How to make a motza: Where to buy property for long-term gains
Keen to make a motza? These are the highly sought-after areas in Queensland with great potential for long-term capital gains.
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THE lure of a luxury lifestyle and a land shortage is driving demand for homes in the Gold Coast’s new hotspot suburbs and increasing their investment appeal.
When it comes to buying property that will pay off in 20 years to come, industry experts say a supply shortage, buyer demand and generational change are the key factors to consider.
Realestate.com.au chief economist Nerida Conisbee said it was difficult to predict which suburbs would experience the highest house price growth two decades from now, but there were factors househunters should consider when looking at where to invest for the long-term.
Ms Conisbee said buyer demand was often a good indicator of future house price growth.
“It’s not a strict rule, but it does often come down to supply and demand,” Ms Conisbee said.
“So, those suburbs with high levels of search activity (on Realestate.com.au) relative to properties available often see growth.”
Palm Beach, Burleigh Heads and Burleigh Waters are the three most in-demand suburbs in the state’s regions, with many other Gold Coast locations also popular with potential buyers.
Ms Conisbee said suburbs at the southern end of the Gold Coast and in northern NSW would likely continue to increase in demand and benefit from further price growth.
“The Gold Coast has a land shortage so that’s going to keep prices more elevated than on the Sunshine Coast, I’d say, because it has tonnes of land,” she said.
Ms Conisbee also suggested looking at the areas where the younger generation was moving.
“As a general rule, I think it’s wise to look to where young people are moving because they are good predictors of (house price) growth over the long-term,” she said.
In Brisbane, Chandler, Windsor and Gordon Park are the top three most searched suburbs by buyers, according to Realestate.com.au.
Windsor, in the city’s inner north, also recorded the biggest rise in its median house price over the past 20 years — jumping from $183,000 to $1.08 million.
So keen were Emma and Chris Mackenzie to secure a home in Windsor that they employed a buyer’s agent to help them.
“There definitely was reduced stock during COVID, but as we learnt, properties in the inner north are tightly held,” Mrs Mackenzie said.
“There isn’t a lot of choice for buyers as families stay long-term in these areas for the schools, community and short commute to work.
“There is also the migration pressure from interstate and those returning from overseas due to the pandemic.”
The Mackenzies had been seriously looking for a property in the area for three months before finding a Queenslander family home in Windsor, which is also sought-after school catchment.
“We definitely noticed that it was quite competitive in the sought-after areas, near good schools, public transport and parks,” Mrs Mackenzie said.
Ms Conisbee said buying a house in a blue-chip, inner city suburb (if finances permitted) — even if it was the worst house in the street — would likely also be a good investment for the long-term.
“But who knows? Twenty years from now, everyone might want to live in regional Australia because of COVID-19!” she said.
In fact, Propertyology head of research Simon Pressley believes regional Queensland property markets stand to benefit from the impact of COVID-19.
“From a financial performance perspective, COVID is the final nail in the coffin of apartments right across the board,” Mr Pressley said.
“Several months of COVID-enforced isolation is more than long enough for people to create new habits.
“Moving forward, Propertyology anticipates that there’ll be increased demand for more space, for neighbourhoods with quality outdoor exercise options, smaller mortgages, and a closer connection with nature.”
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With this in mind, Mr Pressley said he believed Cairns and Townsville had the best medium to long-term investment potential.
“Their respective major project lists include lifestyle enhancements, several exciting projects in respect to economic development, their proximity to Asia is a big plus, housing is incredibly affordable, and supply is already tight,” he said.
Mr Pressley said Cairns was a surprise employment growth champion nationally, with a 24 per cent rise in jobs from February 2018 to February 2020.
He said that was largely thanks to a construction boom linked to new hotels, urban renewal projects and the proposed redevelopment of the convention centre.
“The median house price grew 7 per cent last year, the vacancy rate is still low even with COVID-19, so it’s not the doom and gloom that our southern friends keep talking about,” Mr Pressley said.
“There’s also no reason why Hervey Bay won’t continue to attract a big portion of retiring baby boomers.”
MOST IN-DEMAND SUBURBS IN BRISBANE
Rank Suburb Postcode
1. Chandler 4155
2. Windsor 4030
3. Coorparoo 4151
4. Gordon Park 4031
5. Teneriffe 4005
6. Paddington 4064
7. Wishart 4122
8. Greenslopes 4120
9. Newmarket 4051
10. Indooroopilly 4068
11. Ashgrove 4060
12. Fairfield 4103
13. New Farm 4005
14. Dutton Park 4102
15. Mount Gravatt 4122
16. Shorncliffe 4017
17. Holland Park 4121
18. Red Hill 4059
19. Camp Hill 4152
20. Wilston 4051
(Source: Realestate.com.au)
MOST IN-DEMAND SUBURBS IN REGIONAL QUEENSLAND
Rank Suburb Postcode
1. Palm Beach 4221
2. Burleigh Heads 4220
3. Burleigh Waters 4220
4. Tugun 4224
5. Currumbin Waters 4223
6. Miami 4220
7. Tallebudgera Valley 4228
8. Witta 4552
9. Mermaid Waters 4218
10. Tallebudgera 4228
11. Varsity Lakes 4227
12. Sunrise Beach 4567
13. Mermaid Beach 4218
14. Currumbin 4223
15. Broadbeach Waters 4218
16. Moffat Beach 4551
17. Mooloolaba 4557
18. Elanora 4221
19. Mudgeeraba 4213
20. Eudlo 4554
(Source: Realestate.com.au)
* This data is provided by licence from realestate.com.au Pty Ltd and is current at the time of publication. realestate.com.au Pty Ltd does not make any warranty as to the accuracy, completeness or reliability of the data nor accept any liability arising in any way from omissions or errors.