The Property Markets Set To Lead The Next Growth Cycle

If you want to judge the value of a location, don't judge it on today's numbers.

Judge it by what it is likely to achieve over time.

That's why Hotspotting's reports are all forward looking.

Our national top ten best buyers report is not designed to chase the markets that have already had their best run.

It seeks to identify future growth locations before the crowd arrives and before the strongest years of capital growth have been priced in to those markets.

Now, the goal is simple.

Give investors a better chance of capturing long term capital growth by focusing on markets with the right fundamentals, strong demand drivers and lower risk growth prospects.

The performance of locations identified in past locations of Best Buy shows how that approach has played out.

In 2024, our national top ten best buyers report highlighted locations we believed were well positioned for future growth.

Two years later, the results provide a strong validation of the hotspotting methodology.

Across the ten featured LGAs, the chosen locations delivered capital growth of 27% over two years as the average result.

Of the 172 suburb and property type combinations sampled, 92% of them recorded positive capital growth over two years.

Most importantly, all 10 LGOs recorded positive growth overall.

And the aggregate result was, I repeat, a rise of 27% in two years.

The strongest performances came from the regional Western Australia and Queensland markets, with Geraldton, Bunbury and Kingaroy each delivering average two year growth above 45%.

Grado Geraldton was the standout local government area, averaging 54% growth over two years.

The strongest result for an individual suburb was Rangeway, which is part of the Geraldton market and produced 96% growth for houses in that location.

Yes, that means that house value is almost doubled in two years.

There were also strong results from Anna Brisbane, the Gold Coast and the Redcliffe Peninsula, all in southeast Queensland, Tea Tree Gully in Adelaide and Canterbury Bankstown in Sydney.

Now, these were not speculative markets.

They were markets chosen because of the underlying fundamentals supporting the case for growth.

But keep in mind that Best Buys is not about short term hype or trying to pick the next market to move over a single quarter or even the next 12 months.

It's about identifying locations with the ingredients to perform over five to ten years.

So the best outcomes for all those 2024 selections are yet to come.

We look for depth of demand, improving sales activity, tight rental conditions, infrastructure investment, employment growth, population movement and affordability.