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Hot 100 local edition

In compiling the 2008 Hot 100, API asked its panel of experts to take a national view, choosing the hottest property from across the country.

As a result, the Northern Territory, Tasmania, the ACT and Western Australia only had small representations on the list.

For investors focused on these markets, we’ve asked local experts to identify the cream of the crop.

Northern Territory

Herron Todd White Darwin director Terry Roth says the recent announcement that Inpex will develop its $12 billion LNG processing plant on Darwin Harbour has galvanised the Darwin residential market, especially at the more affordable end.

Roth names the following suburbs as the city’s hottest:

The Gardens
A small suburb close to the CBD and the Botanic Gardens. It now comprises mainly townhouses and smaller unit developments. It is also popular with short-term rentals.

Fannie Bay
The medium-density residential area of Fannie Bay has always been popular with tenants due to its proximity to the CBD and other services.

Nakara
Close to Casuarina shopping centre and Charles Darwin University, as well as the hospital, it’s popular with workers in these locations. Mainly single housing.

Millner
Mainly older post-cyclone housing in a convenient position in the northern suburbs.

Rosebery
A “mortgage belt” type suburb with new single dwellings in the satellite city of Palmerston. Popular with Defence Housing.

Tasmania

Andrew Peck, a director with Herron Todd White in Tasmania, says the island state is out-performing most mainland states on economic indicators. Nonetheless, he is tipping some softening of prices, especially in commuter localities, due to fuel prices, and in the premium sector, due to plummeting share prices.

Still, in that environment, he says some areas will perform more strongly. His hotspots picks for Tasmania are:

Rosebery
Rosebery is hot for all the same reasons as Zeehan, which made the main Hot 100 list.

“The west coast of Tasmania is going through Tasmania's version of a mining boom,” Peck explains. “This has resulted in significant capital expenditure at the Allegiance Nickel Mine – now owned by Zinifex – and the former Renison site.

“The population influx has resulted in a significant housing shortage, which in turn has put upward pressure on rental levels and market pricing. Many properties in both centres are being purchased sight unseen by speculative interstate investors solely on the basis of the rental return and perceived future capital growth.

“We are now seeing the odd sale above $200,000 although most still remain around or under $150,000 with rentals at $50 to $60 a bedroom for a three-bedroom home – (that is, a) typical metal-clad mining house.

Tullah and Queenstown
These are the next outlying townships on the west coast which should pick up the benefits of the mining boom.

Central Launceston and Central Hobart
The inner-city suburbs of Launceston and Hobart were named on last year’s Hot 100 list, and Peck says they’re still among the state’s hotspots.
“We expect continued demand for inner-city living due to continued fuel price pressure in the Apple Isle and relative poor public transport infrastructure,” Peck says.

Australian Capital Territory

Paula Sharp, buyers agent from Sharp Property Solutions, believes Canberra’s market will be in a readjustment phase over the coming 12 months, with prices to stabilise.

However, she’s picked the following suburbs to outperform the rest of the market:

Deakin
“Deakin has two large vacant sites that will be redeveloped over the next two years and sales have begun for one of these,” Sharp explains. “This area lacks quality upmarket apartment-style property and this will fill that gap.

“The location is great, close to town, Manuka and great local shops. These properties are high quality and should help increase the local market prices.”

Griffith/Narrabundah
“(The) median sale price is only slightly higher than the land value, so there are some good buys in this area. There has been a lot of rejuvenation and knock-down (and) rebuilds in this area, and the prices should start to pick up. (This is) a great location for people working in defence, the airport area, or people with older children at the local private schools – it is close to four major private high schools. There’re great shopping areas around with great restaurants and markets.”

Franklin
“This is a new suburb in the north which seems to have a better design. They have improved on the planning problems they have in other new areas,” Sharp says. “It’s well located and closer to good roads. There are larger blocks and it has attracted better quality homes being built.”

Barton
“In recent years Barton has been overshadowed by the new properties at Kingston,” Sharp notes. “Barton is well located but quieter and a little more private. Also median prices have remained low due to older one and two-bedroom units being the majority of the sales. Over the past two years more larger apartments have been built and there have been increased sales of houses, so it should show good growth in the short term.”

Bruce
Sharp says Bruce is a “great location close to sporting facilities, hospital, AIS, two universities, main roads and Civic”.

“There has been new land released and new houses in older areas usually always sell well, and represent good returns to investors,” she says.

Western Australia

Damian Collins, managing director of Momentum Wealth, says he believes all the WA suburbs he named in the 2007 Hot 100 remain “great long-term prospects”.

Those suburbs were: Belmont; Dianella; Padbury; Rockingham; and Scarborough.

Collins says the latest Australian Bureau of Statistics population growth projections have WA and Queensland as the two standout states over the next 20 and 50 years.

“In fact, WA was predicted to have the highest growth rate in Australia,” Collins notes. “Perth and Brisbane are my two favourite cities over the next 20 years for investment.”

As well as the suburbs he nominated last year, Collins adds two extra hotspots to his list:

Beaconsfield
“Beaconsfield is located just one suburb back from Fremantle's beaches, café culture and commercial precincts, with a much lower price tag,” Collins says.

“The recent success of townhouse developments in Fremantle and the Port Coogee development shows the enduring popularity of Fremantle, and the consistent demand from homebuyers in the area.”

Maylands
“Just six kilometres from the city and positioned right on the river, Maylands is great value for money compared to its pricey neighbours of Mount Lawley and Inglewood,” Collins says. “Properties located right near the river and properties located near the café strip are likely to experience the most consistent capital growth in the suburb. Rental demand is high too, due to the suburb's close proximity to the city.”

Please explain: For those locations named in the 2007 Hot 100 that showed negative growth over the past year, API asked the experts who nominated those suburbs to explain why the predicted growth didn’t occur. Read more

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