TLRS3_002_43001 Affordable Boom Suburbs Factsheet

 MONEY WITH JASON CUNNINGHAM AUSTRALIA’S AFFORDABLE BOOM SUBURBS In ten years time which suburbs will we all wish we’d bought property in? Jason travels around Australia's capital cities to find the suburbs set to boom. With a budget of under $450,000 and a defined radius of 20 kilometres from the city centre, Jason shows us the best buys in Adelaide, Brisbane, Perth, Melbourne and Sydney. AFFORDABLE BOOM SUBURBS Searching for the illusive ‘boom suburb’ is something that not just industry experts but all of us tend to obsess about. The potential to make a healthy profit from property excites us all! And it can get confusing when we hear different experts all preaching different advice and suburbs. One thing most experts and property leaders agree on is the list of factors that will cause price rises in one suburb over another. Namely that the suburb: is either close to the city’s CBD, or a major working centre has good road access or transport services into the CBD or working centre has neighbouring suburbs which have shown a recent increase real estate prices or is undergoing gentrification • has an active council which plans to upgrade the suburbs facilities/amenities/roads/transport or has been targeted by government or property developers for development projects Our team at the Living Room set out in search of an affordable boom suburb in Sydney, Melbourne, Adelaide, Perth and Brisbane. Our research was based on studying various property data, media articles, and conversations with a range of property leaders. The suburbs we chose all had to fit within the following criteria: •
•
•
• the suburbs median price fell under $450,000 • the suburb lay within 20 kilometres of the CBD** • there are good reasons and/or evidence the suburb will increase in value Overall our research presented some interesting results which are outlined below. **Cheaper housing is often found on the outer city fringes, however as most experts say, these are the properties that will first feel the affects of a market downturn. Keeping within a 20 kilometre radius or closer in with the smaller cities should minimise buyers being subjected to this. SYDNEY MARKET It is commonly known that Sydney has expensive real estate (with a median house price of $775,000*) so searching for a property under $450,000 and within 20 kilometres of the city was not an easy task. A property can be found, however in the form of an apartment. Selected Suburb: MEADOWBANK Within our price range, a two bedroom apartment can be found in an older block or possibly a one bedroom in a new development. Meadowbank offers a good range of benefits for the long term: the ferry stop at its doorstep enables residents to travel into the city within 40 minutes, or by train in 30 minutes. Plenty of bus services exist along Victoria Road where a range of cafes and shops can also be found including a large shopping centre. On top of these benefits, plenty of green space exists along the river, helping to offset the lack of a backyard for residents. Single standing houses in Sydney within this price range can be found on the outer fringe areas such as Cambridge Park where a 3 bedroom home is $360 – 380,000* but with a 56km distance from the CBD or 34kms from Parramatta. Sydney Market Expert: TIM LAWLESS, National Research Director of RP Data (one of Australia’s leading providers of property market information services and analytics.) Tim has become a regular voice in the media reporting on current market trends and is a successful keynote speaker for industry-­‐related conferences and seminars. Filmed House: 2 Bedroom unit + 1 bathroom – rental advertised at $370/ week but estimated value around $400k Agent: Ray White Ryde http://raywhiteryde.com.au/ MELBOURNE MARKET Melbourne like Sydney is an expensive market for real estate. While it has seen a huge spike in prices since 2009 bringing its median price up to $625,000*, the market has slowed down in some areas and so buyer activity is not as vigorous. Units have reached some stagnation from over supply but good prospects can be found among houses in the right suburbs. Selected Suburb: SUNSHINE Sunshine is commonly known as an ugly duckling suburb and, to many locals’ surprise, has been tipped by industry leaders as one to transform, much like its neighbouring suburb of Footscray. Government has designated Sunshine for redevelopment and upgrade in the near future. It is close to the city (14 kilometres), has nearby access to the M80 ring road, a train station with good links plus a busy shopping precinct with two shopping strips and large centres. There are not too many suburbs left this close to the city offering the value found here. A solid standing 3 bedroom home may list for around $350,000 – $430,000*. For buyers seeking a waterside location and happy to extend further out, then Altona Meadows is likely to perform well thanks to its neighbouring suburb of Altona. Additionally Hoppers Crossing, 23 kilometres out, offers large 600 square metre blocks from $330,000 – $400,000. Melbourne Market Expert: PAUL OSBORNE Paul has 12 years direct property experience and heads up his own company, Secret Agent Buyer Services. He is chapter chairman for the REIV (Real Estate Institute of Victoria). Filmed House: 3 bed 1 bath 1 