Australias Properties Under 400K

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    Australia's 40 hottest suburbs under 400k

    October 26, 2011, 12:38 pm By Vanessa de Groot Yahoo!7

    Now is the prime time to buy, but where should capital city investors looking to get in low behunting for property?

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    With experts claiming that now is the prime time to buy, but where should capital cityinvestors be hunting for property? To help you narrow down your search, Australian PropertyInvestor Magazine reveals 40 metro suburbs under 400k set to outperform.

    There are still many areas in Australia's capital cities that are undervalued and the currentmarket conditions are adding to the opportunity for investors to make long-term gains inthese areas, with prices having softened. (More From Yahoo!7 Finance:Australia's HottestSuburbs Under 500k)

    The 40 hot suburbs API has listed might be more affordable for property because they'vesuffered a stigma in the past, or perhaps just been overlooked because other suburbs weremore attractive, but that doesn't mean they don't have the potential to grow. Quite theopposite, in fact! We all know that many ugly duckling suburbs out there have turned intoreal estate swans, even if once upon a time it was hard to foresee.

    Before buying though, all investors must do their own independent research into an area todetermine if it's right for their investment goals. And be selective of where you buy in eacharea there are parts of some suburbs that are expected to perform better than others, socaution needs to be exercised in order to maximise the growth potential.

    South Australia's capital city Adelaide dominates this affordable metro hotspots list, with 15inclusions, while Perth, Hobart and Brisbane also have a good showing. All the capital citieswere represented by at least one suburb. (More From Yahoo!7 Finance:Buying vs Renting Which Will Make You Richer?)

    Please note, all data has been provided by RP Data. For houses the search radius was within11 kilometres of capital cities (narrowed to five kilometres for Darwin, Canberra andHobart), while for units the search radius was within five kilometres of each capital city. Thehousing type that each suburb was picked for is noted below.

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    SNR = statistically not reliable. Demographic data is current as per the Australian Bureau ofStatistics 2006 Census. (More From Yahoo!7 Finance: Which Aus City Is A Playground ForThe Rich?)

    JUMP TO YOUR STATE:

    NEW SOUTH WALES

    VICTORIA

    QUEENSLAND

    WESTERN AUSTRALIA

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    NORTHERN TERRITORY

    NEW SOUTH WALES

    Potts Point, NSW

    Distance from Sydney GPO: 1 kilometre

    Property type: UnitMedian unit price: $390,000

    Weekly median advertised rent: $415

    Gross rental yield: 5.5%

    Population: 6878

    Proportion of rented properties in the suburb: 44.2%

    Proportion of units: 90.2%

    Situated on the Sydney Harbour waterfront, Potts Point is just east of the Sydney CBD.

    The suburb was included in the St George/RP Data National Property Hotspots Report 2011released earlier this year.

    Compared to surrounding suburbs Potts Point represents "extremely good value", accordingto the report, and it's one of the most affordable suburbs within five kilometres of Sydney'sCBD, if not the most affordable, with one of the strongest indicative gross rental yields.

    As well as being affordable, close to the city and close to a large variety of amenity, aboveaverage population growth in Potts Point suggests potential supply issues may place upward

    pressures on prices and the area may see further densification take place.

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    While RP Data is confident in Potts Point's potential for growth, Patrick Bright of EPSProperty Search warns investors to look at what they're buying. He says Potts Point unitshave a low median price compared to the rest of Sydney because it has a lot of one-bed andstudio apartments; property types he believes are not good performers when it comes tocapital growth and aren't easy to finance.

    View Property For Sale In Potts Point

    VICTORIA

    Flemington, VIC

    Distance from Melbourne GPO: 5 kilometres

    Property type: Unit

    Median unit price: $385,000

    Weekly median advertised rent: $290

    Gross rental yield: 3.9%

    Population: 7376

    Proportion of rented properties in the suburb: 53.8%

    Proportion of units: 54.4%

    It's where the Melbourne Cup is held every year, but Flemington has other drivers that couldsee its residential property market race ahead. It used to be home to heavy industry, but inrecent years gentrification has transformed it into a sought-after spot.

