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The Top
Five Regions That Should Be On Every Investor's Radar
1300 766 791 contactus@freedompropertyinvestors.com.au
freedompropertyinvestors.com.au
Disclaimer: Information contained herein is gathered from sources we deem to be reliable however warrant no guarantee as to the accuracy of third party data. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. All rights reserved.
July 2021
Welcome Thank you for reading this report. Freedom Property Investors is not a property company. We are a community of investors accessing the hidden market of positive cash-flow properties located in high growth locations across Australia. Led by Scott Kuru and Lianna Pan, two of Australia’s most successful property investors, we aim to provide our members with investment properties that outperform market averages for both capital growth and rental yield. Lianna Pan is one of only 3,000 qualified Actuaries in the country, and together we have perfected a detailed methodology
covering all fundamental aspects affecting the residential property market. Spending tens of thousands of dollars on our research, we also employ a full-time research team with access to property specific data not easily accessible to the everyday investor. Utilising a wide team of hundreds of experts around Australia, we work toward a common goal of helping create financial freedom for our members through property. We hope you enjoy this report and we look forward to helping you leverage our data insights to achieve your financial freedom.
Lianna Pan
Scott Kuru
Founder & Director of Research
Founder & CEO
The number one question on any property investor’s mind is where to invest. Out of thousands of suburbs and hundreds of regions around Australia, which ones are likely to be key as the Australian property market continues to grow at the fastest pace in more than 32 years.
04
The Top 5 Regions That Should Be On Every Investor's Radar
A
s any local real estate agent will tell you; location is one of the most important factors to consider when purchasing a property and can be the single most decisive factor for any tenant looking to live in that property. So investors must ask themselves two questions; where do people want to live and why do they want to live there. We know that Australia’s capital cities have long been the bread-and-butter of many investor’s portfolios. Populated central business districts, industrial trade, infrastructure and tourism are just a few of the pillars that support market stability in our major cities and thus provide a safe guarded investment property. Opportunities in these markets are usually found where new properties are in scarce supply. For example, in blue-chip areas surrounding some of the major cities, you may typically find a shortage of certain types of property. Hence why we hear stories of developers paying large sums for an amalgamation of land where demand far exceeds supply.
But it’s not just capital cities where opportunities lie. Our research points us towards regional markets with developed infrastructure, strong local economies, and significant capital growth potential. Since 2020 we have witnessed a mass migration of those living in metropolitan areas now moving towards regional hubs, as the notion of working remotely becomes more and more the norm for many businesses and their employees. Consequently, there are numerous areas and regions now seeing substantial price growth as high-earning individuals look to plant their roots down away from the hustle and bustle of metropolitan suburbs. Areas with infrastructure such as universities and new public amenities are typically seen as some of the more sought-after options, and additionally, will have greater employment figures and stronger rental demand. However, our research has also highlighted the need for adequate and quality housing in these regions which remain largely under-supplied. This is good news for investors who are looking to capitalise in an area that they may not have even considered up until now. Infact, there are multiple macro-economic factors that investors should consider when selecting an area or region for its return and growth potential. At Freedom Property Investors, we have perfected a detailed methodology that enables us to accurately predict which markets are poised for better-than-average returns. By utilising this calculated and strategic approach, it is easy to identify which of these areas will perform better than others.
Here are five of our top regions to look out for:
The Top 5 Regions That Should Be On Every Investor's Radar
05
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Australian Capital Territory The ACT, with its stable and resilient economy, is an ideal location for the long term property investor. Here, investors are offered the attractive balance of the bestof-both-worlds; that being regional but having all the facilities of any major city.
In terms of its livability, Canberra has been voted the most liveable city multiple times since 2014. Combine this with reasonable property prices and steady rental returns and you can see why many investors include the ACT on their watch-lists.
Canberra and surrounds has long been considered as a solid and safe investment destination, in part thanks to well-paid and long-term employed government workers and an increasing presence of business enterprise.
At the end of FY2020, at the time of the developing health crisis, the territory’s Gross State Product grew 2.4%, recording 30 years of continuous growth.
