It’s still possible to find affordable investment hot spots close to the CBD

THESE are the hot spots where the market has already performed well and all the stars are aligning for continued growth this year.

St Kilda is considered a hot spot for potential future house value growth. Expressions of interest for 8 Cintra Avenue, St Kilda close March 3. Picture: realestate.com.au

THESE are the hot spots where the market has already performed well and all the stars are aligning for continued growth this year.

Analysis by PRDnationwide has found it is still possible to find hot spots for investing in the house and unit market within a reasonable distance of the CBD.

HOME SALE CLEARED FOR TAKEOFF

UNIT NUMBERS SURGING AHEAD

PRDnationwide national research manager, Dr Diaswati Mardiasmo, selected the suburbs after analysing previous price growth, aggregate estimated value of developments this year and beyond and average days on market and vendor discounting.

Dr Mardiasmo said she was careful to not just pick the expensive suburbs.

“Because then what is the point, people say I will not be able to afford that.’’

“Sometimes they are those suburbs that people don’t think about or don’t normally hear about.

“They are not the popular suburbs but some of them are quite close to the CBD.’’

She Sydney was perhaps the one market where it was harder to find something affordable close to the CBD.

Fitzgibbon is considered a potential hot spot for house investment, according to PRDnationwide research. this four-bedroomhome at 99 Cambridge Crescent is listed for $439,000. Picture: realestate.com.au

BRISBANE HOUSE HOTSPOTS

Fitzgibbon: 18km from CBD. Median house price $428,000.

— In Brisbane’s north, it has a low entry price compared to nearby areas. Good access to road and rail.

Kelvin Grove: 3km from the CBD. Median house price $640,000.

— Ideal area for investors and owner occupiers. Close to top-rated schools and university.

Runcorn: 16km from CBD. Median house price $481,000.

— Easy access to CBD, and the Gold Coast. Close to commercial and industrial hubs and shopping centres.

Indooroopilly is a popular suburb for units. 8/160 Central Ave is seeking offers over $380,000. Picture: realestate.com.au

BRISBANE UNIT HOTSPOTS

Indooroopilly: 8km from CBD. Median unit price $431,000.

— Variety of dwelling types to suit all buyers. Close to university and transport

East Brisbane: 4km to CBD. Median unit price $445,000.

— Affordable alternative to inner city markets. Wide range of dwelling types suitable for investors and owner occupiers.

Wooloowin: 10km from CBD. Median unit price $372,000.

Easy access to CBD. Mercer Park and Kedron Brook Bikeway.

A home at 7 Sawyer St, Jingili is listed for $638,000. Jingili is listed as a hotspot in Darwin. Picture: realestate.com.au

DARWIN

Dr Mardiasmo said the majority of suburbs in Darwin had shown no significant growth in 2014, although transaction levels were up.

“This suggests that although the property market in Darwin is attractive it remains affordable to potential buyers.’’

DARWIN HOUSE HOTSPOTS

Jingili: 12km from CBD. Median house price $590,000.

— Mostly detached family homes, rental yields of 5.6 per cent. Major developments include airport gateway mixed-use redevelopment.

Millner: 10km from CBD. Median house price $579,000.

— Has experienced large unit and house price growth because of extensive development in the area. Another $15m worth of development expected to start this year.

Muirhead: 16km from CBD. Median house price $310,000.

— 32 per cent growth in house transactions last year which is expected to continue with substantial new development expected this year.

A unit at 8/22 Sergison Circuit, Rapid Creek is listed for $499,000. The suburb is highlighted as a good one for investment. Picture: realestate.com.au

DARWIN UNIT HOTSPOTS

Berrimah: 14km from CBD. Median unit price $530,000.

— Investors will do well in the unit market with a rental yield of 4.3 per cent. Major upcoming residential development project — Boulter Road Townhouses.

Larrakeyah: 2km from CBD. Median unit price $557,000.

— An increase of 15 per cent in transaction levels. Affordability is high, despite increased demand. The suburb provides a 4.5 per cent rental yield for investors.

Rapid Creek: 12km from CBD. Median unit price $456,000.

— Will benefit from $7 million worth of new residential projects this year.

St Kilda is considered a hot spot for potential future house value growth. Expressions of interest for 8 Cintra Avenue, St Kilda close March 3. Picture: realestate.com.au

MELBOURNE HOUSE HOTSPOTS

St Kilda: 6km from CBD. Median house price $826,000.

— Current rental yield of 4.6 per cent for houses and 4.2 per cent for units. About $336 million worth of upcoming residential development in 2015.

Doncaster: 15km from CBD. Median house price $945,000.

— Popular area for recreation along its historic gulf station, reservoir and museum park. Suburb growth sits at 12.5 per cent with average weekly rent of $287.

Epping: 22km from CBD. Median house price $350,000.

— A suburb for first home buyers due to affordability and ease of travel to the CBD. Upcoming industrial development worth $80 million.

