Which areas do you think will experience strong (>15%) growth in 2008?

[Perp]

You can vote for multiple options - throw in your 2c worth!

And I know these are big groupings - logistics makes it impossible to break it down into every "group of suburbs". So quite possibly you think that a few suburbs within a city are going to boom, but not the city overall. In that case, choose the city in the poll, and amplify which suburbs in a post.

 

[BayView]

None.

But, there will selected areas within some of the places you mentioned that will.

The trick is to narrow it down to those smaller areas.

 

[bailz66]

I would have voted for middle ring suburbs in melbourne

Not outer and inner has already had a run though perhaps a bit more left

 

[BayView]

I would have voted for middle ring suburbs in melbourne
Not outer and inner has already had a run though perhaps a bit more left

Agree, but not >15%.

They are not that cheap, and the rates haven't gone down yet, and the oil is going up.

 

[evand]

Can you explain your reasoning here?

I would have voted for middle ring suburbs in melbourne

Not outer and inner has already had a run though perhaps a bit more left

 

[sash]

I voted for outer Melbourne and Adelaide. I think the entry point into Brisbane houses is very high...I feel that interest rates will slow this down.

My feeling is that outer Melbourne is going to gain alot a momentum this year. Last year that inner surburbs has fantastic gains and the middle ring did well. But with interest rates moving up...people will still get into the market but at lower prices....this is an opportune time for getting into lower priced surburbs in the outer Southeast, North, Northeast, and Western surburbs.

Adelaide's boom will continue.....in particular the Northern and Western surburbs driven by Defence and Infrastructure spend.

Sydney's Westerns surburbs will present some great buying opportunities this year......but a real recovery there is probably 9-12 months off. As people are still paying high mortagages there. If interest rates drop these surburbs will really take off. Houses bought for 320K-400K in the last boom in 2003 now sell for 260K-330K. The rental yield is still low at 4%-4.5%.....once they hit 5% plus and base rates drop to say 7.5% from the current 8.5%....the investment proposition is more attractive.

 

[bailz66]

Can you explain your reasoning here?

Hey Evand

This is obviously just my opinion however

Towards the end of last year prices in middle suburbs (14-20km) from the city saw some big increases. Speaking to people at auctions around our area we found that a lot of them had been priced out of the market that they were looking at in the last 6 months and had to settle a bit further out.

The demographic of this area are not struggling mortgage belt people who struggle when interest rates go up they are people that have bought within their means but not over extended them selves. If they were struggler's they would settle further out.

Im not saying that if you buy in these areas you will see good short term growth but with many people being forced out of inner melbourne with rising rents and property prices anywhere close to transport and infrastructure should see extreamly good growth in the short term. An interest rate hike or 2 wont change that but 3-4 rate rises might.

Then again i could be completely wrong and only time will tell

Quote from RP Data

Melbourne middle ring suburbs are set to enjoy solid growth during 2008 The middle ring suburbs of Melbourne, particularly suburbs located between 10km and 20km to the west of the Melbourne CBD are relatively affordable compared to suburbs located the same distance from the Sydney CBD. The relative affordability and strategic location of these regions is likely to see them record above average rates of growth during 2008.

Agree, but not >15%.

They are not that cheap, and the rates haven't gone down yet, and the oil is going up.

You can find quite a few pockets that have yet to see the growth many of these suburbs saw at the end of last year.

Bundoora for example saw about 13% change where next door at greensborough, watsonia saw 20%+ growth and on the other side reservoir saw 24% growth. These markets were accelerating towards the end of the year with between 13-16% in the september quarter. Bundoora saw 3% of that.

There are pockets of this area that will easily get the growth of 15% plus going forward but there may be a few that slow.

I will be happy with 10% and take 15+ as a bonus but i think 15 is achievable

Figures above are from REIV
http://realestateview.com.au/median/

 

[willair]

In that case, choose the city in the poll, and amplify which suburbs in a post.

IMHO..
I voted for Brisbane-inner southside from West End to Rocklea area's or anything along the riverfront,Brisbane covers a large inner area and the only problem i can see is the number of rental properties that are still on the market unlet for this time of the year..willair..
BTW we invest in the above area's so I guess i'm one-sided...

