‘Methy-bogan neighbours’: Crime hotspot breaks into Australia’s top 5 places to invest in property
A former crime hotspot – whose postcode had over 3,600 criminal offences in the past year alone – has been named one of the five best places in Australia to buy property. SEE THE LIST
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
A former crime hotspot – whose postcode had over 3,600 criminal offences in the past year alone – has been named one of the five best places in Australia to buy property.
Dramatic increases in property values since the Covid-19 pandemic have spurred suburbs once shunned and avoided by many owner-occupiers to become some of the hottest targets for not just investors but also homeowners looking for a cheap home.
Sometimes affectionately known as “Inner-LA”, Inala in Brisbane’s fast-growing west, may show up on police statistics as having about 10 offences a day in the past year’s data, but it is now one of the five hottest places in Australia to buy a home, according to the latest Hotspotting report.
MORE: Top tax tips of landlord with 78 homes
Truck driver’s 70 vehicles and 17 houses in five years
Internet erupts as inner-Brisbane carport put up for rent at ‘bargain’
Hotspotting named Inala alongside two affordable local government areas in Perth – Canning and Armadale, plus two in Adelaide – Playford and Salisbury, as the “best strategic property buying and investing potential over the next six months”.
Hotspotting director industry veteran Terry Ryder said with high property prices and interest rates, buyers were looking for affordability, above average rental yields, and sound prospects for capital growth.
He said investors increasingly targeted locations where they could buy cheaply and have higher yields to offset higher interest rates.
“The key objective is to find cheaper areas that offer above-average rental yields but also have the credentials for good capital growth. The good news is that is achievable.”
“There’s a myth among many real estate consumers that you can have good capital growth, or you can have high rental yields, but you can’t have both, so, you have to choose. I believe this is untrue. You can have the best of both worlds by choosing your locations intelligently.”
Residents of Inala have been among the most vocal about crime in the area on Reddit, one advising a potential buyer to “definitely scout out your potential neighbours before choosing a house”.
“We had “methy-bogan” neighbours who: jumped our fence, stole garden solar lights, get triggered just for 1 second of gazing over or be the nicest neighbour, stole our cloths, stole our bikes, play loud music all day/night, had fights throughout the night … the list keeps going.”
Someone suggested “personally I’d look at Darra if you can go up another $100k”, while another said “bottom line is, if you’re not from a high crime suburb that will have a lot of strange looking/drug using people around – you probably shouldn’t buy there without renting first and seeing what you think”.
There’s no doubting the capital gain Inala has seen with PropTrack data showing its median house price rose 10.5 per cent in the past year to $552,500.
One resident said “property values have increased to a point I thought I wouldn’t see – is not as cheap as it once was”.
Gentrification seems to have struck the crime rate in the area too, which was said to now be “much better than in the 90s. It’s a lot safer, cleaner now”.
MORE: See the latest PropTrack Home Price Index
Buyers hunting for affordability may well take the advice to “get a large dog or two & a good fence” to land a cheap home there, with Mr Ryder finding property markets that remained buoyant through interest rate rises in the past year offered properties at attainable prices.
“It’s not a coincidence that the capital cities that have remained busy and competitive recently are the cheapest ones,” he said.
His report analysed rising sales activity, potential for capital growth, supply of houses at affordable prices, strong infrastructure – existing and planned, as well as proximity to major jobs nodes to draw up a top five list nationally across the capitals.
Australia’s Top 5 City Cheapies:
Inala precinct, Suburban Brisbane, Qld
• Affordability and low vacancy rates
• Strong transport links
• Proximity to masterplanned projects (Ripley Valley & Springfield)
• $70m AFL football stadium
• $400m motorway upgrade
• $6b Springfield Health City
• $5.2b Defence Force manufacturing contract
• $350m Westgate project
Within 20km of Brisbane CBD with strong transport links, amenities and services, the median house price is now close to $560,000 based on 119 sales in the year to March 2023 with vacancy rates at just 0.4 per cent, and never climbing higher than 2.8 per cent in the past decade.
