Ten Areas Across Australia Pegged for Capital Growth

The Sunshine coast is one of the regions across Australia making up a top 10 locations list for property investors seeking capital returns.

The National Top 10 Best Buys report, released by HotSpotting’s Terry Ryder, says the locations are potential areas considered to have growth drivers spurring on capital growth.

Ryder says potential hotspots are locations which have more than three of what it calls “core categories”: investing fundamentals such as transport infrastructure, education and medical infrastructure, jobs nodes, urban renewal, government policy, and lifestyle features.

“They are places on the cusp of a phase of good capital growth, locations with identifiable drivers of demand for real estate, which will place pressure on prices and rents,” Ryder says.

“They are all locations we expect to show steady growth over the longer-term.”

As with all investing, it's important to undertake research, including understanding local development and infrastructure plans, and assessing your own personal financial circumstances.

Top 10 Locations
Sunshine CoastQLD
City of MarionSA
Moreton Bay RegionQLD
City of StirlingWA
Darebin LGAVIC
City of Port Adelaide EnfieldSA
Latrobe ValleyVIC

Sunshine Coast: Queensland

The Sunshine Coast, the 9th largest LGA in Australia, has become the strongest property market in Queensland, thanks to the strengthening of its economy and more than $20 billion in infrastructure projects and private investment either completed, under construction or in the planning pipeline.

The region's economy has typically been dominated by three sectors, tourism, retail and construction.

“This is why the area struggled as an economy and as a property market in the past – locations that are essentially based on tourism and speculative development often fail to produce consistent growth,” Ryder said.

“But the Sunshine Coast economy is diversifying and strengthening.”

The construction of a new $225 million runway at the Sunshine Coast airport will see direct flights to and from Asia, along with the development of Maroochydore's new $430 million CBD under way.

Located 100 kilometres north of Brisbane, the Sunshine Coast spans 55 kilometres from Caloundra to Noosa, and includes Kawana, Mooloolaba, Maroochydore, Buderim and Coolum.

Hinterland towns also take in Beerwah, Landsborough and Nambour.

City of Marion: South Australia

The City of Marion continues to be one of the leaders in the Adelaide market, which Ryder regards as Australia's most under-rated capital city.

Located roughly 8 to 20 kilometres south and south-west of Adelaide CBD, the City of Marion is one of the state’s largest metropolitan councils, covering about 55sq metres.

Economic activity in the Tonsley Innovation District, the site of the former Mitsubishi Motors assembly plant, is home to 30 innovative research, technology and science startups, established businesses, institutions and a new teaching hospital and university campus with 6,500 students, following a $1 billion injection.

“The announcement by Flinders University that it plans to build a $1.5 billion Flinders Village comprised of educational facilities, hotel and student accommodation will boost Marion’s prospects even further.”

Bendigo: VIC

Located 130 kilometres north-west of Melbourne, Bendigo is a key regional centre in Victoria, largely thanks to its steady local economy, proximity to Melbourne and transport links to the capital, which include the $5 billion Regional Rail Link.

Economic prospects also include the $630 million re-development of Bendigo’s hospital, plans to develop the city’s first master-planned residential community, and the awarding of a $1.3 billion defence contract.

The report notes the standout features of Bendigo's property market as affordability (houses typically priced below $400,000), strong yields (around the 5 per cent to 5.5 per cent range) and some of the lowest vacancy rates in the nation, with many postcodes below 1 per cent.

Moreton Bay Region: Queensland

The Moreton Bay Region, located between Brisbane and the Sunshine Coast, is one of the highest-growth LGAs in Australia, the report notes it is underpinned by high levels of infrastructure spending and housing affordability.

The Moreton Bay region has been the top market in greater Brisbane, in terms of the number of suburbs with rising sales activity, it also has numerous suburbs with rising demand and price growth above Brisbane averages.

Home to 3,800 hectares of vacant land for residential and commercial projects, the report notes that the region is expected to grow 40 per cent over the next 20 years.

By 2041, Moreton Bay Regional Council (MBRC) forecasts the region will also need an extra 88,000 dwellings.

City of Stirling: Western Australia

The City of Stirling is the largest local government area in the Perth Metropolitan area.

Located 6 to 17 kilometres north of Perth CBD, a $1.6 billion urban regeneration project is under way there.

While Perth's property market has suffered since the resource slowdown, the HotSpotting report notes that the City of Stirling's local property market has recorded rising sales activity.

The region is the second-largest employment area in Western Australia and has been one of the steadiest precincts during Perth’s market downturn.

Darebin LGA: Victoria

Located about 10 to 15 kilometres north of Melbourne CBD, Darebin highlights include strong population growth, education-medical infrastructure, low vacancies, proximity to the Melbourne CBD and is named as a major activity centre by state government.

The report notes that a key strength of the Darebin LGA is its long-term growth rates, with the average annual growth in median house prices over 10 years, between 7 and 8 per cent.

“These are complemented by low vacancies, with most postcodes currently below 2 per cent.”

City of Port Adelaide Enfield: South Australia

The City of Port Adelaide Enfield is located in the north-western suburbs of Adelaide, 8 to 14 kilometres north-west of the city CBD and spans 50 suburbs.

A renowned industrial precinct, the core industry in the area is ship building.

“Over the past five years, inconsistencies in the number and size of ship building contracts led to a large number of job losses, earning this location the nickname “valley of death”.

But from 2017, state government committed to a new $40 million building to house 500 of its public servants, and federal government announced $89 billion to be spent on building 12 submarines.

The flow-on effect has seen the Port Adelaide Enfield LGA emerge in 2018 as an up-and-coming market, offering affordable housing options, good yields and low vacancy rates.

Mackay: Queensland

Sugarcane, tourism and coal mining are the traditional industries of the Mackay Region.

While the region was impacted by the slowdown in the resource sector, along with cyclone Yasi in 2011 and Cyclone Oswald in 2013, the report says Mackay’s property market is recovering.

Signs of modest growth and stabilising vacancy rates began in 2017. The trend has been accompanied by falling vacancy and unemployment rates.

Major construction projects include the $583 million Lindeman Island resort redevelopment, the $30 million Ozcare aged care facility due in 2020, and the $45 million Plantation Palms estate.

Located 950 kilometres north of Brisbane, the region is also near the Whitsunday Islands

Joondalup: Western Australia

Located 25 kilometres north of Perth's CBD, the area has seen an uplift in sales activity in the past 12 months.

The City of Joondalup is one of the largest local government areas in Western Australia by population, and home to a higher than average number of university-educated people in the LGA at 18 per cent.

After several down years, the recovery in Perth's market has been dominated by four municipalities — Joondalup, Stirling, Wanneroo and Melville.

The report notes that sales activity and price data confirms this is still the case, with the Joondalup LGA home to seven suburbs with rising demand and five with consistent sales activity.

“Most postcodes in this LGA now have vacancy rates below 3 per cent, although postcode 6027 (Joondalup, Heathridge, Edgewater, Ocean Reef and Connolly) is a little higher at 3.3 per cent.”

Latrobe Valley: Victoria

Affordable entry points, good rental yields and a country lifestyle are this region's attractions.

Latrobe City is recognised as one of Victoria’s four major regional centres along with Ballarat, Bendigo and Geelong.

Located 138 to 165 kilometres east of Melbourne, the report notes that buyer demand has slowly moved eastward from Melbourne in the last few years, with increased activity in towns across the Latrobe Valley.

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