Why There’s Always An Opportunity for Savvy Investors

One of the biggest mistakes new property investors make is to assume that Australia is just one big property market.

If you fall into the trap of thinking that all property markets in all states and even all suburbs move in sync with one another, then you’ll likely be missing out on a significant opportunity to find excellent investment opportunities.

In reality, there are tens of thousands of smaller property markets all around the country. They can be broken up into areas as small as a suburb or you can even find opportunities that can vary significantly on a street by street basis within a suburb.

When we see headlines in the media, such as property markets are booming or markets are set to decline, you really shouldn’t be paying attention. It’s far more important to identify opportunities on a more localised level and look at the factors that impact those areas.

Source: CoreLogic

To highlight the way house prices can move in different areas we only have to look at the discrepancy in house price growth over the last few months. While the media commentators would have you believe that everywhere is booming, the reality is that there is a clear divide between different housing markets.

In the past three months, it’s very clear to see that there is already a clear divergence between the capital city markets and also regional areas. 

The latest data from CoreLogic shows that if you had purchased a property three months ago in either Brisbane or Adelaide, you could have seen the growth of up to 8.3 per cent. In contrast, if you bought in Melbourne three months ago, your growth would have been just 0.8 per cent or only slightly better at 1.2 per cent in Perth.

Breaking this down even further we can see that had you purchased a house in Brisbane and not a unit you would have seen even stronger growth over the last quarter at 9.1 per cent.

If we dive deeper, we can see that the performance of some suburbs across QLD is far superior to the broader Brisbane market.

Across Brisbane, CoreLogic notes that houses grew in value by ​​29.2 per cent in the past 12 months, which is a great result by anyone's measure. However, there were still plenty of suburbs that vastly outperformed that level such as Highfields which saw 48.71 per cent growth, or Main Beach, which increased in value by a staggering 56.18 per cent.

We can see a very similar trend emerging in South Australia as well. The housing market in Adelaide is 24.8 per cent higher over the past 12 months, but again, houses have clearly outperformed.

House values are up by 27.3 per cent in the past year across Adelaide, while units have only increased by 9.5 per cent over that same period of time.

Again, there are also suburbs and towns in South Australia that have seen far greater returns than the average. For example, houses in Parkside are up 46.03 per cent, while Mannum is 42.86 per cent higher and Manningham has jumped 41.52 per cent.

What this highlights is that if you’re investing in property it’s far more important to break down what is going on in a given area, rather than try and look at how the overall property market is performing.

On a suburb level, look at the number of sales that are taking place annually and compare that to how tight the listings are. A suburb that sees high transaction volumes clearly has high demand and if you couple that with a low supply of listings then you have a formula that will put upward pressure on house prices. This has been a clear reason why many suburbs of Brisbane and Adelaide have outperformed as listings are tight and demand has been strong.

When you read headlines talking about what the overall Australian property market is doing it’s important to take that with a grain of salt.

For savvy buyers and investors, there is always a good opportunity to purchase a property in a location that is ripe for future growth. Don’t make the mistake of buying in your backyard just because it might feel comfortable.

Ignore the headlines and branch out and find the best investment opportunity you can and stop listening to the media experts.

If you’re considering buying an investment property in the next few months, feel free to get in touch and discuss your goals. By looking at the whole country, you can potentially find hidden gems that will significantly outperform the current market.

Your Takeaway

In 2022, we have been already witnessing a lot more fluctuation in the Australian Property market. In such an environment, it’s really hard to identify and pin-point a particular strategy or long term goal.

So if you are looking to buy an investment property, arizabuyersagency.com.au is here to help you in your next property investment.

Reach out to us at our email address helpme@arizabuyersagency.com.au or visit our Contact Us page for a Free and No-obligation callback.