While the powerhouse capitals Melbourne and Sydney are continuing to suffer a property downturn, it’s not all bad news for the rest of the country – if you know where to look.
In fact, some areas that had been weaker during the property boom are now beating the rest in a major rebound, according to property adviser Anna Porter, principal of Suburbanite.
“There are markets throughout the country that are seeing sales going through quicker [and] there’s more buyer demand, and that usually leads to some level of price increase,” Porter told Your Money Live.
“So that’s a big bounce-back for markets that might have been really subdued over the last couple of years.”
Unfortunately for investors in Sydney and Melbourne, that growth story is mostly a tale of just two cities: Brisbane and Perth.
“They’ve entered that timing in the cycle where you’ve got a lot of affordability coupled with a number of economic drivers. It’s driving that growth back up again,” she explained.
Good news for Perth
It’s been a particularly difficult five years for Western Australia’s capital city, with the property market delivering consecutive negative growth year-on-year.
“Everyone in the country has heard that Perth has been through some tough times. It’s had not only the housing boom but the mining boom coming off,” she said.
The good news is that it appears to be going through a surprise rebound, with a number of areas delivering solid growth, according to Porter.
While the property downturn is slowing, she said other economic drivers are also starting to come into play, such as solid employment figures and population growth.
And according to Porter, there are five key Perth suburbs that investors should watch, having delivered high growth in the last 12 months:
- South Perth: 13.7 per cent
- Glen Forrest: 14.4 per cent
- Subiaco: 10 per cent
- Murdoch: Nine per cent
- Osborne Park: 7.4 per cent
Slow times over for Brisbane
Despite a positive 2016 and 2017 for the Queensland city, last year saw Brisbane’s property market feeling the pinch.
With higher lending restrictions, Porter said investors had been starting to look toward less expensive locations in regional Queensland, pushing buyers out of the more expensive Brisbane.
“We are now seeing some of the better Brisbane suburbs really power through the past 12 months, even in a declining or flat environment, and there are certainly a few stand out suburbs that are emerging,” said Porter.
While not all areas of Brisbane are in the growth zones, key economic drivers are painting a positive overall picture for the city in the long run.
“We’re seeing some great data coming out, not just in the growth but vacancy rates are going down, days on market are going down… We’re seeing the buyer demand increasing,” she noted.
According to Porter, the Brisbane suburbs delivering high growth in the last 12 months include:
- Greenslopes: 7.8 per cent
- Nundah: Five per cent
- Ashgrove: 9.2 per cent
- Hendra: 10.8 per cent
Source: Kylie Purcell