    There's good public transport in Flemington, with buses, trams and trains, and there's alsoplenty of amenity with shops, restaurants, cafes, bars and clubs.

    Michael Yardney, director of Metropole Property Investment Strategists, describesFlemington as a "good suburb close to the CBD". He says apartments in the suburb makegood investments, but warns that one must be selective. Some pockets have social issues andare crammed with public housing, particularly in the form of high-rises.

    "Choose an apartment in a block in one of the leafy streets and one surrounded by houseswhere there'll be lots of owner-occupiers rather than the patches of the suburb that are

    dominated by apartments."Carlton, VIC

    Distance from Melbourne GPO: 2 kilometres

    Property type: Unit

    Median unit price: $275,000

    Weekly median advertised rent: $390

    Gross rental yield: 7.4%

    Population: 12,050

    Proportion of rented properties in the suburb: 68.5%

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    Proportion of units: 78.1%

    There's no doubting that Carlton offers culinary bliss with its famous Lygon Streetrestaurants, but when it comes to property there are two trains of thought and Carlton'sinclusion on this hotspots list will be somewhat controversial.

    Some property professionals warn against investing in the suburb for reasons including thatit's had low average capital growth in the past and there's a potential oversupply of smallapartments, many of which are one-bedroom and student accommodation.

    But despite these concerns, RP Data believes it's got good potential, naming Carlton as ahotspot for units in the St George/RP Data National Property Hotspots Report 2011 releasedearlier this year.

    The report recognises that over the past decade unit prices have experienced nominal growthof 2.9 per cent annually on average, but it notes that over the 12 months to November 2010

    units recorded superior price growth of 9.7 per cent and, according to the report, "Carlton isin a solid position to support future price growth".

    Apart from being close to the city, just north of the CBD, the hotspots report notes Carltonbenefits from significant amenities, including high quality public transport and shoppingfacilities.

    It says the rental market within Carlton is "extremely strong" and with affordable prices, itprovides yields upwards of seven per cent, which are quite attractive to investors.

    "The nearby universities will continue to support rental demand within the suburb, as will theproximity to the CBD," it reads, adding that the suburb has experienced average populationgrowth well above that of most areas of Melbourne.

    View Property For Sale In Carlton

    QUEENSLAND

    Rocklea, QLD

    Distance from Brisbane GPO: 9 kilometres

    Property type: HouseMedian house price: $317,500

    Weekly median advertised rent: $340

    Gross rental yield: 5.6%

    Population: 1500

    Proportion of rented properties in the suburb: 32.1%

    Proportion of houses: 92%

    There's no doubt many people will turn their nose up and raise their eyebrows upon hearing

    the mention of Rocklea in this list. But that's been the case for many 'ugly duckling' suburbsin the past that have then gone on to become sought-after property swans.

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    Yes, Rocklea is largely industrial and was badly battered during the January floods inBrisbane, so it's a little stigmatised. But that doesn't mean investors should strike it off theirlist, or that it doesn't have potential for residential property price growth.

    Terry Ryder ofHotspotting.com.au points out that Rocklea has one of the best long-term

    capital growth rates specifically the average annual rise in median house prices over the past10 years in the Brisbane metropolitan area.

    "The list of leading growth suburbs for Brisbane is dominated by three areas: Ipswich City,Logan City and the industrial southwest precinct of Brisbane City, including places likeRocklea, Acacia Ridge and Archerfield," he says.

    "These places have a lot of industrial property but the housing there is affordable and thereare train links to the city. It shows, again, that 'ugly real estate' attracts plenty of strongdemand if there are attractions like affordability and rail connections.

    "Rocklea has a capital growth average of 15 per cent per year over 10 years, which isexceptional."

    While Rocklea has potential for growth, investors looking to buy in the suburb must do theirresearch diligently, especially in light of the recent floods.