A unit at 3/494A Glenferrie Rd, Hawthorn is set for auction. The suburb will undergo substantial development this year. Picture: realestate.com.au

MELBOURNE UNIT HOTSPOTS

Albert Park: 4km from CBD. Median unit price $750,000.

— Concentration of higher density dwellings is likely to attract more young adults and smaller households, often renting.

Hawthorn: 6km from CBD. Median unit price $517,500.

— Has a current rental yield of 2.7 per cent. Hawthorn’s 2015 development outlay of $886 million will boost its residential performance in upcoming years.

Kew: 7km from CBD. Median unit price $643,750.

— Competition in the residential market has prompted high resale values and a fall in the average days on the market by 28 per cent.

A home at 27 Strathmore Terrace, Brighton has a price range of $610,000 to $650,000. Picture: realestate.com.au

ADELAIDE HOUSE HOTSPOTS

Brighton: 15km from CBD. Median house price $574,000.

— The beachside suburb has a 10 per cent lower price of entry compared to nearby areas.

Craigburn Farm: 14km from CBD. Median house price $685,000.

— With a 3.4 per cent growth in median price and 3.8 per cent rental yield, it is a highly desirable area.

Kensington Park: 5km from CBD. Median house price $728,000.

— Close to commercial and industrial hubs as well as shopping centres. Investors will do well in Kensington Park with a rental yield of 3.1 per cent.

Seaton in South Australia is a hotspot for units. A one-bedroom unit at 6/4 Alfred Avenue is listed for $199,000. Picture: realestate.com.au

ADELAIDE UNIT HOTSPOTS

Salisbury Downs: 20km from CBD. Median unit price $168,000.

— Affordable alternative to inner city markets, yet also recording high growth of 12.4 per cent between 2012 and 2014.

Seaton: 12km from CBD. Median unit price $293,000.

— Investors will do well in Seaton, with an average rental yield of 5.1 per cent.

Windsor Gardens: 11km from CBD. Median unit price $220,000.

— Benefits from easy access to the CBD via roads and buses. Close to educational institutions. Scheduled for $9.2 million worth of development in the first half of this year.

Caversham in West Australia is popular for houses. A home at 45 Lombardy Crescent is seeking offers between $479,000 and $499,000. Picture: realestate.com.au

PERTH HOUSE HOTSPOTS

Balcatta: 12km from CBD. Median house price $540,000.

— Affordable, close to the CBD. A major upcoming residential development in 2015 is the Albert Street Grouped Dwellings.

Caversham: 16km from CBD. Median house price $498,000.

— Growth of 6 per cent in past 12 months. A developing suburb with new developments of large, affordable homes on smaller lots.

Kardinya: 17km from CBD. Median house price $682,000.

— Growth of 18.6 per cent over the past three years. Investors will do well with a rental yield of 3.9 per cent.

East Fremantle is a unit hotspot. 18/46 East St, is listed for $465,000. Picture: realestate.com.au

PERTH UNIT HOTSPOTS

Rivervale: 10km from CBD. Median unit price $380,000.

— An affordable alternative to the inner city markets. Six residential development projects valued at $165 million.

East Fremantle: 17km from CBD. Median unit price $489,000.

— Interest in suburb has been building during the past three years. Suitable to investors, offering a 4.5 per cent rental yield on unit investments.

Cannington: 11km from CBD. Median unit price $375,000.

— It will benefit from $45 million worth of new projects starting in 2015. The new development in the area offers a more affordable option to first home buyers.

A home at 15 Tripod Street, Concord will test the auction market. Picture: realestate.com.au

SYDNEY HOUSE HOTSPOTS

Cambridge Park: 53km from CBD. Median house price $435,000.

— A perfect balance between affordability and location. Most properties in the suburb are on large blocks and offer the opportunity to renovate or redevelop.

Concord: 15km from CBD. Median house price $1,340,000.

— Becoming as desirable as its neighbouring suburbs such as Strathfield and Cabarita while still being around 20 per cent more affordable.

Merrylands: 25km from CBD. Median house price $675,000.

— Diverse range of properties to suit all types of buyers. $230 million in new projects in 2015.

Liverpool is a hotspot for units in Sydney. 25/31 Forbes St, has a price guide of over $320,000. Picture: realestate.com.au

SYDNEY UNIT HOTSPOTS

Penshurst: 17km from CBD. Median unit price $495,000.

— A 5.8 per cent lower median unit price when compared to surrounding suburbs. Area is gentrifying with $230 million in projects starting in 2015.

Homebush: 14km from CBD. Median unit price $545,000.

— By 2020 it should receive $800 million in commercial and mixed-use projects which will significantly improve local amenity and desirability. An excellent starting suburb for young professionals.

Liverpool: 40km from CBD. Median unit price $332,000.

— A fast growing satellite city with $7.4 billion in planned infrastructure. Perfect for first homebuyers looking to enter the market.