyology, using population data to identify future growth spots is erroneous.
Population growth may be presented as an inexorable and smooth increase but the reality is different.
And property prices don’t have anything to do with population growth, he added.
“If they were [connected], how does one explain the rollercoaster annual changes in Sydney’s median house price (and every location in Australia) from one year to the next, even though the annual population changes are relatively smooth?”
Additionally, the best performing region in the year to August 2018, Moree Plains actually saw its population decline by 182 people to 13,408.
“For property investors, population growth data is a lagging indicator. It’s a byproduct of factors such as swings in employment opportunities, affordability, varying lifestyle choices and immigration policy.”
He said while population growth does play a role in property prices, it’s only one factor.
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