FY2019 to FY2020 change in GSP Combinedto tS ates & Australia ACT FY2019 FY2020 change in in GSP GSP FY2019 to FY2020 change NT NT ACT ACT WA WA TAS TAS Australia Australia VIC VIC NSW NSW QLD QLD SA SA -2 -2
0 0
Source
06
2 2
ABS,
4 4
% change in GSP % change in GSP ational Accounts, 2019-2020 financial year
The Top 5 Regions That Should Be On Every Investor's Radar
6 6
TopTop 3 Gross Value Sectors in ACT vs AUS 3 Gross ValueAdded Added Sectors in ACT vs AUS C A ACT T
U A S AUS
1.25
Percentage
1.00
0.75
0.50
0.25
0.00
Public Administration and Safety
Source
ABS,
Professional, Scientific and Technical Services
Health Care and Social Assistance
ational Accounts, 2019-2020 financial year
The strength of the ACT economy comes from its predominantly whitecollar workforce, and its growth is driven by the primary sectors of public administration, professional and scientific services, as well as healthcare. These key industries in the ACT had outpaced the growth rate of these sectors nationally throughout FY2020.
With some of the lowest unemployment rates in the country, households in the ACT are relatively affluent and are employed in high-earning professional and managerial roles. As such, the median household income in the ACT is one of the highest in the country. This bodes well for landlords as tenants are more easily able to service increasing rents.
Annual Median Household Income C A T Other StatesIncome Annual Median Household $125,000
$100,000
$75,000
$50,000
$25,000
$0
Darwin
ACT
Sydney
Perth
Brisbane Melbourne Adelaide
Hobart
Source: ABS Census 2016
The Top 5 Regions That Should Be On Every Investor's Radar
07
Change Values ChangeininDwelling Dwelling Values C A TCapital Territory Sydney Australian
MelbourneMelbourne BrisbaneBrisbane Sydney
10.0
% change
5.0
0.0
20 20 -
Fe b 20 20 -M ar 20 20 -A pr 20 20 -M ay 20 20 -J un 20 20 -J ul 20 20 -A ug 20 20 -S ep 20 20 -O ct 20 20 -N ov 20 20 -D ec 20 21 -J an 20 21 -F eb 20 21 -M ar 20 21 -A pr
-5.0
Source: CoreLogic
Much like the overall economy of the territory, the housing market of the ACT is also stable and resilient. Throughout the health crisis of 2020, dwelling values in the ACT did not go into negative territory unlike other major cities.
of 0.9%. A low property vacancy rate is a leading indicator for the right balance of supply vs demand in a particular area. Moreover, Canberra was recently recognised by CoreLogic as the most expensive rental market out of all the capital cities during the first quarter of 2021.
For property investors, the ACT has proven to be a safe haven for profit. This is witnessed through the significantly low vacancy rates as compared to the national average. The current vacancy rate in the ACT is 0.7%, and trending below the 12 month average
With a dwindling supply of housing stock comes increased competition to drive up rents and prices, and in the last quarter of 2020 the average weekly rent for
Vacancy Rates – ACT vs AUS Vacancy Rates – ACT vs AUS
C A T
ACT
U A S
AUS
C A T-avg
U A S-avg
ACT-avg
AUS-avg
3.0
2.0
1.0
Source: SQM Research
08
The Top 5 Regions That Should Be On Every Investor's Radar
Ap r
20
21 -
ar M 21 20
Fe b 21 20
ec
1Ja n 20 2
20 20
-D
ov 0N
20 2
O ct 20 20 -
Se p
20 20 -
0Au g
ul
20 2
-J 20 20
un
20 20
-J
ay 0M
20 2
20
20 -
Ap r
0.0
Average Weekly for Houses – Last 10 Years Average Weekly Rents Rents for Houses – Last 10 Years Canberra Canberra
Sydney Sydney
National National
750
550
2021-Q1
2020-Q3
2020-Q1
2019-Q3
2019-Q1
2018-Q3
2018-Q1
2017-Q3
2017-Q1
2016-Q3
2016-Q1
2015-Q3
2015-Q1
2014-Q3
2014-Q1
2013-Q3
2013-Q1
2012-Q3
350
2012-Q1
450
2011-Q3
Weekly Rent $
650
Source: SQM Research
houses in the ACT exceeded that of Sydney for the first time in over a decade. The combination of low vacancy rates, increasing rents, consistent capital growth, and a resilient economy provides the ideal circumstances for a safe and stable investment property. At Freedom Property Investors, we recently handpicked a suburb in the ACT with low vacancy rates, rapidly increasing rents, and a track record of capital growth, all located within 10 minutes of the major employment hubs of Canberra. We then sourced an investment opportunity from one of the most reputable developers in the area, to deliver our members an asset that boasts excellent rental yields as well as capital growth potential.
