Re­gional mar­kets

Man­ag­ing risk is an im­por­tant strat­egy, whether buy­ing prop­erty for life­style rea­sons or an in­vest­ment

Weekend Gold Coast Bulletin - Property - - MARKET WRAP -

So much me­dia at­ten­tion, re­search and fo­cus is placed on our hous­ing mar­kets in re­la­tion to the big cities and their usu­ally sprawl­ing sub­urbs.

This makes a cer­tain amount of sense as most Aussies seem to re­side within the big cities, their out­ly­ing ar­eas and their im­me­di­ate coastal lo­ca­tions.

How­ever when you re­view the statis­tics pub­lished in 2015 by the ABS, it ac­tu­ally brings the im­por­tance of re­gional hous­ing mar­kets to the fore and re­veals a few lit­tle sur­prises.

Yes in most states there are more res­i­dents in their cap­i­tal than else­where, but not all and that vari­a­tion gap again is not as pre­dic­tive as you may think. Queens­land bucks the trend with 2.3 mil­lion res­i­dents in Greater Bris­bane while the rest of the state has a slightly higher count at 2.4 mil­lion.

Very roughly, across Aus­tralia there are in ex­cess of 7.5 mil­lion res­i­dents of re­gional mar­kets. Clearly this is a siz­able por­tion of our pop­u­la­tion all of whom have a de­sire to live, own and rent in re­gional real es­tate.

So what is re­gional? For me there are var­i­ous grades of this mar­ket cat­e­gory and along with those grades come a range of risk fac­tors for you as a buyer to con­sider. Re­cent CoreLogic data found gains in cer­tain re­gional mar­kets where big-city prices had cre­ated a wave of prop­erty de­mand and price rises as buy­ers moved fur­ther afield seek­ing value, af­ford­abil­ity, and the next growth area – the Gold Coast is a pos­i­tive ex­am­ple. Buy­ers in a non-city lo­ca­tion need to be aware that the risks of pur­chas­ing prop­erty can be vastly dif­fer­ent and that the more re­mote and fur­ther away you go the higher the risk can be.

Life­style chang­ers who buy re­gional prop­erty should be sure they want to make the life change then cash in or buy and en­joy out­stand­ing af­ford­abil­ity. For in­vestors it is with­out ar­gu­ment, in my opin­ion, the higher risk op­tion – but that risk can be man­aged with de­tailed re­search and the right ap­proach and strat­egy.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.