Once again, the property market in regional areas continues to outshine city growth in all states. In Queensland alone, the Sunshine Coast and Gold Coast have outperformed Brisbane for the last 5 years.
So many investors think they understand real estate and their idea of research is to scan newspaper headlines - they believe that prime property, which they define as the inner suburbs of the bigger cities, shows the best growth which is simply not backed up by the facts.
It’s frustrating to me when I hear so many people who won’t even consider the smaller capital cities, let alone the regions, even though the figures support it because it’s their firm belief that to have the best chance of success they need to invest in property in the big cities. Many Australian property investors simply don’t do their homework and they end up making very bad financial decisions.
For the past 5 years in Queensland, the Gold Coast and the Sunshine Coast property markets have done much better than Brisbane. Many would say that Queensland’s property market is more diverse than any other in Australia because there are many different markets in the one State. Conditions vary across Brisbane, Queensland’s regional markets, the Gold Coast, and the Sunshine Coast, but it’s not Brisbane that comes out on top.
Regional Centres Continue to Outperform Capital Cities
Buyers agents and other real estate professionals are confronting this issue every day. They know full well that, for many years now, key regional centres have outperformed their capital cities. And it’s very clear to them that current trends driving future property growth are aimed directly at regional centres. Unfortunately, their clients are afraid of investing in regional centres – they prefer to invest in property in the big cities. For them, anything more than 15 km from the city centre is just too risky for them. They have become part of a group of investors whose only measuring stick is the distance from the CBD. What they don’t see is that more-and-more of Australia’s CBD’s are becoming irrelevant.
Again, just have a look at Queensland. While Brisbane is doing well, some agents are saying they have never seen so much activity in the Sunshine Coast and Gold Coast property markets. These two property markets have performed much better than Brisbane over the past few years, with increasing interest coming from both local and interstate investors.
The trend we’re seeing in Australia today is for people to leave inner-city areas and head to regional or rural areas. And this is nothing new - for quite a few years now we’ve seen more and more families looking for a better lifestyle by moving right away from big cities. Of course the pandemic lockdowns have expedited the Exodus to Affordable Lifestyle, especially in Victoria, but this had already been occurring for quite some time.
- In Sydney, in the 5 years to April 2020 the overall price growth has been surpassed by a sizeable margin by Newcastle, Wollongong, Coffs Harbour, Port Macquarie, Byron Bay, Ballina, and many more.
- In Victoria, both Ballarat and Geelong have outshone Melbourne for the past 5 years, and currently there are many regional centres showing excellent growth at a time when the capital city’s growth rate is falling.
- In Queensland, both the Gold Coast and the Sunshine Coast are outperforming Brisbane, and have done so for the past 5 years.
So let’s continue looking ahead to the future, and it’s clear that the future lies in regional property markets.
Today, the Exodus to Affordable Lifestyle is the major trend in real estate, and it’s this trend that’s driving real estate consumers to regional markets and smaller capital cities. The Exodus to Affordable Lifestyle has already encouraged price growth at numerous locations across the country, and it appears it will continue to do so for a long time to come.
Property Investment Is Not Necessarily A Waiting Game – It’s All About Research!
So many investors, and would-be investors, state that they’re just ‘waiting to see what happens’, so they put their property investing plans on hold.
Anyone planning to invest in the property market must have a thorough understanding of the fundamentals of property investing, including statistics, but they must also do their own research. Maybe today’s property investment market is not a ‘wait-and-see’ market, and now could very well be the best time to invest!
Here Are Our Top Buying Tips for property investors
- There’s no perfect time to invest, ‘timing’ the market is not as good as ‘time in’ the market.
- Every 10 to 12 years property prices double, but a recession usually delivers a big bounce-back, like in 2008 when property prices increased by 20% to 40% within just 2 years.
- Australia, Singapore, New Zealand, and Israel are the top 4 countries predicted to deliver a property increase post-COVID-19.
- Buying property during the coronavirus pandemic is not for those seeking to get rich quick – it’s for the long-term strategists.
- There’s been a dramatic drop in rental vacancies right across Australia since the arrival of COVID, which means that less properties are vacant.