The Top 5 Regions That Should Be On Every Investor's Radar
09
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Perth Western Australia Many will recall the market downturn that Perth had experienced following the end of the mining boom. Understandably, many investors at the time picked up their profits and left for greener pastures in other parts of the country. However, since the end of the mining boom in 2015, the housing market in Perth has been in recovery mode and has since continued on a steady trajectory that is exciting investors Australia-wide.
The latest data from the Real Estate Institute of Western Australia shows that buying a house in Perth is now almost $30,000 more expensive than what it was at the beginning of the year, with the average house sale price tipping just over $500,000 in April 2021. This extraordinary growth rate, although largely contributed to by the explosion of buyer demand that has followed the market conditions of 2020, is a testament to the latent strength that Perth is now gathering as an investment destination.
SpotSpot Iron Ore Price Iron Ore Price 200
150
USD/t
100
0
Jan 2005 May 2005 Sep 2005 Jan 2006 May 2006 Sep 2006 Jan 2007 May 2007 Sep 2007 Jan 2008 May 2008 Sep 2008 Jan 2009 May 2009 Sep 2009 Jan 2010 May 2010 Sep 2010 Jan 2011 May 2011 Sep 2011 Jan 2012 May 2012 Sep 2012 Jan 2013 May 2013 Sep 2013 Jan 2014 May 2014 Sep 2014 Jan 2015 May 2015 Sep 2015 Jan 2016 May 2016 Sep 2016 Jan 2017 May 2017 Sep 2017 Jan 2018 May 2018 Sep 2018 Jan 2019 May 2019 Sep 2019 Jan 2020 May 2020 Sep 2020 Jan 2021
50
Source: IMF
10
The Top 5 Regions That Should Be On Every Investor's Radar
Freedom Property Investors approved property.
Perth Weekly Vacancy Rates Perth WeeklyRents Rents and and Vacancy Rate Weekly Rents L( HS) Weekly Rents (LHS)
VacancyRate Rates R ( HS) Vacancy (RHS)
800
6.0
600
2.0
2021-Q1
2020-Q3
2020-Q1
2019-Q3
2019-Q1
2018-Q3
2018-Q1
2017-Q3
2017-Q1
2016-Q3
2016-Q1
2015-Q3
2015-Q1
2014-Q3
2014-Q1
2013-Q3
2013-Q1
2012-Q3
2012-Q1
0
2011-Q3
200
Vacancy rate %
400
2011-Q1
Weekly rents $
4.0
0.0
Source: SQM Research
During the mining boom, house prices and rents were growing, and vacancy rates were at critically low levels. Yet, from mid-2013 until early 2015 weekly rents started to fall, and by July that year vacancy rates began to rise above 3.0% before reaching a peak of 5.4% in 2016. Only a year later the average weekly rents in Perth hit a trough of $415 per week. What is interesting is that the decline in weekly rents during this period also coincided with a slump in the price of iron ore, WA’s biggest export earner, which had bottomed out at around $US39 per tonne in late 2015.
Since then the price of iron ore has been gradually recovering, until mid-2020 when the iron ore price surged to levels similar to those experienced during the mining boom. This had provided a welcome economic boost which was highly beneficial during the 2020 health crisis, as WA (like the ACT) was one of the few States to record economic (GSP) growth during FY2020, with the mining industry being the key driver of that growth. It was also in 2020 that the housing market in Perth recorded annual growth for the first time since the end of the mining boom.
The Top 5 Regions That Should Be On Every Investor's Radar
11
Freedom Property Investors approved property.
Fast-forward to March 2021 and the city’s vacancy rate is at its lowest peak in nearly eight years. And with average rents growing 21% since 2017, Perth is now tipped to outperform many other regions as extreme competition for housing grows and is exacerbated by the lack of listings on the market. Sourcing a reliable and profitable investment property in this region can be difficult for the average investor that isn’t armed with the right insights. Important considerations must be made to the future projections for housing supply as well as population growth and numerous other factors that will impact an investor’s return.
