Fuelled with a passion for property, design and innovation, he has a clear vision for the future of property investment built on a solid financial model.
If you are considering getting started in property investment or building out your portfolio, it’s important to know where the real opportunities are for profitable investments in 2021. With nearly 9,000 suburbs in Australia, we are many markets, not just one. We’re already seeing the property market bounce back and surge ahead across a range of regions.
DPN’s Managing Director, Sam Khalil, shares his 25 years’ experience in successful property investment strategy with his annual Property Market Outlook.
The facts behind the media hype
On the back of 2020’s doom and gloom property predictions, we’ve now entered the ‘post- pandemic market’. Despite a technical recession for part of 2020, many people have benefited due to the government’s expansionary fiscal policies put in place to ease the burden during the worst of the COVID-19 pandemic.
Employment is growing ahead of projections, housing values have surpassed COVID levels and interest rates remain at generational lows. Although immigration has paused, nearly 500,000 expats have returned to Australia, further pushing growth. The country’s economy is in good shape and there’s enough momentum across several industries to avoid the predicted crash.
Change in dwelling values
Across the last quarter, every major capital city has increased in value as an annual change. In February alone, we’ve seen more major growth than some cities saw over the entire year. Regional demand has increased significantly, with the number one driver being the ability to work from home with flexible arrangements that allow for better lifestyle opportunities. This is a direct result of the pandemic lockdown.
Therefore, regional house prices have risen at twice the levels of capital cities. With jobs and population growth, recreational perks and better affordability, lifestyle regions are experiencing significant momentum.
Source: CoreLogic Home Value Index January 2021
Key growth regions and investment hotspots include:
The Macarthur region is the new growth corridor to Western Sydney and is projected to be home to more than 600,000 people by 2036. Set to feed growth, the $10 billion Western Sydney Aerotropolis consists of an airport with commercial and transport infrastructure.
The major economic hubs are Campbelltown, Camden and Picton, with the new city of Wilton New Town creating another commercial precinct. In terms of capital growth, an example is the suburb of Thirlmere with 8% p.a. predicted growth over the next five years.
When Sydney hit its peak in 2017, the Hunter Region kept growing. With the largest regional economy in NSW, it's projected to grow by nearly 75% by 2036, to $64.8 billion. Lifestyle opportunities join booming jobs growth, with a 19% increase forecast by 2036.
There’s a need for over 40,000 new dwellings to meet demand by 2041. Major infrastructure includes $1.6 billion committed to the New England Highway upgrade.
South East Queensland
With around 75,000 new residents each year, sunny South East Queensland’s population is set to soar towards 5.3 million by 2030. More than a million new jobs are projected by 2040 across prime industries including tech and tourism. Among a range of infrastructure projects are Brisbane’s $5.4 million Cross River Rail, the $3.6 billion Queens Wharf development and Maroochydore’s greenfield City Centre.
To meet demand, 30,000 new dwellings are needed each year. Predicted capital growth includes 6% p.a. over the next five years in the suburb of Park Ridge. Rents in Brisbane’s CBD are on the rise and there’s a movement towards buying as a more affordable option.
Source: SQM Research February 2021
A popular lifestyle alternative to Sydney, Wollongong’s population is set to rise by 14.5% by 2036. With a thriving foodie culture and coastal views already attracting residents, planned infrastructure increases the appeal.
The growth of Port Kembla will create hundreds of jobs and a $500 million investment in the University of Wollongong welcomes a new wellbeing precinct. The suburb of Horsley is predicted to deliver 8% p.a. capital growth over the next five years.
The investment hotspot of Googong near Queanbeyan
Investment hotspots include the suburb of Googong, with predicted capital growth of 9% p.a. over the next five years.
Within an easy drive of 15 minutes to the Canberra CBD and the airport, Queanbeyan’s population is predicted to rise by 27% by 2036. Countryside views and regional lifestyle perks combine with an affordable median house price of $621,000.
Road upgrades, a civic centre and wind farm operations are the focus of approximately $1 billion committed to infrastructure. Investment hotspots include the suburb of Googong, with predicted capital growth of 9% p.a. over the next five years.
Tweed Coast, NSW
Stunning beaches and close proximity to the Gold Coast and Brisbane ensure that Tweed Heads is the fastest growing city in the NSW north coast region. The population is tipped to rise by 36% over the next 20 years, especially due to lifestyle opportunities for the remote workforce.
With $1 billion committed to the Pacific Motorway Lakes upgrade and $550 million in new mixed-use developments planned, infrastructure is on the rise. Over the last 10 years, the suburb of Tweed Heads West returned 8% p.a. capital growth and there’s a housing demand of more than 16,000 new dwellings.
The right approach with an expert team
Real estate is the goose that lays the golden eggs. It’s something that pays you month after month, whether you are working or not.
Utilising independent research and surrounding yourself with qualified and experienced people is the key to making profitable investments in 2021. With a great accountant, mortgage broker, property strategist, solicitor and property manager on your team, you’ll stay firmly on track to investment success and building your own ‘golden eggs’.
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