    View Property For Sale In Rocklea

    Greenslopes, QLD

    Distance from Brisbane GPO: 5 kilometres

    Property type: Unit

    Median unit price: $363,750

    Weekly median advertised rent: $335

    Gross rental yield: 4.8%

    Population: 8088

    Proportion of rented properties in the suburb: 50.7%

    Proportion of units: 48.4%

    "This area has good potential for future growth," says Property Searchers director and buyersagent Scott McGeever, about the inner south Brisbane suburb of Greenslopes.

    He lists a multitude of reasons for this, not least of which is the fact that Greenslopes is welllocated, being close to the city, public transport specifically the bus, having access to theEastern Busway and the M1, which is a major highway.

    The suburb also has good amenity with a shopping mall, notes McGeever, and the StonesCorner shopping and caf strip is close by. There are plenty of tenants in Greenslopes,especially with the Greenslopes Private Hospital.

    View Property For Sale In Greenslopes

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    Cooparoo, QLD

    Distance from Brisbane GPO: 5 kilometres

    Property type: Unit

    Median unit price: $375,000

    Weekly median advertised rent: $350

    Gross rental yield: 4.9%

    Population: 13,800

    Proportion of rented properties in the suburb: 42.9%

    Proportion of units: 46.1%

    McGeever points out that Coorparoo is well located and residents have two types of publictransport to choose from bus and rail.

    McGeever advises investors to look for units in well-located older and smaller complexes, setamong single housing areas.

    Colliers International research analyst in Brisbane Alex Beer points out that Coorparoobenefits from its proximity to the Pacific Motorway and Gateway Motorway for access to theGold and Sunshine Coasts, it has an abundance of parks, reserves and sporting fields and isclose to leading Brisbane secondary and tertiary education institutions.

    View Property For Sale In Coorparoo

    Windsor, QLD

    Distance from Brisbane GPO: 4 kilometres

    Property type: Unit

    Median unit price: $385,000

    Weekly median advertised rent: $360

    Gross rental yield: 4.9%

    Population: 6164

    Proportion of rented properties in the suburb: 45.1%

    Proportion of units: 37.7%

    The well-positioned suburb of Windsor already has good accessibility to the Brisbane CBDwith both bus and train public transport options and McGeever points out that the NorthernBusway that's currently being built in Brisbane's north cuts through the suburb, which willonly enhance its accessibility.

    Beer says Windsor also benefits from its connectivity to the north, with the GatewayMotorway; the south, with the Clem 7 tunnel; and the west, with the Inner City Bypass andsoon-to-be-constructed Legacy Way. In addition, Windsor has the benefit of being close tothe Royal Brisbane Hospital, says McGeever.

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    Investors should look at older six-pack unit developments in this suburb, he says, set amongstareas that are dominated by houses, where there's a nice residential feel.

    View Property For Sale In Windsor

    Spring Hill QLD

    Distance from Brisbane GPO: 1 kilometre

    Property type: Unit

    Median unit price: $386,000

    Weekly median advertised rent: $430

    Gross rental yield: 5.8%

    Population: 4835

    Proportion of rented properties in the suburb: 44.6%

    Proportion of units: 71.9%

    Situated on the fringe of Brisbane's CBD, Spring Hill will fare well when it comes to futurecapital growth, believes National Property Research director Matthew Gross.

    He says it has all the hallmarks of a solid investment suburb you can walk to the city, or ifyou don't want to walk it's a cheap cab fare; it has access to all the amenity of the CBD andthe nearby fringe suburb of Fortitude Valley; it's got good public transport with both bus andrail; and it's got education precincts all around it.

    View Property For Sale In Spring Hill

    In Pictures: Absurd Places For Rent

    Annerley, QLD

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    Distance from Brisbane GPO: 5 kilometres

    Property type: Unit

    Median unit price: $388,000

    Weekly median advertised rent: $350

    Gross rental yield: 4.7%

    Population: 9571

    Proportion of rented properties in the suburb: 49%

    Proportion of units: 40.6%

    Gross describes Annerley, just south of Brisbane's CBD, as a "great suburb".

