The major region set to deliver the holy grail of property investment returns

While investors naturally have an inclination to invest in close proximity to where they live that is not necessarily the best strategy.

A great property investment is one made up of both rental yields and capital growth and more times than not that perfect combination is not obtained in a location close to where an investor lives

Yet it can be quite daunting to identify where those alternative preferred options.

Even within that price growth and rental income combination it is quite possible that you can get one of those two components of a good investment but not both.

You may well find a suburb or an area where yields are extremely high but capital growth is not particularly significant, or that you invest in an area showing significant capital growth but not great rental yields.

With a great deal of research, you can obtain markets throughout Australia with a favourable combination but there is one area that stands out more than any other.

Migration, population growth driving the market

The latest research has shown that South East Queensland continues to record the highest property values growth, with Brisbane now surpassing Sydney as the most expensive average priced real estate in Australia.

This is because of the enormous amount of migration to South East Queensland, resulting in population growth in excess of the volume of new properties being constructed.

That imbalance of supply and demand will continue for many years, so strong growth in property values will continue.

Likewise, there is a significant shortage in rental properties, so yields are currently one of the best amongst the best in the country. South East Queensland continues to record amongst the strongest rental growth in the country.

The most significant consideration is the 2032 Olympic Games.

I have a great deal of experience and knowledge around the effect of the Commonwealth and Olympic Games on cities.

I was on the bid committee for the 2018 Commonwealth Games and subsequently on the organising committee for that event.

It necessitated a great deal of research into how the Games affect real estate prices.

On the Gold Coast, the 2018 Commonwealth Games triggered $18 billion in infrastructure spending.

Such events force improvements in roads, rail and transport systems in general.

A significant amount of money is invested in sporting venues and a host of other government investments in a wide range of infrastructure areas.

What is of incredible significance is that it has a trickledown effect to create a huge amount of spending on private enterprise infrastructure.

When we were bidding for the Commonwealth Games the then somewhat tired Star Casino said that if the city won the rights to the Commonwealth Games, they would spend $345 million on a major renovation to overhaul the casino.

We won the Games and they spent that money and have continued to spend money ever since, with the construction of three new towers. When The Star renovated, the nearby Pacific Fair Shopping Centre realised they were looking aged as well and so undertook an $840 million refurbishment, making it one of the best shopping centres in the southern hemisphere.

Olympian returns

I could go on and on about how the $18 billion manifested in the Gold Coast.

These improvements and so many more have made the city that much more attractive to live in and it laid the foundation for the incredible population growth and subsequent real estate prices ever since.

There is an old saying, “build it and they will come.”

I have no doubt that the 2032 Olympic Games will have the same effect on South East Queensland.

It does not mean every suburb and every street and property will get the same benefit.

The greatest benefit always comes to those closest to where the infrastructure spending occurs. For example, Victoria Park, the site of the new stadium, will see properties in the surrounding areas experience huge price growth.

So too will suburbs on the Gold Coast, such as Southport and Labrador, where they will be hosting some Olympic Games sporting competitions.

There is no question South East Queensland as a whole will get a big uplift in property values. No one will quantify what that amount is but one of their lasting legacies will be that the eyes of the world will be on the region.

That will generate a huge boost in tourism, and with tourism comes investment dollars and even migration.

Anyone looking at investing in real estate should be looking at where they get the best yields and the greatest capital growth in the years ahead.

Nowhere stands out as a better option than South East Queensland.