12
Thanks to our team of property researchers, our members are at the forefront of identifying these trends and are able to move quickly and confidently to capitalise on opportunities often unseen to the average investor. Recently we were able to identify a location for our members where, in the last 12 months alone, asking prices increased 9%. Additionally, in this location, the average weekly rent has grown 15% and with a low vacancy rate of 0.6%. We sourced quality, new and spacious houses on large blocks of land, with a full turnkey fixed-price package, providing rental yields of 4.5% for our members.
The Top 5 Regions That Should Be On Every Investor's Radar
Top 3 Gross Value Added Sectors invsWA Top 3 Gross Value Added Sectors in WA AUSvs AUS WA WA
AUS AUS
2.0
Percentage Point
1.5
1.0
0.5
0.0
Mining
Sour e
Health Care and Social Assistance
A S Nat onal A
ount
Information Media and Telecommunications
2019-2020
nan al year
Perth Quarterly and Annual Change in Dwelling Values Perth Quarterly and Annual Change in Dwelling Values Quarterly Quarterly
Annual
Annual
Mar-21
Jan-21
Nov-20
Jul-20
Sep-20
Mar-20
May-20
Jan-20
Nov-19
Jul-19
Sep-19
Mar-19
May-19
Jan-19
Nov-18
Jul-18
Sep-18
Mar-18
May-18
Jan-18
Nov-17
Jul-17
Sep-17
Mar-17
-10.0
May-17
-5.0
Jan-17
-5.0
Nov-16
0.0
Jul-16
0.0
Sep-16
5.0
Mar-16
5.0
% Change
10.0
May-16
% Change
10.0
-10.0
Source: CoreLogic
The Top 5 Regions That Should Be On Every Investor's Radar
13
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Brisbane Queensland Brisbane has long been an attractive destination for Australians seeking a lifestyle upgrade. Compared to other east coast capital cities, Brisbane offers affordable housing along with only slightly lower wages, giving residents more disposable income and a higher quality of life. This sentiment seems to have only increased in recent months following the increase in remote workers, in part thanks to the COVID-19 health crisis and pent-up buyer demand. Like a handful of other locations across Australia, Brisbane had showed remarkable resilience
14
during 2020, with changes in dwelling values remaining in positive territory throughout the year before recording a notable upswing from the end of 2020 and onward. Cities like Brisbane are offering investors much tighter rental markets as well as greater affordability. But investors should act quickly. As at March 2021, the median home value in Greater Brisbane was $607,969 according to CoreLogic data, which is the highest it has ever been and over $14,000 more than only one month prior.
The Top 5 Regions That Should Be On Every Investor's Radar
As at March 2021, the median home value in Greater Brisbane was $607,969 according to CoreLogic data, which is the highest it has ever been and over $14,000 more than only one month prior December 2019 Quarter
December 2020 Quarter
Arrivals
Departures
Net
Arrivals
Departures
Net
NSW
25,753
32,536
-6,783
25,356
30,624
-5,268
VIC
23,905
21,240
2,665
18,462
24,998
-6,536
QLD
29,830
22,970
6,860
30,406
20,643
9,763
SA
6,808
7,863
-1,055
7,083
6,949
134
WA
8,583
9,596
-1,013
8,947
7,742
1,205
TAS
3,809
3,419
390
3,841
3,542
299
NT
3,874
4,987
-1,113
4,104
4,400
-296
ACT
6,063
6,014
49
6,552
5,853
699
108,625
108,625
-
104,751
104,751
-
Total
Source: ABS, Interstate Migration
Another key factor to Brisbane’s success is interstate migration. During the on-going COVID-19 crisis we saw this trend increase towards a higher portion of net interstate migration to Brisbane. Given the significantly reduced levels of international migration throughout 2020 due to COVID-19, Queensland was the only state to see a significant level of population inflow – creating incremental demand for housing. Increasing demand, combined with a shortage of housing, creates ideal conditions for the property investor. Infact, the major banks agree that Brisbane’s property market is set to enjoy a period of sustained growth. CBA even went as far as predicting an increase of 16.6% to December 2022. With more buyers entering the market, the vacancy rate in Brisbane has been steadily decreasing since the end of 2016, dropping below the 3% mark – a level which supply and demand are in balance. From mid-2020, vacancy rates saw another significant drop driven by the increased levels of interstage migration. Weekly rents also saw an upswing during this period.
Freedom Property Investors approved property.
