ACT reports progress of ‘Better Suburbs’
The ACT government has delivered an update on its “Better Suburbs” plan, detailing the headway that has been made to...
Seven suburbs which could deliver investors nation-leading capital growth have been identified in a new report.
Six property experts and commentators have selected the 50 suburbs across the country which are primed to deliver investors the best returns in 2015 for Smart Property Investment’s annual Fast 50 report – with two hailing from South Australia and a further five in Tasmania.
Tasmania’s appearance in the report marks a stark turnaround from last year, when no suburbs in the state made the cut.
In compiling the list, SQM Research’s managing director Louis Christopher – one of the six expert panellists – said parts of the Tasmanian market could be on their way to recovery.
Mr Christopher warned that the Hobart economy still has long-term issues, but said investors who do their due diligence, and stick to houses, could do well in this suburb in the year ahead.
In addition, Mr Christopher said Hobart Central is set for a turnaround, with rents on the rise and signs of increased economic activity and development. He advised investors to target units in the state capital’s inner city, but reiterated that the biggest risk investors would face in the region remains the state’s long-term economic prospects.
“Although there are more social issues and unemployment, the yields on offer make these two suburbs very attractive,” he said.
He said investors should try to nab a property for under $140,000 in these suburbs in order to maximise rental yields, but warned that timing is crucial in Tasmania.
“When the Hobart market goes quiet, it shuts off completely, so market timing is crucial for purchasing, as well as selling,” he said.
Hotspotcentral’s Michael Fuller selectedsaying it was an affordable option compared to neighbouring suburbs and offered strong yields.
In South Australia, Destiny Financial’s Margaret Lomas said Salisbury would be a market leader.
She said low land supply and ongoing gentrification are set to drive prices higher. Investors who purchase in the mid-$200,000s should be able to secure strong returns, according to Ms Lomas.
Mr Fuller also selected Marden and said “the long, dry patch in terms of growth seems to be about to end” for the suburb.
He said Marden recently experienced “a perfect auction clearance rate” as well as “very high rental growth over the past 12 months and a large number of people showing interest in the market compared to the number of properties available” – which all points towards imminent capital growth.