Investors who are looking for new opportunities in Australia's property market should check out the middle-ring Brisbane and Adelaide suburbs. These two areas have been identified as the new property hotspots in the cooling markets of the country according to specialists.
They say that Brisbane and Adelaide, particularly those areas near popular schools are offering potential income growth and capital gains, as reported by Financial Review. According to predictions, Brisbane will have the strongest growth in 2016 when it comes to property prices at 3 percent. This is based on the latest NAB Residential Property Survey, The Courier Mail reported.
While NAB forecast Adelaide growth to be not that much at 0.2 percent, recently released CoreLogic RP Data Property Market Indicator Summary suggested that prices in the city will catch up. Adelaide home prices rose 0.7 percent over the past week and 1.3 percent last month, the highest increases among other capitals.
Meanwhile, Financial Review said capital gains in the former hot markets Melbourne and Sydney are going to slow down. Perth and Darwin, the mining boom towns, on one hand will continue to see falling rents and prices. The situation in other parts of the mainland will remain dawdling.
"No longer is just being in the market a guarantee of profit," says Jason Black, managing director of broker The Australian Lending and Investment Centre. "The smart money is looking for pockets of excellence in existing hot markets and further afield to other markets formerly left in the shadow of Melbourne and Sydney."
Economist Jonathon Tepper, founder of Variant Perception, said via The Motley Fool that "Australia now has one of the biggest housing bubbles in history." According to Tepper's prediction, the country's housing market could decline by as low as 50 percent in Melbourne and Sydney, and 80 percent in mining towns.