You’ve done your homework and you know Australia is one of the most stable countries on the planet for property investment. But where should you buy when you get here?
Australia has avoided a recession for the last 25 years, recording strong property price growth across most of the country during this time. According to Business Insider, overseas investors bought 10% of all new housing stock in the first quarter of 2017. If you’re considering investing in property in Australia this year, here are the top locations to watch.
Adelaide is one of the most liveable cities in the world, and the property market is much more affordable than other Australian capitals like Sydney and Melbourne.
Adelaide is one of the most liveable cities in the world, and the property market is much more affordable than other Australian state capitals like Sydney and Melbourne. Suburbs in Adelaide that appear to offer the best opportunity for investment include Redwood Park, Melrose Park, Marino and Modbury Heights, as they tend to have the highest rental yields. The average home price in Adelaide in 2017 was $500,700 (£288,000) – much less than Sydney (over £600,000) and Melbourne (around £500,000).
Melbourne has one of the most consistent property markets in Australia and prices remain at a reasonable level. This desirable city, with its diverse economy and high standard of living, has the highest level of interstate migration – the Australian Bureau of Statistics recorded a 2.3% annual population growth rate for the year to June 2017. The average apartment price is £288,000, with property prices rising by 55% there in the last five years.
3. Regional cities outside Sydney
Wollongong and Newcastle are both booming cities outside Sydney, providing excellent investment opportunities in 2018. The growth potential in commuter cities such as Wollongong and Newcastle (which are both under 1.5 hours to Sydney) is considerable, while property prices are a fraction of what they are in Sydney. Newcastle has seen 7% price growth per annum and has substantial infrastructure projects underway, such as a new light rail system and cruise ship terminal.
The values in pounds here are based on the “interbank rate” at the time of going to press. Download the Property Buyer’s Guide to Currency, packed with insider tips.
Canberra has a wealth of opportunity for property investors with low property prices, strong rental yields and tight vacancy rates. In 2016 there were record building approvals and according to experts, Canberra has the highest rental yields on apartments out of all capital cities in Australia. The big public-sector base, strong higher education sector and growing population all add to Canberra’s desirability as an investment location.
Canberra has a wealth of opportunity for property investors with low property prices, strong rental yields and tight vacancy rates.
Hobart on the island of Tasmania has affordable property options (the average apartment price is £178,000) and strong growth in rental returns according to property website Domain.com. Buying in higher-end suburbs in Hobart will provide the greatest returns and will safeguard investments in the long run. For those looking for an affordable investment option with great returns, Hobart is where it’s at.
6. The Gold Coast and Sunshine Coast
The Gold Coast and Sunshine Coast have seen some considerable new developments in the last few years. With the Commonwealth Games coming up in 2018 there has been significant infrastructure spending on projects like a new hospital and light rail, adding value to the area. Located just outside of Brisbane, both the Gold Coast and the Sunshine Coast offer great lifestyle opportunities thanks to the climate and convenient access to the country’s third largest city.
For a profitable Australian investment, knowing how to drive a bargain when buying is essential. Read our guide, How to Negotiate Abroad.
Major infrastructure projects, a healthy job market, a diverse economy, low supply and high demand, rising rental yields and low vacancy rates are all signals of a healthy property market to invest in. There are plenty of excellent places to purchase property in Australia in 2018, and as one of the most stable economies in the world, there has never been a better time.