    "Annerley is one of those sleeper suburbs," he says. "It doesn't get a lot of notice there'smore focus on Greenslopes, Stones Corner and Woolloongabba, yet Annerley in manyrespects is in a better position than all of those. I like it a lot."

    Gross notes that Annerley is close to South Bank and West End, where there's plenty ofamenity, especially in the way of entertainment; it's close to educational facilities; and there'sa few hospitals nearby. It's also got good access to the city via the M1 and buses via theSouth East Busway.

    View Property For Sale In Annerley

    WESTERN AUSTRALIA

    Wembley, WA

    Distance from Perth GPO: 5 kilometres

    Property type: Unit

    Median unit price: $290,000

    Weekly median advertised rent: $310

    Gross rental yield: 5.6%

    Population: 9613

    Proportion of rented properties in the suburb: 34.3%

    Proportion of units: 36.1%

    There's an enormous diversity of housing in Wembley, according to Reaffirm senior propertyadviser Simon Moore.

    There are many homes worth more than $1.5 million in the suburb, he says, but at the otherend of the spectrum there are many high-rise complexes with units valued at well below$300,000, reflecting a time when social housing programs saw the development of flat style

    public housing en masse in certain areas.

    Moore notes that Wembley is one of the more sought after suburbs of Perth on the border of the

    'western suburbs' area.

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    "Wembley has the advantage of bordering the inner city suburb of Subiaco, home to one ofPerth's most vibrant lifestyle areas," he says.

    "It's also serviced by shops, cafes, specialty stores and restaurants along Cambridge Street,which add to the character and feel of the area.

    "Cambridge Street would offer superior long-term investment prospects for any buyerlooking to invest in this area."

    View Property For Sale In Wembley

    Glendalough, WA

    Distance from Perth GPO: 5 kilometres

    Property type: Unit

    Median unit price: $310,000

    Weekly median advertised rent: $320

    Gross rental yield: 5.4%

    Population: 2729

    Proportion of rented properties in the suburb: 50%

    Proportion of units: 54%

    Located in Perth's inner northwest, Glendalough borders the Mitchell Freeway and northernrail link, giving it excellent access to the CBD, according to Moore.

    For a "fundamentally well-located suburb" close to the city, its prices still appear to representa sound long-term prospect, he says. But Moore points out that the suburb's weakness at themoment is its limited lifestyle amenity, along with a concentration of unit and flat stylehousing, which makes the area somewhat unattractive to some buyers.

    Investors would see strong rental yields of four to five per cent in Glendalough, notes Moore,and would be able to pick up a property for a relatively small outlay compared to Perth'smedian house price, which is in the high $400,000s.

    View Property For Sale In Glendalough

    Maylands, WA

    Distance from Perth GPO: 4 kilometres

    Property type: Unit

    Median unit price: $325,000

    Weekly median advertised rent: $310

    Gross rental yield: 5%

    Population: 10,448

    Proportion of rented properties in the suburb: 44.5%

    Proportion of units: 47.1%

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    Maylands has a mixture of flats, units, villas and higher value riverside housing, notes Moore.

    The suburb, situated to the east of the city, has longer-term potential, he says, because itborders well-regarded suburbs such as Mount Lawley and Inglewood.

    Lifestyle amenity such as cafes, restaurants and shopping is currently light on withinMaylands itself, but Moore notes that the Beaufort Street precinct in Inglewood is within easytravelling distance.

    "Social stigma continues to 'hold back' the area to a certain extent, however in many waysthis provides longer-term investors with the perfect opportunity to buy in a fundamentallywell-located suburb for a low price," he says.

