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From: Dan D
Hi all,
I've got myself a Residex report on projected capital growth for the top 100 postcodes in Brisbane.
A few oddities in there. I noted that while the inner city perimeter postcodes had fairly mundane growth for the next 3 and 5 years, based on historical performance, the corridors along the Sunshine and Gold coasts and some outlying suburban patches show some quite spectacular capital growth expectations.
Looking a little closer at those spectacular numbers, it is apparent that those areas are in fact new and in progress residential developments, as well as proposed developments with the sod as yet unturned, but plans approved and even streets already outlined in UBD. Question: is the historical growth of those developments due to developers moving in and pushing up land prices? I would suggest that this indeed the case since we are talking about previously dead regional country areas, and which are still dead ( in terms of current population numbers).
The projections in areas of new developments must be taking into account that there will be a demand for housing there which will then produce the expected capital growth. I wonder however where the buyers are supposed to come from and where will they be working to service their mortgages? The Sunshine Coast hinterland is not exactly full of career opportunities. Brisbane generally is not a job hunters paradise.
I'd be very cautious about investing in those new developments.
Does anyone have any thoughts on this? Am I misinterpreting the growth projections? Am I missing out on something?
Dan
Hi all,
I've got myself a Residex report on projected capital growth for the top 100 postcodes in Brisbane.
A few oddities in there. I noted that while the inner city perimeter postcodes had fairly mundane growth for the next 3 and 5 years, based on historical performance, the corridors along the Sunshine and Gold coasts and some outlying suburban patches show some quite spectacular capital growth expectations.
Looking a little closer at those spectacular numbers, it is apparent that those areas are in fact new and in progress residential developments, as well as proposed developments with the sod as yet unturned, but plans approved and even streets already outlined in UBD. Question: is the historical growth of those developments due to developers moving in and pushing up land prices? I would suggest that this indeed the case since we are talking about previously dead regional country areas, and which are still dead ( in terms of current population numbers).
The projections in areas of new developments must be taking into account that there will be a demand for housing there which will then produce the expected capital growth. I wonder however where the buyers are supposed to come from and where will they be working to service their mortgages? The Sunshine Coast hinterland is not exactly full of career opportunities. Brisbane generally is not a job hunters paradise.
I'd be very cautious about investing in those new developments.
Does anyone have any thoughts on this? Am I misinterpreting the growth projections? Am I missing out on something?
Dan
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