Hotspotting

The growth being displayed by markets in Melbourne and Victoria is extraordinary, given the circumstances that have impacted these places over the past 12 months.
Melbourne, which has been affected by lockdowns more than any other part of Australia, was the major market which suffered the most in 2020.
But it has come roaring back to life, with a recovery which has stunned many observers.
According to CoreLogic figures, Melbourne house prices rose 2.6% in March and 5.6% in the March Quarter, while apartment prices increased 1.7% in March and 3% in the March Quarter.
This is happening on the back of significant uplift in sales activity, at a time when the number of listings of properties for sale remains low.
Inevitably, prices are rising.

Meanwhile, Regional Victoria continues to be one of the nation’s strongest markets.
Regional Victoria has been a national leader of the most dominating trend in Australian real estate, the one I call the Exodus to Affordable Lifestyle.
This has been driving regional markets in the state for the past three years or so – and it continues to do so.
Overall, house prices in Regional Victoria have grown 10% in the past 12 months, while apartment prices are up 13.5%, and there are many locations in Regional Victoria where prices have increased 15% or 20% or more in the past year.
This week we have published our Victorian Bundle – which comprises our Top 5 Melbourne Hotspots report and our Top 5 Regional Victoria Hotspots report.
We provide the two reports together at a discounted price so that you can access our ideas on the places to invest in one of the nation’s strongest capital city economies and in one of the most vibrant regional jurisdictions – indeed the one that has been the front runner of the most dominant trend in the country, the Exodus to Affordable Lifestyle.

https://www.hotspotting.com.au/product/vic-bundle/

One of the best ways to analyse and understand the nationwide real estate boom that’s currently sweeping Australia is to read Hotspotting’s bi-monthly newsletter, The Ryder Report.

This is a 25-page report which covers events and topics relevant to all corners of Australia.

And in this new April 2021 edition I explore some of the core issues, including the likely impact if the Reserve Bank changes its mind and decides to lift the official interest rate.

There’s a lot of media speculation about whether or not the RBA will lift the cash rate – despite its repeated statements that it won’t change the rate until 2024 at the earliest – and what the likely impact would be if it did so.

One of the reasons why economists and journalists are so fixated on the possible impact of an interest rate rise is because they think that low interest rates are the cause of the boom.

But they’re wrong. It’s not. There are multiple strong reasons why we have this strong nationwide upcycle.

I have 15 dot points on my list of growth drivers and in this edition of The Ryder Report I list those reasons.

Also in this edition of The Ryder Report, we publish excerpts of a report written by the man I regard as Australia’s best real estate research analyst, Simon Pressley of Propertyology.

He says that Australia has the best conditions for capital growth in 15-20 years and that it’s likely that property values will double in this five-year growth phase.

And there’s a whole lot more in this edition of The Ryder Report.

We analyse prices, we refute recent examples of media misinformation, we highlight specific growth markets, we provide special tips for investors, and we provide a state-by-state review of all the major events and issues in residential property across the nation.

So make sure you get your copy of the April edition of The Ryder Report, to ensure that you are fully-informed about the great Australian real estate boom.

When we consider property investing, location is usually at the forefront of people's minds. And for good reason. But is this the right starting point?

In this webinar, Hotspotting's Managing Director, Terry Ryder, and AllianceCorp's Managing Director, Jason Paetow delve into the other investment fundamentals to consider.

When building a property portfolio, our mindset needs to shift to property wealth planning - taking a broader approach - rather than honing straight in on locations. Through this process, we are able to determine which locations and what types of properties will ensure the best financial outcomes for clients.

The two leading property investment and location experts discussed the importance of the Portfolio Grade strategy and under what circumstances some locations are better than others. They also discussed a number of top locations for your portfolio, in the current rising market, taking into consideration a tailored strategy for each client.

Federal and state political leaders intend to generate an infrastructure-led economic recovery in Australia.

This will turbocharge the residential property boom which is already well under way across the nation.

Infrastructure spending is always a key driver of growth in residential property markets and government plans to fast-track shovel-ready projects will enhance the established trend of rising markets in many parts of Australia.

The research conducted daily by the Hotspotting team places considerable emphasis on announcements of major new infrastructure developments.

The best places to invest have impact from infrastructure in two key ways:

1 Existing infrastructure (public transport, schools, medical services, retail outlets, etc) and

2 Spending on new infrastructure.

New infrastructure is particularly influential on generating growth in residential property markets.

Our belief is that no other factor impacts property markets as strongly as major new infrastructure spending. That impact occurs both during construction and after the facility is completed.

Infrastructure such as new motorways, rail links, hospitals and universities improve the amenity and desirability of the locations directly impacted.

These projects generate major economic activity and employment – and from that flows demand for real estate.

From 2013 to 2017 both Sydney and Melbourne had significant real estate booms, but this was not replicated in other parts of Australia.

During that period, the markets in Perth and Darwin were in reverse, and those in Brisbane, Adelaide and Canberra were largely stagnating.

The fundamental difference - between the markets that were booming and those that were not - was the infrastructure spend.

Both Sydney and Melbourne were investing tens of billions of dollars on new infrastructure. As a consequence, the economies of the two biggest cities were strong, as a time when the other cities were weak or in decline.