The Top 5 Regions That Should Be On Every Investor's Radar
15
Brisbane Weekly andVacancy Vacancy Rates Brisbane WeeklyRents Rents and Rate 500
4
475
3
450
2
425
1
400
0
Vacancy Rate %
Vacancy Rates (RHS) Vacancy Rate (RHS)
20
16 20 -Q 16 1 20 -Q 16 2 20 -Q 16 3 20 -Q 17 4 20 -Q 17 1 20 -Q 17 2 20 -Q 17 3 20 -Q 18 4 20 -Q 18 1 20 -Q 18 2 20 -Q 18 3 20 -Q 19 4 20 -Q 19 1 20 -Q 19 2 20 -Q 19 3 20 -Q 20 4 20 -Q 20 1 20 -Q 20 2 20 -Q 20 3 20 -Q 21 4 -Q 1
Weekly Rent $
Weekly Rents (LHS) Weekly Rents (LHS)
Source: SQM Research
At Freedom Property Investors, we use the latest data insights to inform our decision making. Despite the media stimulating fear and confusion during the health crisis of 2020, our research pointed to stable conditions in Brisbane, positioning itself well for future growth. Because of this, many of our members were able to take advantage of the market uncertainty at the time and were able to secure favourable deals across a number of highly sought-after locations across Brisbane. An example of this is in a blue-chip coastal suburb of Brisbane, around 25km from the CBD. This is an area that we had identified in meeting our strict 13-point property selection criteria and, as a result, our members were able to select from an exclusive
16
handful of luxury terrace homes that are an ideal dwelling for affluent downsizers. Thanks to our exclusively negotiated benefits, our members who purchased here in 2020 have already achieved significant capital gains in only a short period of time. Fast-forward to the present, and this suburb’s median house price has grown 8% year-onyear, equating to $60,000, by January 2021. Additionally, this suburb’s vacancy rate had fallen from 2.2% to 0.2% over the same 12 month period. And with banks predicting 15%-20% growth over 2021-2022, there are still plenty of opportunities to find quality investment opportunities in Brisbane.
The Top 5 Regions That Should Be On Every Investor's Radar
$600,000
2017-Jan 2017-Feb 2017-Mar 2017-Apr 2017-May 2017-Jun 2017-Jul 2017-Aug 2017-Sep 2017-Oct 2017-Nov 2017-Dec 2018-Jan 2018-Feb 2018-Mar 2018-Apr 2018-May 2018-Jun 2018-Jul 2018-Aug 2018-Sep 2018-Oct 2018-Nov 2018-Dec 2019-Jan 2019-Feb 2019-Mar 2019-Apr 2019-May 2019-Jun 2019-Jul 2019-Aug 2019-Sep 2019-Oct 2019-Nov 2019-Dec 2020-Jan 2020-Feb 2020-Mar 2020-Apr 2020-May 2020-Jun 2020-Jul 2020-Aug 2020-Sep 2020-Oct 2020-Nov 2020-Dec 2021-Jan
Median Price
0 2021-Jan
2020-Nov
2020-Sep
2020-Jul
2020-May
2020-Mar
2020-Jan
2019-Nov
2019-Sep
2019-Jul
2019-May
2019-Mar
2019-Jan
2018-Nov
2018-Sep
2018-Jul
2018-May
2018-Mar
2018-Jan
2017-Nov
2017-Sep
2017-Jul
2017-May
2017-Mar
2017-Jan
Vacancy Rate %
Suburb Rate SuburbVacancy Vacancy Rate
5
4
3
2
1
Source: CoreLogic
Suburb HousePrice Price Suburb Median Median House
$800,000
$750,000
$700,000
$650,000
Source: CoreLogic
The Top 5 Regions That Should Be On Every Investor's Radar
17
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Gold Coast Queensland
With a population of 640,000 residents, the Gold Coast is Australia’s sixth largest city and the most populous non-capital city. Known for its famous postcard beaches and yearly influx of visitors, the Gold Coast is also home to a thriving economic sector in addition to the long list of tourist attractions.
The Gold Coast real estate market went through a slump following the 2008 Global Financial Crisis, as the economy was largely reliant on tourism. However, since that period, the economy in Gold Coast city has become more diversified. The Healthcare and education industries (two of the major growth sectors in Australia) have grown since 2008, and are now major sources of employment.
