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Gold Coast - Brisbane Corridor, specifically the Gold Coast itself shows strong signs of recovery creating an elevating market - (Timeline 1.13 in the video). Driven to some degree by a weaker Aussie dollar, now more in keeping with the longer term averages of the Aussie dollar rates on the international market naturally attracting tourism, to tourism areas to create a stronger local economy.
Brisbane continues to show on multiple research radar screens as the likely out performing area in Australia
Outer rings of Sydney western and north-west and upper north shore
...is all about making the right choices.
The first decision that must be made is whether it is a lifestyle property investment or a financial property investment.
A lifestyle property investment is purchased more for lifestyle and emotional reasons, rather than to just make money.
An example is someone who would like to either have a tree or sea change when they retire. In this situation it can make sense for someone to buy an investment property in an area that they would like to retire to, have tenants help pay off loans needed to make the purchase, and then look to shifting into the property once retired.
Read more: The success, or failure of investing in property...
The tourism boom which we predicted two years ago has arrived, meaning things will only get better for the Coast.
A decision on a proposed $7 billion mega resort is due in early-2015. An economic impact statement released by the proponent in September 2014 suggests that, if completed, tourism revenue could increase from $1.15 billion per annum to $8.9 billion; 15,000 jobs could be created.
By the end of 2015, I believe the data will show Gold Coast to have been one of the strongest markets in Australia.
But don’t be fooled, leopards don’t change their spots!
Read more: Gold Coast set to be one of the strongest markets in 2016
1. We like city living
Most foreigners have the misguided notion that ours is a country of ‘sweeping plains’, where we all get around with pet kangaroos grazing on the front lawn.
However, while our land mass might be expansive, the way we live is far more compact, with the majority of us crammed into a few big capital cities dotting the edges of our vast continent.
We are one of the most urbanised countries in the world, with almost 60% of us inhabiting one of our six major capital city centres, which boast populations in excess of one million residents each (Hobart being the only exception).
It might surprise you to learn that the only countries with more urbanised populations are Japan, Hong Kong and Singapore.
Research around urban geography and how it relates to house prices suggests that cities with more than one million residents tend to have more expensive property markets.
2. Our cities are more spacious and convenient
When you consider landmass in relation to ‘people mass’, Australian cities are comparably larger than those in other developed countries.
But the problem, according to Eslake, is that the further out into the ‘burbs’ you go, the more inefficient public transport and road infrastructure becomes at ferrying commuters into our CBDs.
Yet it’s within and directly around these CBDs where the majority of employment, economic and lifestyle opportunities are found.
As a result, Eslake says another reason for higher house prices across our cities is that a greater number of homebuyers who are prepared to pay more to get closer to the ‘action’, so they have to spend less time travelling each day.
These eager homebuyers drive up inner city residential real estate values as they compete for prime property positions.
In fact, I recently wrote a blog explaining that not all land is created equal and why it’s important to buy in the inner and middle ring suburbs.
Read more: 7 reasons Australian property prices will remain high
The slowdown in the mining and construction sector is pointing to a drop in sales for the December quarter in Western Australia.
An analysis of the quarter released by REIWA (Real Estate Institute of Western Australia) indicated falling sales, but steady prices.
REIWA president David Airey said sales activity had peaked two years ago and had been trending down since the March quarter of 2013.
“Turnover of the December quarter is about 14% below the 15 year average,’’ he said.
Read more: Western Australia indicate falling sales volumes, but steady prices