Buyers’ agents’ pick where to buy property in the major cities in 2017
StartFragmentAmong the areas of interest were established homes in the middle ring, homes 9-13km from the CBD. Picture: Brisbanemarketing.com.au/EndFragment
PROFESSIONAL buyers’ agents have named the areas that they have their eyes on for growth in 2017, and how you can pick where to sink your money into property.
Real Estate Buyers Agents Association of Australia president Rich Harvey urged buyers to seek out suburbs showing signs of being ready for strong future growth to “avoid the ups and downs of the property cycle”.
“It could have planned government infrastructure developments, gentrification potential, or if it is already established, have limited scope for mass redevelopment – this means it avoids any potential oversupply,” he said.
“It is typically a suburb that has lots of renovations going on and some focal points around cafes and shops.
“It’s a suburb where the demographics are driving demand – lots of families or professionals or it can be a “hipster” suburb with a cool vibe, plenty of eateries, bars, entertainment precincts, art galleries and parks.”
In Brisbane, the REBAA has called on owner occupiers to keep an eye on “the gentrifying 9-13km radius”.
“Consider the renovator as opposed to moving further away from the CBD for the newer home. It is these inner and middle ring areas that will have strong capital growth and provide good value adding potential in the long term,” Mr Harvey said of the Brisbane middle ring.
For investors, “the best potential for long-term capital growth and stability will be established property with a 15km radius of the Brisbane CBD, specifically those with value adding potential or in blue chip locations”.
He expected “bargain” units and apartments could come on the market at a slight loss, but urged buyers to be cautious because of continuing softness in that market.
“The Hills or the North West sector where the new North-West rail link will be completed around 2018/19” was a good option for those priced out of the North Shore, Mr Harvey said.
As well he expected first home buyers especially to be drawn to the South West sector where values were expected to rise after the future development of Badgerys Creek Creek airport.
Investors on the hunt in Sydney should look for capital growth in suburb “adjacent to new transport infrastructure that will benefit from reduced travel time and suburbs undergoing gentrification”. Unit and apartment renovation projects were also the go.
The best picks for owner occupiers were homes in the $450,000 to $550,000 range in suburbs where supply was most limited and demand was highest such as Beldon, Heathridge, Padbury, South Lake, Samson, High Wycombe and some parts of Forrestfield, according to REBAA.
For investors, larger land holdings with development or rezoning potential with 25km of the Perth metropolitan area held some interest.
With major greenfield activity in Canberra, it is the “innermost properties” that were “increasingly desirable” which meant “established homes in blue chip suburbs for those with the budget to spend $1.5 to 2.5m (Inner South: Deakin, Griffith, Narrabundah) and Inner North for
those in the sub-$1m price range.”
Mr Harvey said his recommendation for investors in Canberra was to tap into the light rail project along Northbourne Avenue. “I would recommend freestanding homes on 600 to 800sq m blocks in Downer, Dickson, Lyneham and surrounds, with a budget of around $750 to 850,000.”
Mr Harvey said 2017 growth was not expected to match last year, but a suburb to watch this year was Ardeer. “The suburb provides a lot bang for buyers buck with larger block sizes for very affordable prices compared to other suburbs while still being close to the CBD.”
For investors, there were units opportunities in “certain pockets” in Reservoir, while Heidelberg was gentrifying and attracting buyers priced out of Ivanhoe. “With good infrastructure including shops, schools, parks, hospitals and train station, expect Heidelberg to perform well in 2017.”