 

[angela]

I voted for "other" as I'm confident the Ipswich region has more room to move.

 

[grossreal]

hi all
other for me.
as I think cbd sydney but commercial not resi.
they are tipped for 40% mirvac,20% cbre, and 20% sydney herald so if I was picking a horse I would be put my dollar on this.
and for what is worth cbd bris is at 20% and think 20% to 25%
and melb 15 to 20%
all cbd's and all comm vacant.
this very crystal ball rubbing

 

[Dazz]

I noticed no-one yet has chosen Perth, which is mightily strange but there ya go.....so I'll throw my hat (and bat and ball ) into the Perth ring. That's the 6000 postcode, not some scraggy 800K house out in domestic drossville.

With rents increasing by 100% last year, and rents expected to increase (IMO) by a further 100% this year, coupled with a lack of available space, and demand coming out your ying yang from companies right in the thick of the powerhouse of the Ozzy economy - there's only one way for it to go, and that's through the roof. That's a technical term I think for slightly more than 15% p.a.

These magnificent 30 and 40 year supply contracts that have been executed over the past 3, 5 and 10 years are just starting to make their presence felt. The best thing is, the revenue from these contracts drive everything, and do not recognise or respect any of the normal housing yo-yo economic clocks. They just power on through regardless, bearing no relation to some small nickel or gold fizzle. Yes - it's different this time.

Anyway, we put our money where our mouth is about 12 months ago and we've been strapped in and hanging on by the whites of our knuckles for dear life. It's been a hell of a ride so far, and with an enormous LONG TERM oil and mining rocket powering along underneath us...we are head down - bum up for the long haul.

Negotiating and executing leasing deals with CEO's who have cash dripping out of their pockets and desparate for a nice place to house their growing corporate gaggle is a pleasant and dead easy task.

 

[CairnsInvestor]

I noticed no-one yet has chosen Perth, which is mightily strange but there ya go.....so I'll throw my hat (and bat and ball ) into the Perth ring. That's the 6000 postcode, not some scraggy 800K house out in domestic drossville.
QUOTE]

DAZ IS BACK!! WOO HOO!

 

[grossreal]

hi dazzling
I have noticed that those same money dripping, gold carrying, red sand in there shoes guys are buying up high end water or ocean front, holiday, second home units, in prime real estate.
couple with that the increase in your networth guys in wa that have more money then they can poke a stick at are following those guys for investments.
all good fun

 

[LynnH]

Daz

Great to see you back again!!!

Cheeers
LynnH

 

[steveadl]

Adelaide still has a lot of growth left in it.

 

[eggnog]

Welcome back Daz.

 

[Ausprop]

The additions to 6000 would be 6005, good ol West Perth, home of the mining houses.

and to stay on track with the resi theme and in line with Gross's comments, I would include 6281 - Eagle Bay / Dunsborough / Yallingup, a beachside home that is every new money entrepreneur's essential fashion accessory and has cap growth way up into the double digits.

 

[lizzie]

according to the australian property developer mag (good read for those interested in watching what the big boys are up to), during a recent pow wow of the major development players at the residential development property council, ie lend lease, stockland etc, their bets are on s/e qld (46% of voters), melbourne (19%) and newcastle/hunter (15%) being the big three areas to invest for the next decade.

they obviously have a lot more research funds than i - so i might copy their call.

besides - i like newcastle. it's got a pretty open minded council and stable yet expanding population without the wild suburb swings of sydney.

 

[grossreal]

hi lizzie
suppose they didn't say who the 42% were that would be interesting.

s/e qld seems to be either very hot at the moment or heating up.
there is a very big influx of people and any ideas from people here why and don't say because of the weather.
it seems to be across the border as well into the nrth nsw so its not because of different rules for buying.
I am trying to work out why the very high rates of growth.
maybe some one has been keeping an eye on it.

 

[willair]

Grossreal, not sure if this will help..willair..
http://svc189.bne146v.server-web.com/statistical_portrait/inner_city/
http://svc189.bne146v.server-web.com/statistical_portrait/brisbanes_regions/