Melbourne’s inner-ring suburbs have been tipped to lead the charge when the city’s property market begins rising again.
But Geelong has been a surprise inclusion in WBP Group expert and The Block regular Greville Pabst’s tips on 10 suburbs where investors could buy now to cash in later.
“I’m expecting the next upswing will commence in Melbourne’s inner ring,” Mr Pabst said.
“It will occur quickly, before most people realise it’s happening.”
Investors should start thinking about Melbourne suburbs where infrastructure upgrades — particularly with links to transport — could put them at the top of the next boom, he said.
“Cheltenham recently opened a new train station at Westfield Southland and North Melbourne has a new Arden precinct and train station,” Mr Pabst said.
“(And) Cremorne and Footscray are both inner city suburbs undergoing intense redevelopment to improve their transport linkages.”
Geelong was the only regional town to make his list.
With infrastructure projects including a high-speed rail connection to Melbourne, it’s one he believes investors should keep an eye on.
Otherwise, investors would also do well to look for undervalued suburbs like St Kilda and Beaumaris, or more broadly across the city’s inner and middle northern suburbs.
Melbourne’s west and north are also tipped for future home price rises, with much of the city’s population growth to be centred on their suburbs.
And with regulatory changes late last year opening the door on investment loans again, a modest rise in investor activity could be on the cards, according to realestate.com.au chief economist Nerida Conisbee.
“I think the Australian Prudential Regulatory Authority (APRA) change will have an effect on investors, it won’t lead to a big jump in activity, but it will moderate the market a little,” Ms Conisbee said.
A further telling factor would be resolved later in the year when a Federal Election resolves the fate of changes to capital gains tax and negative gearing mooted by the Australian Labor Party.
She seconded suggestions of regional towns — like Geelong — as investment options.
Within Melbourne, realestate.com.au data shows several suburbs where demand remains high, potentially signalling scope for future growth.
“In terms of Melbourne itself, the areas we are seeing high demand are bayside — Middle Park; and it does seem to be more inner areas that have the attention at the moment,” Ms Conisbee said.
TOP INVESTMENT SPOTS FOR 2019
1. Cheltenham — $1.05 million median
2. Footscray — $870,000 median
3. Seddon — $990,000 median
4. Cremorne — $1.2 million median
5. St Kilda — $1.315 million median
6. Beaumaris — $1.55 million median
7. Geelong — $700,000 median
8. Thornbury — $1.81 million median
9. North Melbourne — $1,158,500 median
10. Kingsville — $960,000
*Source: Greville Pabst — WBP Property, CoreLogic (median house prices)