These three locations could offer smart investors both short-term yields and long-term growth.
DPN, an investment provider and finance broker, has revealed their top three picks for investors seeking a sound, growth-oriented asset in the new year.
With rumours that the Reserve Bank of Australia will continue to hike interest rates and an ongoing shortage of homes, DPN stressed that investors must focus on properties that offer both short-term and long-term yields.
Their latest report found that “there are a number of areas across the country currently offering strong investment opportunities, despite the cash rate being at its highest level in 12 years”.
Here are DPN’s top three locations to invest in 2024.
1. Wanneroo, Western Australia
For interstate investors looking for a bargain, the City of Wanneroo in Perth could be an excellent option.
Perth’s median house price is currently $584,000 versus $1.25 million in Sydney. Alex Reithmeier, DPN’s research executive, revealed that “Perth’s affordability from the perspective of an interstate investor is a standout, with its median price now below 50 per cent of Sydney”.
“You’d have to go back to 2007 to see those prices in the harbour city,” Mr Reithmeier observed.
Wanneroo, in particular, has seen 11.7 per cent capital growth over the last three years and 4.5 per cent annual rental yield over the last five years, fuelled in part by new infrastructure.
“A number of major transport infrastructure projects for the region have recently been completed including the Northwest Freeway Extension and the Yanchep Rail Extension which has improved accessibility and will provide further future growth for the region,” said Mr Reithmeier.
He also noted that suburbs like Eglinton in the Wanneroo LGA offer a combination of coastal living and urban convenience that is appealing to families.
2. Maitland, NSW
One of the gems of NSW is Maitland, a regional hub located within reach of both Newcastle and the Upper Hunter’s coal mines.
DPM reported that the median home price for the City of Maitland is now $694,000, with the area seeing 8.5 per cent capital growth since 2020 and 3.8 per cent annual rental yields over the past five years.
“Substantial infrastructure investments across the region, along with a robust and growing economy, are fuelling strong population growth in Maitland,” stated Mr Reithmeier.
These infrastructure investments include the $835 million Maitland Hospital and John Hunter Health and Innovation Precinct, $700 million Singleton Bypass, $450 million Newcastle Inner City Bypass and $240 million Newcastle Airport expansion.
“Benefitting from its proximity to Sydney, young families and first home buyers are moving up to make house ownership a reality,” said Mr Reithmeier.
3. Logan, Queensland
According to Mr Reithmeier, Brisbane has two major elements in its favour.
“On the face of it, Brisbane is the story of the Olympic infrastructure boom but an undercurrent of persistent interstate migration from the southern states in search of improved affordability is fuelling demands for regions such as Logan,” said the research executive.
Over the last three years, Logan witnessed a massive 15 per cent capital growth per annum, and 3.1 per cent rental yields per annum in the last five years.
“The City of Logan has a good affordability price point compared to other Brisbane metro areas, which makes property investing economical,” Mr Reithmeier said.
He also noted that its convenient location between Brisbane, the Gold Coast and Ipswich make it well-positioned for both employment and lifestyle.