Australia’s property market in 2024 is presenting investors with a new set of opportunities: the safest suburbs for long-term investment. While these areas may not be the hottest markets, they offer the most reliable performance, making them a safe bet for investors seeking steady capital growth over time. Queensland stands out, with 29 of the 50 safest suburbs located in the state, according to property analysis firm Hotspotting’s Summer 2024 Price Predictor Index.
Queensland Dominates the List
Hotspotting’s latest report identifies Queensland as the standout state, housing nearly 60% of the nation’s safest suburbs for investors. This includes 24 suburbs with consistent house markets and 5 with consistent unit markets. The dominance of Queensland highlights the state’s strong property growth and market stability, driven by internal migration and increasing demand for affordable, lifestyle-oriented living outside major cities.
One of the standout performers is Buderim on the Sunshine Coast, which has seen remarkably consistent sales volumes over the past three years. Buderim’s five-year capital growth average sits at an impressive 13.3% per year, with the median house price rising by 14% to $1,250,000 in the last 12 months.
Regional Surge Across Australia
A significant trend in this year’s list is the dominance of regional areas across the nation. Hotspotting’s General Manager, Tim Graham, explained that these markets may not have the excitement of “next big thing” areas, but they offer a safer, more reliable option for investors. Regional cities in Queensland, for instance, are benefitting from a surge in internal migration, as people move from large cities to smaller, more affordable locations with improved lifestyles.
In New South Wales (NSW), 10 suburbs made the list, while Victoria contributed 6 suburbs, and Western Australia (WA) saw 4 suburbs listed. However, Mr. Terry Ryder, Hotspotting’s Managing Director, noted a shift in WA, with the state’s previously booming market now cooling. He explained, “This represents a turning point in the national property market, with the WA boom past its peak and attention switching increasingly to Queensland.”
Key Trends in the Market
Mr. Ryder also highlighted that regional cities are increasingly becoming the focus for property investors. These areas have shown strong and consistent buyer demand, which is propelling their growth. For example, Queensland’s regional cities are thriving, with many locations benefiting from both lifestyle appeal and affordability.
The Adelaide market, though not part of the original list, also offers steady performance. Mr. Ryder pointed out five suburbs in Adelaide—Aberfoyle Park, Aldinga Beach, Craigmore, Prospect, and Salisbury North—which demonstrate how consistent demand in suburban markets can yield exceptional growth.
A Look at the Safe Investor Suburbs for 2024
Queensland: Buderim, Maroochydore, Rockhampton, Cairns, and Toowoomba lead the pack, reflecting the state’s continued popularity for migration and lifestyle appeal.
NSW: Suburbs like Orange, Bathurst, and Newcastle are seeing growth, driven by a combination of regional affordability and infrastructure development.
Victoria: Regional areas such as Ballarat and Bendigo are benefiting from increasing demand, alongside Melbourne’s consistent markets.
WA: Suburbs like Mandurah and Albany remain safe choices, despite the slowdown in the state’s market.
The Bigger Picture
For those looking for long-term, reliable capital growth, safe suburbs offer a welcome alternative to volatile, high-risk markets. While these areas may not experience the rapid price surges seen in the most speculative markets, they consistently outperform over time, providing a stable return for investors.
Mr. Ryder emphasized that these safe suburbs are often more affordable and accessible to a wider range of buyers, making them attractive options for both first-time investors and those looking to expand their portfolios. As the property market continues to evolve, regional areas and those with consistent buyer demand will likely continue to be safe havens for smart investors.
As Queensland continues to lead the charge, the data from Hotspotting suggests that investing in stable, consistent markets remains a reliable strategy for securing long-term growth.
The list of Australia’s 50 safest suburbs is a valuable resource for investors seeking reliable, steady returns. By focusing on areas with strong long-term growth potential, investors can position themselves for success even when market conditions are less favorable.
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