InvestorKit reveals 10 hotspots for property investment

Buyer’s agency InvestorKit has released its latest Market Pressure Review, identifying 10 economies across Australia where the housing market presents significant opportunities for buyers and investors.

Unveiling market potentials

The report indicated a relaxation in housing market pressures within both capital city and regional economies, spotlighting areas with promising growth prospects and attractive property prices.

“Australia’s economy has been supported by robust population growth and a more-active-than-ever active job market,” said Arjun Paliwal (pictured above), InvestorKit founder and head of research.

Despite the dampening effects of RBA rate hikes, Paliwal sees enduring vitality in local economies and anticipates continued growth.

“For the property market, supply has struggled to meet demand leading to astronomical pricing in our capital cities and regional hubs,” he said. “While supply strains continue, the narrative is changing, and we are beginning to see easing pressure across key markets.”

Top capital city economies with opportunities

1. Greater Sydney emerges as a significant player, with economic contributions bolstered by extensive infrastructure projects. However, the Sydney housing market may see a slowdown in growth due to a balance of demand and supply, alongside prevailing affordability issues.
2. Greater Melbourne and Geelong are highlighted for their economic strength and population growth, driven by net overseas migration and large-scale transport projects. The report suggested an upcoming phase of exponential growth despite current market relaxations.
3. Southeast Queensland, including Greater Brisbane, Gold Coast, and Sunshine Coast, benefits from notable internal migration and infrastructure investments, promising a strong economic outlook and housing market growth.
4. Greater Adelaide is praised for its economic recovery and market activity, with Adelaide expected to outperform other capitals in the near future due to a balanced mix of affordability and livability.
5. Greater Perth stood out for its economic resurgence and property market performance, driven by commodity prices and migration trends, positioning Perth as a leading market for potential investors.

Top regional economies for investment

1. Newcastle and Port Stephens show potential for recovery and growth, driven by infrastructure improvements and population growth, despite current affordability challenges.
2. Toowoomba displays a tight property and rental market, indicating continued but modest growth.
3. Tamworth is on the verge of recovery, fueled by diverse economic activities and a potential uptick in housing demand.
4. Townsville has seen economic acceleration since 2020, with a promising housing market buoyed by job opportunities and affordability.
5. Dubbo faces a cooling period but remains poised for future growth with strengthening local economy and housing demand.

Paliwal emphasised the emergence of investment and ownership opportunities in these markets, advocating for data-driven decision-making to capitalise on easing price pressures and address supply and affordability challenges.

“With easing pricing pressure, we hope to see renewed investor activity, which will help unlock ongoing supply and vacancy challenges in areas with strong population growth and job activity,” he said. “This will ease affordability issues and ensure every Australian can access a home.”

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