As Australia’s two biggest housing markets continue to cool, property investors are casting their eyes across the nation hoping to pinpoint 2019’s growth suburbs.
New analysis from national buyers’ agency Your Property Your Wealth has identified five suburbs in three states with price points under the half-a-million mark worth considering investing in.
The research comes as property investors around the nation rejoice over news the banking regulator will roll back restrictions on “higher-risk” interest-only mortgages.
Located in Victoria, South Australia and Queensland, all five suburbs have median house prices under $500,000 and are on track to record solid growth in the years ahead thanks to key fundamentals such as major infrastructure or population growth.
“Contrary to some people’s narrow viewpoint that Sydney and Melbourne are the only markets in Australia, there are myriad locations where investors can secure affordable property,” Your Property Your Wealth director Daniel Walsh said.
The research did not identify any New South Wales locations worthy of inclusion in the top-five list.
With prices softening in Sydney and Melbourne, Mr Walsh said there were other locations that offered more bang for an investor’s buck.
“You don’t have to spend $1 million to make a wise investment decision – in fact, you could buy two properties for that price in these areas and benefit from the market upswing in the future,” he said.
Top five suburbs for homes under $500,000 in 2019
Grovedale: Geelong, Victoria
Geelong has been one of the nation’s top performing regions in recent years. With a median house price of $467,000, the suburb of Grovedale in Geelong – increasingly considered Victoria’s second capital city – represents great value, according to Mr Walsh.
“I’ve been buying in Geelong for our clients for the best part of three years because of its affordability, but also its robust economy and a population that is growing at a faster rate than Melbourne,” Mr Walsh said.
Wyndham Vale: Wyndham, Victoria
Located 30 kilometres south-west of Melbourne, Wyndham Vale has a median house price of $480,000 and has been experiencing “strong market conditions for a while now, courtesy of its affordability”, Mr Walsh said.
The suburb’s median house price rose an “impressive” 17 per cent over the past year, according to CoreLogic.
Petrie: Moreton Bay, Queensland
Queensland offers a few property investment opportunities “not only because of its relative affordability but also its strong, major infrastructure program,” Mr Walsh said.
Petrie has a median house price of $440,000 and is in the Moreton Bay region of Greater Brisbane. It’s one of Australia’s fastest-growing regions, with a population that’s expected to skyrocket by 40 per cent over the next 20 years.
The suburb will also become home to the University of the Sunshine Coast’s new campus, with construction currently underway.
Raceview: Ipswich, Queensland
Raceview in Ipswich is also located in a growth area, with the region’s population expected to increase from 210,000 to 500,000 by 2041.
The suburb is located three kilometres from Ipswich’s main centre, which means “superior access” to the region’s “diversified economy” which features health care and social assistance, retail trade and manufacturing sectors, Mr Walsh said.
“With a median house price of just $343,000 that is achieving gross yields of 5.5 per cent, it’s not hard to see why Raceview is a solid investment option,” he said.
Port Adelaide: Adelaide, South Australia
The only capital city suburb to make the list, Port Adelaide’s median house price of $350,000 and location just eight kilometres from the city centre makes it worthy of consideration, Mr Walsh said.
A pipeline of lucrative government projects, and the ongoing rejuvenation of the port, increase the appeal.
“Recent developments include the $40 million state government building on Nile Street, redevelopment of the waterfront precinct to provide homes, as well as plans for a maritime-themed attraction with historic ships,” Mr Walsh said.
“Port Adelaide is on the cusp of change and smart investors are getting in now to make the most of the uplift.”