Report highlights consistent sales activity as a key driver of reliable capital growth
Property investors often chase the next booming hotspot, but steady markets can deliver significant long-term growth, according to the Hotspotting Price Predictor Index (PPI) for Summer 2024.
The report highlights that while purchasing in emerging markets can yield rapid returns, consistent markets offer safer, reliable growth.
“The value of consistent markets should not be overlooked,” said Hotspotting director Terry Ryder (pictured above). “Sure, consistent markets are not as thrilling as the supposed ‘next big thing’, but these areas offer a safe harbour for property buyers with the culmination of steady price growth over multiple years producing significant results over the medium- to long-term.”
Ryder noted that while the Price Predictor Index primarily identifies areas showing rising sales activity, it also underscores the benefits of locations with steady sales over several years.
“Buderim on the Sunshine Coast, for example, has had remarkably consistent sales volumes for the past three years and its five-year capital growth average is 13.3% per year, with its median house price rising 14% to $1,250,000 in the past 12 months,” said Hotspotting general manager Tim Graham. “Mandurah in WA has also delivered consistent quarterly sales for over three years and its five-year capital growth average is 16% per year.”
Queensland dominates the report’s top 50 consistent suburbs, with 29 locations across Brisbane and regional areas. Ryder attributed this to internal migration trends favouring Queensland and the state’s affordable regional markets with strong rental yields.
Regional areas are also a key focus, with half of the top 50 consistent suburbs located outside capital cities. Ryder noted a shift in the property market, with regional markets outperforming some traditional urban centres.
New South Wales and Victoria also featured prominently, with 10 and six suburbs on the list, respectively. Meanwhile, Western Australia accounted for four.
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