QUEENSLAND has three of the top five regions tipped for future property price growth on the back of infrastructure spending.
All three regions have had their share of property market ups and downs, but according to Terry Ryder of Hotspotting things are about to turn around.
The Sunshine Coast, the Gold Coast and Townsville all make it into his top five, joined by Penrith City and Wagga Wagga in New South Wales.
Mr Ryder said infrastructure development was the most powerful creator of capital growth in real estate.
“It has been a key factor (among others) in driving the growth in property markets across Sydney, where tens of billions of dollars are being invested in new and improved infrastructure,’’ he said.
“It generates business activity and jobs while improving the amenity of the locations which
directly benefit. This, in turn, creates demand for real estate.’’
He described the Sunshine Coast as a “national market leader’’ boosted by $20 billion worth of projects.
Mr Ryder said it was transforming from a tourist resort town to a major regional city with strong population growth.
He said it was well known that Townsville had been through difficult times but it was poised for a strong recovery, boosted by big infrastructure spending.
The latest CoreLogic Pain and Gain report revealed last week that the area continued to chalk up a high number of loss making sales – 46.1 percent of homes in the June quarter sold for less than the owners originally paid.
But Mr Ryder said a $2 billion military expansion, mining projects and the port redevelopment would be a big boost to the area.
The Gold Coast made the list as big-spending continued in the lead up to the Commonwealth Games in 2018.
It also had strong population growth and low vacancy rates.
“For a long time, Hotspotting has avoided recommending the Gold Coast because of its poor track record on capital growth and its boom-bust history,’’ he said.
“But the Gold Coast cannot be ignored. It has become one of the leading LGAs in
“But the Gold Coast cannot be ignored. It has become one of the leading LGAs in
Australia for sales activity, coupled with low vacancy rates.’’
CoreLogic figures reveal of all the property sales on the Gold Coast in the June quarter, 91.1 percent were for more than owners originally paid. On the Sunshine Coast, it was 92.8 percent.
CoreLogic analyst Cameron Kusher said migration to southeast Queensland had lifted of late and the Gold Coast and Sunshine Coast markets appeared to be benefiting from that.
Originally Published: goldcoastinvestor.com.au