We have seen major infrastructure spending transform local economies and their property markets in many significant regional cities across Australia. Projects totalling more than $20 billion have transformed the Sunshine Coast from a tourist town to an international city and it currently has one of the strongest property markets anywhere in Australia.

Newcastle, Geelong and Wollongong are all regional cities which have transitioned by older-style economies based on manufacturing to prosperous modern economies through spending on new infrastructure and the generation of new employment sectors. Growth property markets have emerged from the transition in these places.

For all these reasons, a new report created by Hotspotting is more important than most.

This report is titled: “Australia’s Infrastructure-led Property Boom: National Top 10 Hotspots”.

We’ve just published the new 2021 edition. It’s a report that encapsulates the essence of the national property boom.

So get yourself a copy today.

Regional Queensland right now is one of the nation’s leading boom markets.

It has more locations with rising sales activity than any other market jurisdiction in the nation, including all the capital cities.

There are growth markets up and down the Queensland coast, from the Gold Coast in the south to Cairns in the north, and heading inland to important regional cities like Toowoomba.

Perhaps the standout feature is the uptick in activity and prices in the past three or four months.

Three months ago, when I did our quarterly survey of sales activity, I found 72 locations in Regional Queensland with upwardly mobile markets.

With our new survey just completed, I found 157 growth markets.

In other words, the already-high number of rising markets has doubled in three months.

This is a stunning outcome – and it means that, in a nation that’s having a nationwide property boom, Regional Queensland is the leader of this dramatic event.

At the same time, eight out of ten locations have recorded growth in their median prices in the past 12 months – many of them with double-digit price growth.

There are multiple reasons why this is happening – but a key catalyst is the reality that Queensland is a natural beneficiary of the Exodus to Affordable Lifestyle trend which is sweeping the nation.

All this has made it a difficult task to select the locations to include in our new 2021 edition of Top 5 Regional Queensland Hotspots report which we’re publishing this week.

It’s very much a question of what to leave out.

And it means that the locations that are included are markets well worthy of your interest and attention.

So get a copy of the new 2021 edition of Top 5 Regional Queensland Hotspots report and discover some of the places I expect to be at the forefront of the Australian property boom.

Some of the investors and others jumping into the rising property boom are buying without care and due diligence.

The property market has seen a dramatic turnaround following a COVID-19 induced downturn in 2020. How long will this next boom last? And what is driving the market?

In this live webinar we will be discussing a range of locations in Sydney, Melbourne, Brisbane and Newcastle that investors should consider for their next investment. We will also be looking at the drivers in the economy and uncover the potential pitfalls that could wobble the property market.

Multi-award-winning Buyers’ Agent Rich Harvey, CEO of Propertybuyer and respected researcher and commentator Terry Ryder Founder of Hotspotting.com.au reviewed a range of topics that you must hear.

They discussed:

• Are we at the start of another property boom? • How should buyers approach a rising market?

• What will transpire after March, once job-keeper finishes?

• Where should I be investing for the best capital growth and cashflow yields?

• What trends has covid set in motion that will continue well into the future? • When will listing volumes start to rise – what is holding vendors back?

• What impact have expats returning had on the property market? • Is the exodus to affordable lifestyle going to continue once the vaccine is in place? • Is now a good time for investors?

The strongest trend to impact Australian real estate in the 21st Century is currently sweeping the nation.

The Exodus to Affordable Lifestyle is creating growth is regional cities and towns which is out-performing the big cities.

The fringe areas of major cities, regional cities, hill change towns and sea change enclaves are all beneficiaries of this compelling trend.

While property prices have been muted in the two biggest cities, smaller cities and regional locations are experiencing strong demand and price uplift.

Ultra-low vacancy rates are another element of the strength of these markets, putting upward pressure on rents and creating higher yields.

The Exodus trend has been driven by technology and improved transport links, as more and more people realise the possibilities of working remotely – and thereby being able to escape the big, expensive, congested cities.

It was a rising tide before the pandemic, with increasing numbers of Australians realising the possibilities of working from home.

The Covid-19 lockdowns have enhanced a trend that was already under way, turning a steady drift into a stampede, by opening the eyes of more Australians to the potential.

The pandemic has supercharged an established trend, making it the driving force of markets across Australia.

The trend was first visible in Regional Victoria with people retreating to hill change towns within 1-2 hours of Melbourne. Locations close to Sydney were also feeling it.

Then the impetus rippled further out to regional centres more distant from the capital cities. It has reached as far north as Darwin, where Melbourne residents and others have headed for the relative safety and affordability of the northern capital (plus the warmer climate).

Before the pandemic, Queensland was already on the relocation wish-lists of many interstate buyers. Now, with many people now working remotely, there is a growing herd migrating north.

At Hotspotting we have been strongly advocating good regional centres for investment for the past three years.

And in October 2020 we published the first edition of our National Top 10 Exodus to Affordable Lifestyle report. It quickly became one of our most popular products.

And this week we published our new 2021 edition of the report.

It outlines our Top 10 picks of locations expected to rise on the back of this trend.

And, because there are so many places with potential for strong growth, we include a B List of 10 locations which missed the cut for the Top 10.

So get yourself a copy of the new 2021 edition of the Exodus to Affordable Lifestyle report – and have a read of it today.