Investment expert Jean-Paul Pelosi of Commonwealth Bank is suggesting that property investors look outside of Australia’s state capital cities for alternative hotspots, gathering opinion from local property professionals on some promising targets.
Director of Hotspotting.com.au, Terry Ryder, advises potential buyers to look at Melbourne’s outer areas, such as the Sunshine precinct and Monash City. “I expect good 2015 growth in the Whittlesea, Casey, Frankston and Mornington Peninsula LGAs [Local Government Associations]. In the regions, Ballarat and Bendigo will gather strength as major infrastructure, like the $5bn Regional Rail Link, nears completion,” says Ryder.
David Jackson from Sims Property, highlights Launceston in Tasmania. “In the majority of suburbs in and around Launceston you buy properties that are fairly substantial for around AU$250,000 to AU$300,000. That makes it very affordable,” he says.
Property valuer Herron Todd White (HTW) says the 2014 performance of Illawarra in New South Wales has set the tone for 2015. “Local real estate agents are bullish that results in 2014 will be replicated in 2015, with many claiming that the past 12 to 18 months’ strength is simply the catch up that was needed,” says HTW.
Michael Matusik, director of Matusik Property Insights, suggests that Cairns in Queensland has entered the recovery phase of the property cycle, with property prices just starting to go up. HTW also recommend investors to consider the Cairns North area, with low average prices and good annual yields.