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30 investor hotspots for under $700k
Competition for properties at the affordable end of the market has been sky-high, with investors chasing strong returns at low prices and first home buyers looking to work their way onto the property ladder.
Discover Buyers Agency principal Kane Dury said that recent property data had created a clear picture of a lack of the correct supply for investors to target.
“Recent data confirms exactly what we’re seeing across our client base – that frustrated investors can’t find a home that matches their criteria,” Dury said.
He said that nearly half of all investors were focused on properties valued below $700,000, despite this segment accounting for only 30 per cent of dwellings nationwide.
He added that the successful investors would be those who were strategic about identifying where housing fundamentals and economic drivers were doing the heavy lifting.
“Investors who understand where to look can still build meaningful wealth at this price point, provided they are willing to think beyond the capital city postcode.”
“The conversation about property has become so fixated on capital city medians that a huge cohort of everyday investors has been left with the impression that the door is closed. It is not closed.”
While investors were looking to target homes under the $700,000 price tag, Dury said the type of asset was just as important as the location.
He said that new and off-the-plan homes were almost always priced so that investors paid a premium to cover the developer's margin, sales commission, and marketing costs, while existing homes didn’t carry the same premium cost.
“They have a rental history, genuine comparable sales data, and they sit in neighbourhoods where the infrastructure, like schools, hospitals, transport and retail already exists,” he said.
“That is where long-term capital growth comes from.”
Additionally, Dury said that it was important to remember that investors should never adopt a one-size-fits-all approach.
“A location that is right for a 30-year-old PAYG investor building a first portfolio is not necessarily best for a 50-year-old trying to replace an income in retirement,” he said.
“The $700,000 price point is the starting reference, but any investment plan must be bespoke to the investor themselves.”
After analysing the data, Dury has identified five suburbs in NSW, Queensland, Western Australia, South Australia, Victoria, and the Northern Territory that present viable investment opportunities for buyers with a budget of $700,000.
“These are established communities with real economic bases, genuine rental demand and housing stock that has stood the test of time.”
According to Dury’s analysis, the small rural town of Mount Morgan, south of Rockhampton, was the most affordable of the anticipated hotspots, with a median price of just $353,000 and boasting a 5.23 per cent yield.
He said the town held benefits for investors, with tight supply and community-scale demand underpinning performance.
Here are the top 30 suburbs for assets under $700,000:
NSW
Ashmont, Wagga Wagga – $505,000
Oxley Vale, Tamworth – $603,000
Muswellbrook – $680,000
West Albury – $648,000
Hamilton Valley, Albury – $659,000
Queensland
Condon, Townsville – $687,000
Wulguru, Townsville – $642,000
Mount Morgan, Rockhampton – $353,000
Norville, Bundaberg – $638,000
Crow’s Nest – $692,000
Victoria
Armstrong Creek, Geelong – $686,000
Newcomb, Geelong – $639,000
Broadmeadows, Melbourne – $647,000
Fraser Rise, Melbourne – $685,000
Morwell, Latrobe Valley – $441,000
South Australia
Eyre, Adelaide – $641,000
Hillier, Adelaide – $639,000
Callington – $689,000
Mount Gambier – $604,000
Mannum – $602,000
Western Australia
Medina, Perth – $639,000
Armadale, Perth – $678,000
Collie, Bunbury region – $566,000
Beachlands, Geraldton – $579,000
Spalding, Gearldton – $504,000
Northern Territory
Alawa, Darwin – $687,000
Anula, Darwin – $679,000
Moil, Darwin – $680,000
Wagaman, Darwin – $633,000
Malak, Darwin – $631,000
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