I have come to the view, from handling a significant part of the enquiry we get as Buyer’s Agents, that people do not know “where” to buy next. Putting Sydney & Melbourne aside for the moment, what are the Capital City options?
Brisbane – jobs? If you were an international business wanting to set up an office in Australia, then it usually comes down to a choice between Sydney & Melbourne, not Brisbane.
Hobart – only does well because it picks up the ripple effect from Melbourne, otherwise there are not lot of drivers for Capital Growth there.
Adelaide – same comments as Brisbane and has always been a bit of a sleeper (although steady).
Perth – I think people are still gun-shy after the last few years of negative growth (mining industry related).
Mining towns – have never been on my radar for the reasons speculators (I hesitate to call them investors) have lost money and continue to do so.
So where to next? In my opinion it is the large regionals 1-2 hours commute from Sydney & Melbourne. They have enough proximity to both the capital cities to be perceived as “safe” (not 1 industry towns) and are still very affordable by capital city standards and close enough to commute to if necessary.
This translates to what we are seeing with Newcastle and the Central Coast & surrounds doing very well at the present time. But as always you cannot just buy any property and hope to do well. There is due diligence that needs to be done. If you would like to know more, please feel free to contact us for a confidential discussion.