car, sold for $335k in November 2013 Agent: Sweeney Estate Agents http://www.sweeneyea.com.au/ BRISBANE MARKET The last five years in Brisbane property has been slow and shown just a 1% rise in values. This has however meant greater affordability compared to other cities (median house price $470,000*). The second half of 2013 saw a lot of vigorous investor buyer activity possibly stemming from predictions of property price rises in 2014. Selected Suburb: GEEBUNG Geebung presents large block 3 bedroom houses for around $430,000 being gradually vacated by older generations. The suburb is well serviced by public transport and is a 20 minute drive to the CBD. Geebung has been recently gaining investor interest due to its neighbouring suburbs’ (Chermside, Wavell Heights and Virginia) price increases. Chermside has a huge shopping centre that was recently expanded attracting more business and interest to neighbouring suburbs like Geebung. Chermside is also tipped to become Brisbane’s North CBD which will benefit Geebung greatly. Brisbane Market Expert: Zoran Solano, Buyer’s Agent Hot Property Specialists is one of Brisbane’s leading buyers agents representing buyers to purchase investment properties, development sites and family homes. Zoran is used in the media regularly for commentary on property news. Filmed Property: 3 bed, 1 bath 1 car ; sold in November 2013 for $389,000. Agency: Coronis Real Estate http://www.coronis.com.au ADELAIDE MARKET Adelaide is Australia’s most affordable mainland capital city with a median house price of $405,000*. Overall the market has been quiet in Adelaide with properties presenting an increased rise of just over a quarter in value since the start of 2009. There are some major urban planning projects which on completion should see a bigger rise in the Adelaide market. Selected Suburb: WEST CROYDON West Croydon offers good growth potential due to its location and character. It sits just 7.5 kilometres from the CBD and neighbours the affluent suburb of Croydon. Therefore according to property trends, West Croydon should attract a flow-­‐on affect from buyers being pushed out of the Croydon market. Just 3 kilometres away a massive project is underway, the Bowden Project, which will introduce a population boost with 3500 homes, a tram extension and retail shops. West Croydon also boasts character seen in its range of Californian bungalow style homes and a buzzing café culture. Another suburb offering potential growth is Semaphore Park which is close to the beach and has 3 bedroom dwellings for around $420,000 or in the opposite direction the Onkaparinga area where extensive capital works are under way. Adelaide Market Expert: Phil Harris, is a leading real estate agent in Adelaide. His awards include Golden Gavel Auctioneering Championships and the REI SA Salesperson of the Year. Filmed Property: 2 bed, 1 bath, 1 car $420k – $440k , Agency: Harris Real
Estate http://www.harrisrealestate.com.au
PERTH MARKET From 2009 Perth property growth was weak in comparison with Sydney and Melbourne. What it did mean however was greater affordability for buyers pushed out of those markets. Last year Perth’s market picked up however with strong competition among buyers and low supply and is predicted to continue to rise with new large urban developments taking place. Currently the median house price in Perth is $537,250*. Selected Suburb: MIDLAND Midland is situated east of Perth just 17kms out in the Swan Region and was once famous for being a railway workers hub. Today it is emerging as a modern vibrant city of its own and boasting a good number of reasons to invest or buy here. Midland has its own train station, historic precinct and a good shopping area so much that Midland is more like a town centre than a suburb -­‐ making it more valuable than a single standing suburb. A huge urban renewal program is under way with $1.2 billion being injected into the economy with the construction of a large hospital bringing 7500 jobs with it as well as other development plans. 3 bedroom homes can be seen listed for around $380,000. Perth Market Expert: Gavin Hegney, Property Valuer heads up a property valuations and research advice firm in Perth. He is a regular property commentator on ABC radio on the ‘Morning Show’. Filmed House: 4 bed 1 bath 7 car space was listed in November 2013 for $435, 000 Agency: LJ Hooker Midland http://midland.ljhooker.com.au/ *figures to date as of February 2014 NB: A range of data sources on real estate information exist therefore figures will vary according to their source; Always consult a professional before making any financial decisions; WEBLINKS When considering purchasing a property, you can conduct your own research online. Below are some suggested websites, which provide suburb profile reports revealing data such as the suburbs’ past growth figures, days on market, and average annual growth. For example “My RP Data allows you to download reports such as a ‘suburb sales report’, which provides all sales in a suburb in the last 12 months. The websites also include articles by property experts and newsletters, which you can subscribe to for up to date information. www.yourinvestmentpropertymag.com.au www.realestate.com.au www.domain.com.au www.apimagazine.com.au www.reia.com.au www.rpdata.com www.myrpdata.com www.apm.com.au