Unearthed: The regional areas ripe for investment | Kanebridge News
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Unearthed: The regional areas ripe for investment

Strong yields make these ‘secondary cities’ attractive options

By Shannon Molloy
Fri, Aug 25, 2023 8:58amGrey Clock 2 min

New analysis has revealed some of Australia’s most promising non-capital city property investment markets, where would-be buyers can find relatively affordable opportunities.

Real estate analytics firm Suburbtrends looked at secondary cities within 200km of a capital and applied more than a dozen key metrics to unearth suburbs that deliver a minimum 4.5 per cent yield.

Kent Lardner, Suburbtrends’ chief analyst, said the research took into account rental affordability, location, socio-economic ranking, price growth, inventory levels and vacancy rates.

That criteria narrowed the search to four regions – Bunbury and Mandurah in Western Australia, and the Gold Coast and Sunshine Coast in Queensland.

“Bunbury boasts the highest count of suburbs making the cut at 12, as well as the most listings available, most house options and the best median yield at 6.2 per cent,” Mr Lardner said.

“This combination of factors portrays Bunbury as an attractive market for both investors and

potential homebuyers.”

Among the suburbs identified was Binningup, which provides a strong market for house investments – with seven currently on the market at a median price of $499,000 and a rental median of $550 per week, yielding a very healthy 7.94 per cent.

College Grove was also a strong pick, with four houses currently on the market at a median price of $492,000 and a rental median of $510 per week, yielding 5.89 per cent.

“Bunbury stood out in our analysis, not just for its gateway status to the southwest region but for the balance it offers between liveability and investment appeal,” Mr Lardner said.

“Its unique characteristics align well with our criteria, making it a significant highlight in our shortlist.”

Meanwhile, the analysis produced 11 suburbs on the Gold Coast that fit the bill – a region that “excels in rental market dynamics”.

The Gold Coast ‘excels in rental market dynamics’

Among them was Bundall, a popular spot for investors. There are currently 12 units available at a median price of $557,000, yielding 5.76 per cent.

A few hours up the road, the Sunshine Coast was another strong performer in the analysis with a host of qualities that indicate a “mature and stable property market”.

Among the picks was the suburb of Wurtulla, which stood out for its unit prospects with four apartments on the market at a median price of $645,000, yielding 4.71 per cent.

Mr Lardner said Buderim was also on the list, with 27 units for sale at a median price of $585,000, yielding 4.85 per cent.

Finally, Mandurah produced four suburbs that fit the research scope, including Halls Head, where there are 64 houses on the market with a median price of $565,600, yielding 4.84 per cent.

The suburb also made the list for units, with eight up for grabs at the moment with a median price of $400,000 and a rental median of $500 per week, yielding 6.91 per cent.”

Mr Lardner said the research offers “a multifaceted perspective” on the current state of the property market in key non-capital locations.

“It’s a snapshot that reveals trends, opportunities, and challenges, providing practical guidance for both investors and homebuyers.”



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UAE Residential Market Review Shows Strong Growth and Record Transactions in Q1 2024

The total transaction volume in Abu Dhabi for the first quarter of the year reached 2,795.

Thu, May 16, 2024 4 min

The CBRE Middle East, a global leader in commercial real estate services and investments, released its latest edition of the UAE Residential Market Review for the first quarter of 2024.

Abu Dhabi Market Overview

During the first quarter of the year, the total volume of transactions in Abu Dhabi stood at 2,795, registering a 22.6% increase compared to the year prior. This increase has been underpinned by an 18.1% rise in off-plan sales and a 34.5% rise in secondary market sales. In the year to Q1 2024, Abu Dhabi’s average apartment and villa prices increased by 4.3% and 2.3%, respectively.

