What regions are Millennials moving to?
The March quarter saw migration into regional centres from capital cities increase by 16.6 per cent, with this trend lar...
Investors have been warned about areas to avoid in the major capital cities by a new analysis from Herron Todd White.
“These new units are achieving premiums as a result of both local and overseas investors pushing demand but also developers taking advantage of buoyant property markets and government incentives for new property,” the report states.
“If these government incentives for local and international purchasers were to end or change, then the premiums that new stock can achieve may be affected and demand for new property may slide.”
The authors also warn against off-the-plan properties, semi-rural areas far from designated growth corridors and suburbs neighbouring current growth leaders.
“If you are looking at investing in an adjoining suburb to a new hotspot, be thorough in ensuring you are paying the rate for the suburb you are buying in and not paying a premium for the perceived benefits of the 'within walking distance of…' or worse, paying a premium for a hotspot suburb only to find that the local council has your new purchase as the perceived poor cousin and will not be changing the suburb name to suit a marketing campaign,” the report states.
“Generally, the least attractive areas suffer from similar problems such as the lack of community services and poor infrastructure support, especially public transport,” the report states.
In addition, inner-city apartments tend to be poor quality and may lose value as the oversupply worsens, the report warns.
A similar caution is issued for Brisbane’s inner-city areas where an excess of new apartments are being constructed, particularly the CBD, South Brisbane and .,
“The problem now is that with growing interest from out-of-town buyers, developers can stack up projects with smaller units that appeal to investors rather than owner-occupiers,” the report states.
“Unfortunately this market could see a glut of this style of attached housing with a basic standard of product specifically marketed to those from interstate or overseas.”