IF you dream of buying into the next property boom spot but don’t have the cash, things are looking up.
Nine regional areas across Australia – some where the median house price is less than $200,000 – present the best opportunities for double-digit property growth, according to research by one of nation’s leading property commentators.
So while most of didn’t foresee the mining town boom in time, there are new hotspots where similar scenarios, such 30 per cent-plus annual growth, may soon unfold.
Capital city suburbs didn’t feature strongly on real estate expert Terry Ryder’s annual hotspotting report, with country towns rather than urban enclaves topping the list of property powerhouses.
Mr Ryder says regional areas have very good prospects for transformation on the back of major growth drivers such as mining exploration and port activity.
So has Mr Ryder identified the next Moranbah or another town that will deliver the exponential growth of Port Hedland?
“It’s difficult to identify those opportunities because, usually, the growth drivers are
not yet apparent,” Mr Ryder says.
“Ten years ago, houses in Moranbah were cheap because the town’s future as a mining boom town was not yet apparent. Few people saw the growth coming.
“But there are places around Australia where Moranbah growth rates may happen in the future, if something special happens.”
Blackall in Queensland doesn’t get a lot of great property press and not surprisingly given that it’s a outback town almost 1000km west of Brisbane.
But Mr Ryder has identified it as a possible boom spot.
The resources sector is set to provide another major layer to Blackall’s economy and potentially transform the town itself, he says.
“Blackall sits amid the Eromanga Basin, a rich untapped source of coal that is now being extensively explored. It is potentially as big as the emerging Galilee Basin mining province in central Queensland and, if developed, will bring considerable riches to Blackall,” Mr Ryder says.
The median house price in Blackall is $150,000 putting it within easier reach than any capital city suburb, so don’t say we didn’t tell you if it does actually take off.
And bear in mind that Port Hedland’s median house price in 2002 was $193,000. Today it’s $1,050,000 because of the town’s relationship with mining. If only we could have known that in 2002.
Gloucester in New South Wales is another town being eyed by mining companies so worth considering as a property prospect, while FIFO workers may contribute to growth in Queensland’s Whitsunday region, according to the report.
Mining aside, a number of other factors contribute towards developing growth areas and should be considered, such as new infrastructure, improved roads, access to public transport, local amenities and the need for a community to live in a particular area, making it popular with renters.
According to Mr Ryder, these are the ten “long shot” locations we all should take a look at:
Blackall is the key regional town for the merino sheep country of central western Queensland. However, its role and its size may be transformed by exploration in the coal-rich Eromanga Basin in which it sits.