1 minute read

Five areas to watch in 2020

Five areas to watch in 2020

by Cameron Micallef | February 13, 2020 | 1 minute read

Four cities and one regional area should be top of property investors’ mind, with new research showing they are the top picks for 2020.

February 13, 2020

Results from InSynergy Property Wealth Advisory identified Brisbane, Adelaide, Canberra, PerthPerth, TAS Perth, WA and the SunshineSunshine, NSW Sunshine, VIC Coast are locations that could see strong price growth this year.

Each location has been picked because they had strong market fundamentals that would lead to property price performance in the years ahead, InSynergy chief property investment adviser Richard Sheppard said.

Over the next six to 10 years, the most robust markets could rise between 80 and 120 per cent, while also returning higher yields at the start of each cycle, he said.

“However, the worst-performing markets could see prices slide by up to 20 per cent over the same period, which means choosing the wrong location could cost you dearly.”

Mr Sheppard believes prices will start to firm in these locations sooner rather than later.

“I’m concerned, though, that the recent price growth in Sydney and Melbourne will falsely entice investors back to those overpriced markets, when I don’t believe the current supposed upswing will last long,” he said.

“The only exception would perhaps be units in Melbourne as they are so much more affordable than houses, as well as having one of the biggest price differences between houses and units we have ever seen in Australia.”

The recent increase in median house prices in Sydney and Melbourne were linked to higher-priced properties selling, rather than market momentum, he said.

“It really is the last gasp from the boom that ended prematurely a few years ago, mainly because of tighter lending conditions,” he said.

“Once those buyers have run out of puff, and money, I believe median prices will return to levels consistent with soft market conditions.”

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Five areas to watch in 2020
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