Abu Dhabi’s rental market witnessed a total of 46,130 residential rental contracts in Q1 2024, registering a decline of 10.9% from the year prior. This has been due to a 15.5% decline in the number of renewed rental contracts registered and a 2.4% drop in new rental registrations over the same period. In the year to Q1 2024, average apartment and villa rents have increased by 4.5% and 1.1%, respectively. On the supply front, only 80 units have been delivered in Abu Dhabi in the first three months of the year, with all of this new stock being in Al Raha Beach. An additional 8,660 units are expected to be completed by year-end with 55.8% of this scheduled stock located in Yas Island, Al Sowwah, and Al Shamkha.

Dubai Market Insights

In Dubai, price growth has continued to accelerate during the first quarter of 2024, with average prices increasing by 20.7% in the year to March 2024. Throughout this period, average apartment and villa prices increased by 20.4% and 22.1%, respectively. Although headline average sales rates are still marginally below the 2014 highs by 0.1%, several prominent residential neighbourhoods have already surpassed their 2014 figures.

As of March 2024, average apartment prices stood at AED 1,486 per square foot, and average villa prices reached AED 1,776 per square foot. Average villa sales rates are currently above their 2014 baseline by 22.9%. Rental growth has also gained momentum in 2024, after a period of moderation in 2023. In March 2024, average residential rents registered a year-on-year increase of 21.2%, up from the 20.4% growth registered a month earlier. Over this period, average apartment and villa rental rates grew by 22.1% and 14.5%, respectively. Data from the Dubai Land Department revealed that, in the year to date to March 2024, the total number of rental registrations stood at 159,941, marking an increase of 5.8% from the previous year. As for supply, a total of 6,526 units were delivered in the first quarter of the year, with 59.7% of this supply being located in Meydan One, Jumeirah Village Circle, and Al Furjan. A further 46,086 are expected to be handed over the remainder of the year. However, given historic materialisation rates, the report expects that a limited portion of this upcoming stock will come online as planned.

Record-Breaking Transactions

March 2024 witnessed another record in Dubai’s residential market, with transaction volumes reaching the highest monthly figure on record, marking a year-on-year growth of 13.2%. Throughout this period, off-plan sales and secondary market sales increased by 20.2%, and secondary market sales increased by 2.2%.

In the first quarter of 2024, Dubai’s total transaction volumes reached 35,310. This is the highest total ever recorded in the first quarter of the year, marking an increase of 20.5% from the year prior. Over this period, off-plan transactions recorded an increase of 23.9%, and secondary market transactions rose by 15.2%.

However, in Q1 2024, the total number of sales transactions within the prime market segment registered a decline of 2.1% compared to the year prior. Throughout this period, super-prime transactions recorded a drop of 16.5% year-on-year to stand at a total of 227. These declines witnessed in both markets have been largely underpinned by significant declines in off-plan sales largely attributable to the high levels of demand for off-plan properties and the limited level of upcoming supply. In terms of performance, in the first quarter of 2024, average prime prices registered a year-on-year increase of 16.0%, standing at an average of AED 4,661 per square foot, and average super-prime prices grew by 14.8% over this period, reaching AED 4,978 per square foot.

Taimur Khan, CBRE’s Head of Research MENA in Dubai

Future Projections 

Looking ahead, CBRE expects Dubai’s residential sales market to maintain its upward trajectory. Prices in both the apartment and villa segments of the market will continue to grow, however, not at the same pace. On the rental front, we forecast that residential rents will continue to increase. That being said, the rate of growth will likely moderate.

Taimur Khan, CBRE’s Head of Research MENA in Dubai, comments: “The UAE’s residential market started the year on a relatively strong note, where the elevated demand levels continue to drive performance. The strong levels of activity and high absorption levels, which have reduced available supply, will continue to support price growth in both Abu Dhabi and Dubai over the remainder of the year. In terms of rental growth, we expect that rental rates in Abu Dhabi will continue to rise, with prime areas set to outperform the market. In Dubai, residential rents will continue to increase; however, not at the same rate that we have been seeing to date, and we expect that the rate of change will diminish in the second half of the year.”

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