Gold Coast Change in Sources of Employment – 2020 vs 2008 Gold Coast Change in Sources of Employment – 2020 vs 2008
Health Care and Social Assistance Education and Training Professional, Scientific and Technical Services Accommodation and Food Services Transport, Postal and Warehousing Public Administration and Safety Administrative and Support Services Electricity, Gas, Water and Waste Services Agriculture, Forestry and Fishing Mining Financial and Insurance Services Information Media and Telecommunications Arts and Recreation Services Other Services Wholesale Trade Rental, Hiring and Real Estate Services Manufacturing Retail Trade Construction -4.0
-2.0
0.0
2.0
4.0
% Change in Employment Sources Between 2008 and 2020
Source: National Institute of Economic and Industry Research (NIEIR, 2021)
18
The Top 5 Regions That Should Be On Every Investor's Radar
6.0
Between 2012 and 2018, the real estate market experienced one of the best periods of sustained growth in its history. Then in 2020, despite a lack of tourism brought about by the unfolding global health crisis, Gold Coast house prices increased again – further demonstrating the strength and resilience of the local property market.
Coast. Consequently, the weekly rent for a house now rivals that of renting in Sydney. According to Domain, house rental figures are rising at the steepest annual pace in approximately 15 years. This sharp uptick follows data released by the ABS in February 2021 which noted that many of Australia’s capital cities had experienced an exodus of cashed-up buyers moving to lifestyle regions around the country.
A spike of interstate migrants and sea-change movers has resulted in heightened demand across the Gold
Gold Coast House Price Gold CoastMedian Median House Price $900,000
$700,000 $600,000 $500,000 $400,000
20 20
19 20
18 20
17 20
16 20
15 20
14 20
13 20
12 20
11 20
10 20
09 20
08 20
07 20
06
$300,000
20
Median House Price
$800,000
Source: Domain PriceFinder
The Top 5 Regions That Should Be On Every Investor's Radar
19
With rents on the Gold Coast now comparable to the expensive parts of Sydney, many investors are taking advantage to grow their portfolios and solidify their returns. Freedom Property Investors has closely monitored the Gold Coast market, even prior to what we are now seeing, and just recently were able to negotiate very favourable opportunities for our valued investor community.
One particular suburb pinpointed by our dedicated research team, led by Actuary and Data Scientist Lianna Pan, has experienced such swift growth that by the end of 2020 the median house price grew 7.7% (equivalent to $50,000). Add to this the significant drop in suburb vacancy rates from 3.4% to 1.2% over 2020, which dropped even further to 0.9% in February 2021, and you can see how investors here are achieving excellent returns.
Suburb Median House Price Suburb Median House Price $725,000
2021-Jan
2020-Nov
2020-Mar 2020-May
2020-Jul
2020-Jan 2020-Mar
2020-Sep
2019-Nov 2020-Jan
2020-May
2019-Sep 2019-Nov
2019-Jul
2019-May
2019-Mar
2019-Jan
2018-Nov
2018-Sep
2018-Jul
2018-Mar
2018-May
2018-Jan
2017-Nov
2017-Jul
2017-Sep
2017-Jan
$575,000
2017-May
$625,000
2017-Mar
Median Price
$675,000
Source: CoreLogic
Suburb Rates Suburb Vacancy Vacancy Rates
4
Source: SQM Research
20
The Top 5 Regions That Should Be On Every Investor's Radar
2021-Jan
2020-Nov
2020-Sep
2020-Jul
2019-Jul
2019-Sep
2019-May
2019-Mar
2019-Jan
2018-Nov
2018-Sep
2018-Jul
2018-May
2018-Mar
2018-Jan
2017-Nov
2017-Sep
2017-Jul
2017-Jan
0
2017-May
2
2017-Mar
Vacancy Rate %
6
Freedom Property Investors approved property.
Realising that there is an under supply of quality housing that caters to professionals as well as new and established families, we approached a renowned developer in this suburb who was in the process of building a premium solution to meet buyer demand.
Our successful negotiations with this developer led to several of our members securing brand-new and spacious designer terraces just moments to sparkling beaches and transport access to business centres.
