Australia’s top 10 emerging apartment markets
The investment prospects of apartments are improving as Australians increasingly embrace life in high-rises.
According to Hotspotting, a number of factors have contributed to the apartment market gaining speed in key investment metrics, as they have outperformed standalone houses this year with faster growth in rents, better price growth rates for much of the past 12 months and a growing share of new dwelling approvals.
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“It’s not just about affordability – although that plays a big role in our largest cities – but our population is simply embracing apartment living more because of the opportunity to reside in more desirable locations as well as having easy access to lifestyle precincts,” Hotspotting’s director Terry Ryder said.
“Developers have also been constructing more owner-occupier stock, such as three- and four-bedroom apartments, as well as offering superior resident facilities such as rooftop and BBQ areas, infinity pools and spas, private dining rooms, and even the complimentary use of vehicles for those who don’t have transport,” he added.
The firm has just released its analysis of the 10 locations offering great investment potential for investors over the next six months. They are:
- Annerley - Brisbane City, Qld
With median unit prices sitting at $500,000, this historic Brisbane suburb is adding high-density to the mix.
- Belconnen - Canberra, ACT
The median price for a Belconnen unit rose 7 per cent in the 12 months to May 2022, but still offers an affordable entry point at $490,000.
- Clayton - City Of Monash, Vic
The suburb’s median price for units is on the steeper side at $730,000, but average rental yields of 4.1 per cent offer promising returns for investors.
- Dicky Beach - Sunshine Coast Region, Qld
Buyers can nab a slice of the Sunshine Coast’s seaside living for an average of $620,000 in Dicky Beach.
- Gymea - Sutherland Shire, NSW
A median unit price of $885,000 in Gymea provides proximity to numerous bays and beaches based on Port Hacking and the Georges River, as well as the Royal National Park.
- Kensington - City Of Melbourne, Vic
An inner-city Melbourne apartment can be found in the city’s cafe-laden Kensington neighbourhood, where units cost an average of $550,000.
- Mitchell Park - City Of Marion, SA
Mitchell Park offers a great market entry point with units sitting at a median $405,000.
- Southport - Gold Coast City, Qld
Infrastructure introduced for the 2018 Commonwealth Games has left Southport well-supported now and into the future. Units in the Gold Coast suburb go for an average of $505,000.
- Stanmore - Inner West Sydney, NSW
Acquiring a unit in Sydney’s well-connected hub of Stanmore will set buyers back roughly $765,000.
- Yorkeys Knob - Cairns, Qld
Find affordability in Cairns’ Yorkeys Nob, where apartments sit at a median $305,000.