“Not only are Inala properties affordable but many of the suburb’s homes are three bedroom cottages on good-sized blocks, with potential for renovation, making them appealing to young families,” Mr Ryder said.
“Coinciding with the rise in birthrates, property prices have been steadily rising in recent years – after a temporary decline in 2018 which encouraged renters to become buyers and generally attracted first-home buyers.”
City of Playford, Northern suburbs of Adelaide, SA
• Fastest-growing LGA in South Australia
• Multiple major job nodes
• Affordable housing and high yields
• SA’s logistical and distribution capital
• Edinburgh Defence complex
• $175m Playford Health Hub
• $250m Playford Alive Town Centre development
“Every suburb in the City of Playford recorded double digit growth in their median house prices in the 12 months to March 2023,” Mr Ryder said. “These figures were the result of strong sales volumes in this period, with eight suburbs each recording more than 100 house sales – including three with well over 200 transactions.”
The highest median house price in Playford is $535,000 in Hillbank, which was after a 20 per cent annual rise. Vacancy rates are tight across the entire area – ranging from 0.3 per cent to 0.6 per cent – with Hotspotting finding the Elizabeth suburbs in particular of solid appeal to investors due to yield.
City of Canning, South-eastern suburbs of Perth, WA
• Strong population growth
• Affordable housing close to CBD
• Attractive lifestyle with green spaces
• New train stations with links to CBD
• $76m, 10-year City Centre Regeneration Program
• Perth’s premier industrial hubs
• State’s largest shopping centre
Hotspotting found Canning’s popularity with buyers was its “cluster of affordable suburbs with excellent amenities, green space and train links”. Median house prices range from $435,000 in Cannington to Lynwood’s $460,000 and $555,000 in Parkwood, with the highest vacancy rate at just 0.5 per cent at across the six postcodes in the Canning.
While long term growth has averaged 4 to 5 per cent in the past decade, Hotspotting believes ”with the growth currently being experienced in this precinct, it’s likely these long-term rates will improve in the near future, especially with vacancy rates also remaining very low”.
City of Salisbury, Northern suburbs of Adelaide, SA
• Defence projects worth $4 billion-plus
• $1.9b Edinburgh Parks Precinct
• $840m Gawler train line electrification
• $3b Riverlea Estate
• $750m Blakes Crossing masterplanned community
• $250m GMH site redevelopment
The unit market in Salibury had a national top five performance in the past year, rising 32.7 per cent, while Elizabeth Park topped house price rises, growing 28 per cent to $340,000 for the year to February.
The entire precinct saw double digit annual price growth with eight suburbs listed as rising markets by Hotspotting – Brahma Lodge, Ingle Farm, Para Hills West, Salisbury, Salisbury East, Salisbury North, Salisbury Heights, and Valley View.
“All postcodes are now at or below 0.5 per cent, making them among the tightest in
the country.”
City of Armadale, South suburbs, Perth, WA
• Affordable housing
• Strong population growth
• Large industrial areas (jobs nodes)
• Strategic Metropolitan
• Activity Centre
• $4b container port
• $1b hydrogen plant
• $635m rail line and station
• $237m upgrade to Armadale Rd
• $4.3b shipbuilding project
The Autumn 2023 Price Predictor Index named Armadale Australia’s strongest property market, with two-thirds of its suburbs seeing high sales activity during the nationwide downturn, and yields above 6 per cent.
Median house prices in several suburbs were between $300,000 and $400,000, and seven of Armadales 10 suburbs were classified as rising or consistency markets including Camillo ($320,000) and Armadale ($300,000) where sales are double 2021 levels.
FOLLOW SOPHIE FOSTER ON TWITTER
More Coverage
First look: New Coast shopping centre for surprise site
A long-empty site in a surprise location will be transformed into a retail showroom complex under fresh plans lodged with the council. FIND OUT WHERE
Revealed: How much rent you need to pay in every Qld suburb
Rents have increased again in 252 Queensland suburbs, reversing the brief downward trend recorded just three months ago. See how your suburb compares!