Our recommendation is
new four bedroom houses in the North Lakes (QLD) area. We are seeing capital growth rates at over 8% so far this year on properties we have bought there.
The rents are up by $40 per week from this time last year. The longest delay in renting a new property (that we have experienced) is 12 days from completion. Most of the new properties are tenanted within 2-4 days of completion. Most agents having a waiting list.
Going forward there looks to be a continued shortage of developable land over the next 10 years. We are seeing subdivision stages (30-50 blocks) selling out in 3-5 weeks from release. A year ago these were taking 3 months to sell out.
Example of current pricing in the North Lakes market:
- Land 420m2<>$244,000
- 4 bedroom house (220m2) <>$220,000
- Rents <>$430-440pw
The North Lakes region:
- Mango Hill
- North Lakes
- Griffen
The region is looking very strong for investors seeking to enter the market and capitalise on infrastructure spending, job creation and suburb gentrification.
Projects to note include:
- North Lakes Westfiled redevelopment
- Costco retail development
- North Lakes Business park which is to employ 20,000 people over the next five years
- $1.2 billion Moreton Bay rail link to be completed in 2016
Vendor Discounting Rate 6%
Days on Market 88
Stock on Market 0.17%
Vacancy Rates 0.3%
Internet Search Interest 34 (
www.realestate.com.au)
Rental Yields 5.45%
Sales (over 4 QTR's) 150, 172, 222, 355 (RP Data)