Experts have found five markets across Australia with home prices still under $1 million, where owners and investors could still see a big jump in value.
Propell Property research spotted the rising locations in Queensland, NSW and Victoria, with the Sunshine State taking three of the top five spots.
Five markets across Australia, such as Queensland’s Moreton Bay area, are expected to see a big jump in potential value as prices continue to rise.
Propell Property managing director Michael Pell said markets with renovation potential or small-scale development capacity were spots to watch out for, especially if investors were seeking homes with substantial future returns.
“Affordability is tightening, but opportunity hasn’t disappeared,” he said.
“The investors who will outperform in this cycle are the ones who buy assets with multiple levers for value creation and not just passive capital growth.”
Propell Property managing director Michael Pell said getting into these hotspots now could give homeowners the best chance at a significant return on their money in the future.
Strong competition between owner-occupiers and growing infrastructure are two key factors in Propell Property’s research, such as in the Ipswich LGA. Picture: Rob Williams
Across Queensland, the local government areas of Moreton Bay, Townsville and Ipswich were singled out as prime areas for further growth, even if they had seen spiking prices already.
Mr Pell said Moreton Bay’s growing median house price showed demand was outpacing supply, but well-located homes with the potential for renovation or a secondary dwelling were still selling for less than $1m.
Townsville’s continued growth and tight vacancy rates made Mr Pell call it “one of the most undervalued markets in the country.” Picture: Mark Fitz.
Over in Ipswich, the population growth and heavy competition between owner-occupiers meant getting in the market would allow an owner to take advantage of quickly growing infrastructure, such as new communities and transport options.
Meanwhile, Mr Pell said Townsville was “one of the most undervalued markets in the country”, thanks to its spending on defence, health, education and infrastructure.
“Yields are strong, vacancy rates are tight, and investors can still secure properties with excellent upside potential,” he said.
The Mid North Coast of NSW and Greater Geelong in Victoria were seen as the two lifestyle markets outside of Queensland with great capital growth prospects. Picture: supplied.
Moving down to NSW, the Mid North Coast was singled out for being a lifestyle market with a strong owner-occupier base, giving the area stability and strong prospects for capital growth.
Finally, the Greater Geelong area was named the most resilient market in Victoria, lifted up by a diverse economy in the area.
“Geelong offers the lifestyle buyers want with the economic depth investors need,” he said, “and there is still room to buy quality homes with value-add potential.”
Buying in these areas is one thing, but gaining value from the markets as they grow could require improvements to the properties: such as renovations or new buildings entirely.
To succeed in any of these markets, Mr Pell said active changes such as cosmetic upgrades all the way to new residences was important to see the most profitability from the market.
“Buying well is only half the equation,” he said. “The real advantage comes from choosing markets where you can positively influence the value of the asset from day one.”
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