Buyers agents and market analysts Propertyology released a list of 39 cities slated for solid growth over the next three years, nine of which are in Queensland.
Managing director Simon Pressley said buyers often had tunnel vision trained on their home city and discounted other options.
“Some homeowners, particularly in the big cities, think nothing of spending $400,000 on a renovation or $800,000 to $1 million to buy a single property,” Mr Pressley said.
“However, for the same amount, you can buy two or more affordable properties in locations with considerable upside growth potential and rental returns that generate positive or near-positive cash flow.”
All listed cities had a median house price of $400,000 and included Ipswich and Logan.
However, Mr Pressley said buyers should still look further afield. His pick of the Queensland cities were Cairns and Mackay.
Cairns has seen comparative price growth to Brisbane in the past few years but Mr Pressley said most would be surprised to hear Mackay was now a safe bet for investment.
“It suffered the most over the past five years,” he said. “For the 2017 calendar year, Mackay’s volume of jobs increased by 8.4 per cent. It’s actually very good.
“Nationally, we saw an increase in jobs of 5.7 per cent.”
Mackay’s change in fortune was more of a gradual recovery from the resource downturn, which was in turn boosted by efforts to rebuild after last year’s Cyclone Debbie.
“The island is going to be new again and we’re going to see these developments completed after the cyclone,” he said. “There’s a new product in a complex that is 20 years old.”
The extra work provided a boost to other industries; that wouldn’t disappear once all the cyclone damage was repaired, Mr Singleton said.
“We’re seeing about 500 tradespeople coming over a day and that’s just our island,” he said. “You can imagine all the excess money being spent in restaurants and pubs.”
Agents in Mackay had felt the pick-up in the local economy too.
“Businesses are starting up again, they’re hiring again. There’s actually a shortage of workers,” Gardian agent David Fisher said. “I think people will start coming to Mackay and start taking the opportunity of work.”
He said those looking for work were also looking for a place to live.
“Buyers are back with confidence. Prices haven’t gone through the roof but people are confident,” Mr Fisher said. “It’s a good opportunity for buyers and sellers. Buyers can be confident they’re buying into a growing market.”
The nine cities to buy in with prices under $400,000:
- Bundaberg – $296,000
- Cairns – $400,000
- Logan – $400,000
- Mackay – $330,000
- Rockhampton – $270,000
- Toowoomba – $375,000
- Townsville – $340,000
- Hervey Bay – $320,000
- Ipswich – $341,000