This article is from the Australian Property Journal archive
SOUTH Australia, Western Australia and Queensland are home to the most affordable locations that offer the best strategic house-buying potential in the first half of 2023.
The Hotspotting Top 5 Cheapies With Prospects report considered rising sales activity, with potential for capital growth; plenty of houses being available at affordable prices; strong infrastructure, both existing and planned; and proximity to major jobs nodes.
It found South Australia’s City of Playford and City of Salisbury, Western Australia’s City of Armadale and City of Gosnells, and the City of Ipswich in Queensland were ranked the best options in the country for house buyers and investors.
Hotspotting director Terry Ryder said the five locations were sometimes considered to be the “ugly ducklings” of city real estate, but they also had strong prospects for capital growth.
“Ugly duckling is an odd term for something you would recommend to real estate investors, but the term is apt. The ugly duckling of the fairytale was considered unappealing because those around it didn’t understand what it was. Yet, it ultimately evolved into a graceful swan.
“There are suburbs with similar qualities. They are places considered unattractive by those looking through uneducated eyes – but they have the potential to transform into real estate swans.”
Richmond in Melbourne, Balmain in Sydney, and Bulimba in Brisbane are prime examples suburbs that were once considered “down market” or “on the nose” but which have evolved into trendy areas.
“There are suburbs, once considered primarily industrial in nature, which have changed through urban renewal into thriving residential areas with steady price growth.”
Outlying areas of major cities – like the Redcliffe Peninsula in Brisbane –have been “discovered”. Ryder said the significance of these areas in the residential market has grown because affordability has become a headline issue in the housing industry, which is one reason why the cheaper areas of capital cities have recorded good capital growth over time.
“Recent research has shown the cheaper areas undergoing gentrification are among the strongest performers on price growth in our major cities,” Ryder said.
“Not all of the cheaper areas have the potential to evolve into real estate swans, but some of them do.”
Defence underpins value
The City of Playford is the fastest-growing Local Government Area in South Australia. The engine room of its economy is the RAAF Base in Edinburgh, stoking billions of dollars being spent on technology, equipment, and infrastructure, while the Northern Connector opened in 2020, linking northern Adelaide to key freight transport infrastructure. Meanwhile, the under-construction master-planned residential community, Riverlea has spurred a the $3 billion retail and lifestyle hub that has created 10,000 jobs.
Its neighbour, the City of Salisbury, is also underpinned by defence, with $4 billion-plus worth of projects. Construction on the $1.9 billion Edinburgh Parks Precinct is now under way and is dedicating space to multiple industries including aerospace and manufacturing, defence technology, food manufacturing, logistics support and automotive industries.
Out west, the City of Armadale offers affordable housing, is located on Perth’s south-east transport corridor and is the fourth-fastest growing LGA in Western Australia, while just closer to the CBD is the City of Gosnells, which also offers affordable housing and strong population growth. Both have suburbs with median prices in the $300,000s.
In Brisbane’s south west, the City of Ipswich has homes in the $300,000s and $400,000s range, with good transport links and big jobs zones, and the RAAF Base Amberley is set for expansion. There is a proposed $1.7 billion fast rail link and a $5 billion ADF contract, while the suburb of Springfield is developing into a $12 billion community.
