There are 50 suburbs around Australia this year expected to see stand-out results, according to a number of property experts.
Smart Property Investment took it to a panel of six leading property commentators and professionals and asked them for their top choices for investors over 2013.
Of all the states and territories, Queensland performed the most with 17 top picks. New South Wales and Western Australia both received 11 choices, and Victoria saw six picks. ACT failed to make the list, while South Australia and Northern Territory both had two suburbs tipped and Tasmania had one.
Australian property monitors’ Dr Andrew Wilson, Destiny Financial’s Margaret Lomas, SQM Research’s Louis Christopher, hotspotting.com.au’s Terry Ryder, Real Wealth Australia’s Helen Collier-Kogtevs and Positive Real Estate’s Sam Saggers all contributed to the list.
Queensland’s Toowoomba was picked by three of the experts within the report.
“Few places are better located than Toowoomba to benefit from the greatest force in the Australian resources sector: the LNG industry,” said Mr Ryder.
“The Surat Basin, just outside Toowoomba, is alive with gas-related activity, adding a major additional element to the city’s strong and diversified economy.”
Smart Property Investment’s editor, Phillip Tarrant, said that there was a growing trend of ‘affordability’ being a factor within the report. This reinforced the idea of investment opportunities located outside of capital city markets.
“Capital city markets have long been considered a safe and sensible investment option. However, a growing number of investors are turning to outer suburban markets because of their lower buy-in costs and tight vacancy rates,” Mr Tarrant said.
“Some of these locations, such as the Western Sydney suburbs of Blacktown and Penrith allow investors to enter the market at a reasonable price with the option of adding further value through cost effective renovations.
“There are some very attractive opportunities out there right now which are driven by local economic factors, housing supply and demand and demographic shifts. Add to that a cash rate of just three percent and there is great potential for investors who do their homework,” he said.
The Fast 50 February Special Issue of Smart Property Investment is currently on newsstands.