The Top 5 Regions That Should Be On Every Investor's Radar
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Geelong Victoria By the turn of the 20th century, Geelong had established itself as an epicentre of Australian trade and commerce, exporting a variety of goods and commodities to the world from its port. Nowadays, the GeelongPort handles more than 10 million tonnes of cargo annually, with more than 600 vessel visits each year. Unlike most other regional cities, Geelong is relatively close to a major capital city, being only a 1.5hr drive to Melbourne CBD. A major infrastructure project, the
Geelong Fast Rail, looks to shorten this travel time further which will allow even more city workers to take residence in this region. The completion of this major infrastructure project will further boost the transport attributes of Geelong City and subsequently enhance the value of the property. The city currently has a population of approximately 250,000 which is expected to grow to more than 350,000 by 2041 – making Geelong one of the fastest growing regions in Australia.
Artist impression – Geelong Fast Rail
22
The Top 5 Regions That Should Be On Every Investor's Radar
Freedom Property Investors approved property.
Geelong City House Prices Geelong CityMedian Median House Prices $600,000
Median House Price
$500,000
$400,000
$300,000
$200,000
20 20
19 20
18 20
17 20
16 20
15 20
14 20
13 20
12 20
11 20
10 20
09 20
08 20
07 20
20
06
$100,000
Source: Domain PriceFinder
This region has also cemented its standing with emerging health, education sectors as well as an advanced manufacturing hub. As at March 2021, the unemployment rate for Geelong, as reported by ABS, was sitting at 4.3% which was well below the national rate of 6.7% at that time. Geelong already has a strong track record of median price growth over the long term which has been consistently increasing in recent years. In the last five years alone, median house prices have increased over 46%. Additionally, during the COVID-19 health crisis of 2020 and combined with restricted selling conditions due to the Victorian lockdowns, median prices still grew 8.9% (equivalent to $48,000) by the end of the year.
This growth in house values coincides with a growing local economy, particularly from 2015 where the gross regional product (GRP) has been expanding at around 3.5% per year, and even itself recording growth during 2020. Compared to Greater Melbourne, house prices in Geelong are still relatively affordable. However, as transport links to Melbourne improve over the coming years, values in Geelong are expected to increase. Savvy investors can capitalise by selecting the right suburb which meets the right criteria. In doing so, this will greatly impact an investor’s overall profit margin and future capital gains.
The Top 5 Regions That Should Be On Every Investor's Radar
23
Geelong City Product (GRP) Geelong CityGross Gross Regional Regional Product (GRP) 15000
GRP in $millions
12500
10000
7500
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: National Institute of Economic and Industry Research (NIEIR, 2021)
Suburb Median House Prices Suburb Median House Prices $575,000
Source: CoreLogic
24
The Top 5 Regions That Should Be On Every Investor's Radar
2021-Jan
2020-Nov
2020-Jul
2020-Sep
2020-May
2020-Mar
2020-Jan
2019-Nov
2019-Jul
2019-Sep
2019-May
2019-Mar
2019-Jan
2018-Nov
2018-Jul
2018-Sep
2018-May
2018-Mar
2018-Jan
2017-Nov
2017-Jul
2017-Sep
2017-Jan
$425,000
2017-Mar
$475,000
2017-May
Median House Price
$525,000
At Freedom Property Investors, we utilise a strict 13-point selection process in order to determine where the best places are to invest for both return and capital growth. In 2020, our research team uncovered one suburb in particular in the Geelong region that met this criteria and demonstrated signs of a hotly contested market. Through our investor network and our relationships with vendors, we were able to secure an exclusive allocation of house and land packages in this suburb that aim to meet the growing demand that has been building in this region for some time. These dwellings have been designed and specified to prized quality
standards and with the latest premium finishes to ensure future resale value remains high. These residences are already providing healthy rental yields to our members who have invested here, and median prices in this suburb even recently enjoyed a 5.7% rate of growth over 2020 (equivalent to $30,000). Geelong’s lifestyle is hard to beat. Quality living combined with a strong and growing local economy means that residents will be flocking to Victoria’s largest provincial city for many years to come.
These residences are already providing healthy rental yields to our members who have invested here, and median prices in this suburb even recently enjoyed a 5.7% rate of growth over 2020 (equivalent to $30,000). The Top 5 Regions That Should Be On Every Investor's Radar
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What our members are saying... Freedom Property Investors simplify investing while helping you every step of the way toward achieving your freedom through property. Our dedicated research team utilise a data-driven approach to selecting the best locations across the country, which enables our members to navigate the property market and find excellent investment opportunities.
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