Despite near-record high property prices across the country, there are still affordable locations for investors, according to a new report.
According to Hotspotting, there are affordable areas in Perth, Melbourne, Brisbane and Adelaide, that are likely to offer the best strategic property buying and investing potential over the next six months.
Hotspotting Director Terry Ryder said the City of Melbourne was shaping up as one of the best value locations in the country.
“The City of Melbourne market remains a favourable option for long-term investors because of excellent yields and low vacancies. In addition, home buyers are attracted by the strong local economy, excellent liveability, and good transport links,” Mr Ryder said.
“Despite facing challenges during the pandemic, Melbourne has shown resilience and stability in its property market.
“However, the rising interest rates and shifting lifestyle demands have caused investors and homeowners to look at options such as units and townhouses instead of standalone houses.”
Mr Ryder said its strong economy, with major businesses, universities, hospitals, and government services, has been further bolstered by ongoing infrastructure projects such as the North East Rail Link and the proposed Suburban Rail Loop.
“These developments are expected to bring in significant investments and create thousands of jobs, ensuring continued growth and stability in Melbourne’s property market,” he said.
Mr Ryder said the northern Adelaide region of Salisbury was in demand due to extremely low vacancy rates and it looks to offer great value for investors.
“Rents are rising, and rental yields are strong,” he said.
“Along with affordable prices, this attractive combination is providing strong opportunities for entry-level investors.”
Hotspotting General Manager Tim Graham said the Armadale region of Perth features some of the most budget-priced houses of any capital city, and also offers strong infrastructure, services, and amenities.
“Armadale is also the fourth fastest-growing LGA in Western Australia and is strategically located in Perth’s south-east transport corridor, with access to large employment nodes,” Mr Graham said.
“One notable aspect of Perth’s property market is the high level of sales activity in its cheaper suburbs, which is attributed to government incentives for first-home buyers that have contributed to the strong performance in this market.”
“This local government area also boasts of budget-friendly housing options and excellent infrastructure, services, and amenities.”
In the Southern Moreton Islands region of Greater Brisbane, Macleay and Russell islands offer median house prices in the mid-high $300,000 range.
This affordability, together with significant lifestyle appeal, has seen demand and sales activity rise since 2020.
“Regular passenger ferries make it easy to commute from the islands to major job nodes such as the Brisbane CBD, Brisbane Airport, and the Port of Brisbane in under 60 minutes,” Mr Graham said.
“There are two main islands, Russell and Macleay, as well as Lamb, Coochiemudlo, and Karragarra islands.
“Two precincts in the Southern Redland Area are marked as Priority Development Areas, with plans for a new marina, upgraded infrastructure, and job opportunities.”
Mr Graham said the median house prices on Russell and Macleay islands are in the mid-high $300,000 range, making them the most affordable locations in Greater Brisbane.
Rounding out the top five city cheapies with prospects, the City of Canning in Perth has gone from strength to strength over recent years with strong home buyer and investor demand, Mr Ryder said.
“With the City of Canning experiencing strong growth – particularly in the number of families moving to the area – demand for residential dwellings, infrastructure, and amenities is high,” he said.
“The City Centre Regeneration Program aims to ultimately transform Canning into Perth’s ‘southern CBD’ and will feature 10,000 homes for 25,000 new residents.”
In addition, the City of Canning is supported by some of the lowest vacancy rates in Perth, Mr Ryder said.