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Readers' choice hotspots
When API published its inaugural Hot 100 list in November and December 2007, we asked our readers to nominate locations that didn’t make the list but which they feel will deliver strong capital growth over the coming 12 months.
Following are the responses from API’s readers. All analysis and commentary was provided by the various readers who suggested these areas.
Atwell, WA
Atwell is south of the Perth CBD. Thanks to the expansion of the Gateway shopping centre, the new Cockburn Central medium-density development, the pending railway line and a local high school under way, Atwell and the surrounding suburbs which make up Atwell are poised to see continued steady growth for many years to come.
Also not far away is the Coogee Marina which is under construction.
The quality of homes being built in these areas, particularly Harvest Lakes and Aubin Grove, show that owner-occupiers intend to make it a top-quality area to live in.
Prices are relatively high and rentals are in desperate demand in the area. With increasing interest rates in the new year there may be some good buys in these areas, with the knowledge that the investment has all the right fundamentals for future growth and infrastructure surrounding it. (I own property in Atwell).
Bribie Island, Qld
Where else can you buy a three-bedroom house for between $375,000 and $450,000 one hour from a capital city on an island? Land is at a premium as there is not much else left to buy because of the restrictions on development.
Broome, WA
I visited Broome a couple of months ago and was astonished at the amount of infrastructure that is currently under way and to come. Major roads from the town centre to Cable Beach are being widened and diverted to cater to larger traffic flows; more shopping centres and smaller boutique shops have been added; and subdivisions are being built out behind Cable Beach.
After speaking to a local hotel manager in Cable Beach I soon realised what a great medium to long-term investment this area currently is. Prices are in the $800,000 to $1.1 million mark in the Cable Beach area with rents being achieved of $900 per week. And these are with corporate tenants.
I also know that Woodside is leasing properties in the area to accommodate its workforce for the upcoming Browse Basin project. This will see Broome’s population increase in the coming years. There are also rumours of a casino being developed on the site of the caravan park behind Cable Beach Club. (I don’t own property in Broome.)
Copper Triangle, SA
The Copper Triangle is within one and a half hours of Adelaide, making it a popular spot for tourism. Many people have holiday homes in the coastal towns. The area includes:
- Moonta/Moonta Bay – quiet country towns, beautiful beaches.
- Port Hughes – beautiful beaches, quiet getaway, Greg Norman golf course and resort occurring.
- Wallaroo – now has a ferry operating to Lucky Bay making access to Port Lincoln more convenient, new marina and development at North Beach.
- Wallaroo, Kadina – growing as the commercial and shopping hub of the area.
Cooloola Cove, Qld
We have recently moved to Cooloola Cove in Queensland. We came on holiday in February 2007 and had a good feeling about the area. We bought a half acre of land for $110,000 and it's now worth $175,000.
Cooloola Cove is fifteen minutes from Rainbow Beach and five minutes from Tin Can Bay.
There is a shopping centre due to commence building early this year, with supermarket and speciality shops and a tavern. Also, a new road is planned through the national park that will take quite a lot of time off commuting to the Sunshine Coast. Not to mention a great climate.
Grovedale, Vic
With the Ring Road under construction, I would have thought that Grovedale in Geelong, being only seven minutes from most beaches and having a large shopping centre, rail station at Marshalltown Road, large swimming pool plus gym and sporting grounds, and schools (eg. Christian college and Deakin University) would have made some sort of impact in the Hot 100.
Osborne and Taperoo, SA
These suburbs are located between the Gulf St Vincent and Port River – and are close to the Newport Quays Development.
Properties situated closer to Newport Quays (i.e. those included in your Hot 100 – Exeter, Ethelton, Glanville and Largs Bay which is closer still to Osborne and Taperoo) are steadily increasing in prices while house prices in Osborne and Taperoo are still affordable.
Another consideration is the expansion of the Submarine Corp – with the generation of more employment, people will be looking to live closer to work and with "trendy" Semaphore not too far away and North Haven with its marinas, shops and great pub only the next suburb over, Osborne and Taperoo will definitely boom!
We live in Osborne and bought our first investment property at Taperoo – both houses are within walking distance to the beach, public transport, shops etc.
Just as a sideline, we bought our house (circa 1950) nine years ago for $86,500. We've done a bit of work to it and have just had it valued at more than $350,000. We bought the Taperoo property (complete with tenant) for $305,500.
River Heads, Qld
River Heads is a little-known area 15 minutes from Hervey Bay. It’s a gateway to Fraser Island; barges leave for Kingfisher Bay Resort from there about four times a day. I must confess that we live here and from our house we look at Kingfisher across the Great Sandy Straits.
We are just private investors and have no connection with the address but just love to tell people about this great place and compared to Burrum and Dundrowan it’s cheap.
Rockhampton, Qld
A great hotspot you missed is Rockhampton in central Queensland. A pretty, but vibrant "river town" previously fuelled by a university campus, agriculture and cattle (one of the largest beef providers in Queensland) is solid, safe and established, yet undervalued compared to its regional brothers and primed for massive growth.
It is only just starting to receive the ripple effect from Queensland's resource boom, which has seen the likes of Mackay, Gladstone, Bowen and Townsville explode.
There are actually suburbs with a median price of only $185,000 (up from $130,000 in 2006) but not for long as this suburb (Depot Hill) has had 12-month growth of 37.5 per cent and an amazing four-year growth of 224.6 per cent!
Rockhampton as a whole has a median of $298,000; in 2002 the median was only $107,000.
There is plenty of growth left if the medians of Mackay, Townsville, Bowen, Gladstone and even Emerald (a smaller inland town) are anything to go by.
It seems to be two to three years behind the rest of Queensland in regards to real estate movement. Rocky is a massive hotspot for the next two years.
Sandgate, Qld
I would like to nominate Sandgate in Brisbane as my hotspot tip. It is on the northern bayside and is similar to Wynnum.
It has a central shopping strip along Brighton Road, which I believe could develop into another Oxford Street as is at Bulimba. The shopping strip includes a Woolworths (a new one will be built by October) and gyms, liquor outlet, hairdressers, chemists, doctors, banks (just about all of them are represented), dentist, pet shop, bakery and cafés.
In the last few months a new unit complex which overlooks the lagoon was built.
From Brighton Road, you can look down the avenues to the foreshore, which has been recently redeveloped.
The median house price is currently $420,000.
Sandgate is serviced by rail and bus. It has everything – shopping, waterfront and easy access to the city by train – but it doesn't have the Manly or Bulimba prices.
Sandgate is slightly further out from the city than Wynnum (17 km compared with 14 km) but it has easy access to Redcliffe beaches and the barge to Moreton Island.
South Townsville, Qld
We must confess our daughter has just purchased a house there. We were there a month ago and it reminds us of East Brisbane 25 to 30 years ago. It offers wide streets, a mixture of housing, not much unit development; it's within walking distance of the CBD, has new bars and eateries opening everywhere and a lot of mining money pouring in. Lots of renos occurring and it’s relatively cheap.
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