With median values of dwellings ranging from $1,039,514 in Sydney to $816,644 in Canberra, the national average is $666,514. In June 2021, a massive spike in property development Australia was seen, accounting for about $30,333.8 million in revenues.
These statistics make you wonder if you have missed the chance or can still make a buck from the property market in Australia? The truth is that while some regions have seen tremendous growth already, others are still catching up. It means that you can still find steal deals to invest in the real estate sector. These are six ways to find the right areas to invest in.
1. Search for Ripple Effects
When a specific location sees monumental growth in property prices, the suburbs close to that area will experience a ripple effect. This requires a certain time in the growth cycle. You can do that by comparing the median prices in the adjoining areas. If you notice a difference of over 5%, the neighborhood will likely catch up soon. Thus, property development in Australia will experience increased prices close to fast-rising communities in the suburbs.
2. Ill-Reputed Areas Experiencing Gentrification
These areas have had a bad reputation in the past but are experiencing a steady rise in prices over the past couple of years. You can study the demographic makeup of the location to know better. If there are a large number of young residents with decent incomes, and the spot sees a sudden spurt of retail outlets, you can expect the property prices to rise for the next few years.
3. Supply and Demand Analysis
The laws of Economics work great in determining where property development can give you a quick and high return. Supply and demand analysis helps you understand that when supply is low, and demand is high, people will pay more.
4. Look for an Increase in Population
Another aspect to consider is the increasing population in the area. It could be that development is attracting industry and, therefore, the labor force. As more people move into the site, the demand for housing will rise automatically. Another reason for the population rise can be more people starting families due to good schools in the suburbs.
5. Look at Amenities and Livability
When people start families, they will want to move to places close to parks, good schools, and amenities such as grocery stores, restaurants, and access to public transport.
Finding a location with all of these facilities can tip the scale in your favor and provide a high return in terms of rental income or outright sale. You may be on a budget and, therefore, consider livable locations and can make excellent property development investment opportunities.
6. Established Neighbourhoods
These places are where residents have lived for years and have most likely paid off their home loans. Such locations are most likely to provide a higher return as they have established themselves as highly livable.
The initial investment may be increased, but the return will not disappoint you as home buyers or renters will pay premium pricing for the right place. Even half a percent matters, considering that prices go into hundreds of thousands. Sydney’s home prices rose by 1.9% in August 2021, while Melbourne’s prices rose by 1.4%.
If COVID-19 has taught us something, you should not have to travel long distances to buy groceries or play in the park. Established neighborhoods will have access to all the possible amenities nearby. Therefore, investing in this segment can prove to be an outperformer.
When looking at investing in real estate, property development in Australia is in everyone’s mind. Finding a location in its upcycle can yield great returns quickly. Above are the six aspects to consider when looking at the right area to invest in.