    View Property For Sale In Maylands

    Inglewood, WA

    Distance from Perth GPO: 5 kilometres

    Property type: Unit

    Median unit price: $352,000

    Weekly median advertised rent: $335

    Gross rental yield: 4.9%

    Population: 5045

    Proportion of rented properties in the suburb: 33%

    Proportion of units: 20%

    For investors with a low budget and looking to buy property close to lifestyle amenities andthe CBD, the inner northeastern Perth suburb of Inglewood has appeal, according toMomentum Wealth managing director Damian Collins.

    Inglewood is next to Maylands (also included in this list) but Collins says it has a differentfeel, with the majority of housing being made up of detached houses. Many of the units thatdo exist are older, he says, which is why the median price is lower.

    Inglewood also borders Mount Lawley, where there's a golf course and a campus of the Edith

    Cowan University.View Property For Sale In Inglewood

    Mirrabooka, WA

    Distance from Perth GPO: 10 kilometres

    Property type: House

    Median house price: $360,000

    Weekly median advertised rent: $350

    Gross rental yield: 5.1%

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    Population: 7798

    Proportion of rented properties in the suburb: 29.3%

    Proportion of houses: 89.8%

    To date, the northern Perth suburb of Mirrabooka may not have had the best name.

    "Mirrabooka has historically been considered a lower socio-economic area and tarnished bysome surrounding suburbs such as Balga," says Collins.

    Things are looking up though. Collins points out that Dianella, a more affluent area, sits to itssouth side, and he's optimistic about Mirrabooka's future prospects.

    "In July the WA State Government announced its new transport plan, Public Transport forPerth in 2031, which included a proposal for a light rail service from Mirrabooka to the cityand then linking on to local universities," he says.

    "If this eventuates then expect some strong price growth in the area and along thesurrounding transport corridor."

    View Property For Sale In Mirrabooka

    Joondanna, WA

    Distance from Perth GPO: 5 kilometres

    Property type: Unit

    Median unit price: $369,000Weekly median advertised rent: $345

    Gross rental yield: 4.9%

    Population: 4191

    Proportion of rented properties in the suburb: 37.7%

    Proportion of units: 9.2%

    "For investors looking for long-term growth and out-performance, Joondanna rates highly,"says Collins.

    There's plenty of amenity, he says, with an already well-established caf and restaurantstrip along Main Street, as well as in nearby Mount Hawthorn.

    Joondanna is situated on the northern side of Perth and there are a number of roads thatprovide access to surrounding locations such as the CBD and the beach.

    In terms of public transport, there's a local bus service to the CBD in Joondanna, but thesuburb is only serviced by trains at nearby Glendalough, Collins says.

    View Property For Sale In Joondanna

    Cannington, WA

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    Distance from Perth GPO: 10 kilometres

    Property type: House

    Median house price: $385,000

    Weekly median advertised rent: $370

    Gross rental yield: 5%

    Population: 4094

    Proportion of rented properties in the suburb: 45.1%

    Proportion of houses: 58%

    Perth residents have traditionally gravitated to areas close to the coast and the northwest partsof town, and as a result, Collins says, Cannington has "flown under the radar". It's expected to

    become more popular as Perth grows in size though, with people coming to appreciate thevalue of living near the city and transport.

    Collins points out that Cannington sits on the Armadale train line and has access to the CBDfrom Albany Highway. In terms of retail amenity it's home to the Westfield CarouselShopping Centre, which proclaims itself as the biggest shopping centre in Perth.

    View Property For Sale In Cannington

    In Pictures: Expensive Celebrity Home Escapes

    SOUTH AUSTRALIA

    Fitzroy, South Australia

    Distance from Adelaide GPO: 4 kilometres

    Property type: Unit

    Median unit price: $230,500Weekly median advertised rent: SNR

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    Gross rental yield: SNR

    Population: 755

    Proportion of rented properties in the suburb: 22.5%

    Proportion of units: 10%

    Fitzroy is a "fantastic location", being in close proximity to North Adelaide, the CBD, thenew Royal Adelaide Hospital scheduled for completion in 2016 and the soon to beredeveloped Adelaide Oval, which will be the home of AFL football in SA from 2014, saysAcquired Real Estate director Chris Nicolas.

    He notes that any future development around the Torrens River may also have a positiveexternality on the suburb's value.

    Nicolas describes Fitzroy as a "small prestigious suburb" on the fringe of North Adelaide.

    The unit stock in the suburb is limited and is usually found on the arterial, Prospect Road, hesays.

    "The one-bedroom units will sell between the low to mid $200,000s, while a two-bedroomunit in Fitzroy will have a price range between the low to mid $300,000s."

    View Property For Sale In Fitzroy

    Kurralta Park, SA

    Distance from Adelaide GPO: 4 kilometresProperty type: Unit

    Median unit price: $255,000

    Weekly median advertised rent: $245

    Gross rental yield: 5%

    Population: 2439

    Proportion of rented properties in the suburb: 42.1%

    Proportion of units: 34%

    Residential property values in Kurralta Park would likely be pushed upwards if a mootedtransit-oriented development (TOD) goes ahead on the Anzac Highway at neighbouringPlympton, beside the popular The Highway hotel, according to Nicolas.

    As well as involving the construction of residential apartments, the $70 million project wouldprovide greater amenity in the area, including cafes, restaurants and shops, which wouldbenefit Kurralta Park. The TOD would also connect the community to various modes oftransport including bus, train and tram.

    Nicolas notes that Kurralta Park is "in a really good location", being only four kilometressouthwest of the Adelaide CBD, six kilometres from the beach at Glenelg and just one

    kilometre from the Ashford Hospital. It has a local shopping precinct and is only 1.5kilometres from the Adelaide Showgrounds, he adds.

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    View Property For Sale In Kurralta Park

    Brooklyn Park, SA

    Distance from Adelaide GPO: 5 kilometres

    Property type: UnitMedian unit price: $271,000

    Weekly median advertised rent: $260

    Gross rental yield: 5%

    Population: 4287

    Proportion of rented properties in the suburb: 38.3%

    Proportion of units: 40.3%

    "Brooklyn Park provides some great investment opportunities with strong demand from

    renters," says Ironfish managing director Damon Nagel.

    It's in a good location between the city and the beach and it's next to Adelaide Airport, whichis forward-planning a new terminal to service charter flights to mine sites for fly in-fly outworkers.

    "This will make Brooklyn Park a desirable location for people working in the state's growingmining industry," says Nagel.

    He also points out that the suburb is close to the River Torrens Linear Park with its walkingand cycle path that runs from the city to the sea, as well as Harbour Town shopping centre atWest Beach. The exclusive Kooyonga Golf Club is also in Brooklyn Park.

    View Property For Sale In Brooklyn Park

    In Pictures: Monster Billionaire Mansions

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    CONTINUE TO PAGE 2 OF THE HOTTEST SUBURBS UNDER 400K.

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    More of Australia's 40 hottest suburbs

    under 400k

    Now is the prime time to buy, but where should capital city investors looking to get in low be

    hunting for property?

    Ashford, SA

    Distance from Adelaide GPO: 3 kilometres

    Property type: Unit

    Median unit price: $280,000

    Weekly median advertised rent: $300

    Gross rental yield: 5.6%

    Population: 684

    Proportion of rented properties in the suburb: 50.1%

    Proportion of units: 48.4%

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    Ashford is a small inner southwestern suburb of Adelaide that only has around 10 streets,according to WBP Property Group SA manager Bart Quinn. Housing in the area includes amix of 1970s and 1980s units and larger detached homes.

    "Unit prices in inner suburbs such as Ashford experienced rapid capital growth during the

    first homeowners boom of 2009," says Quinn. "While prices have since eased for these typesof homes, rental growth continues, resulting in an improvement in investor yields."

    Black Forest, SA

    Distance from Adelaide GPO: 4 kilometres

    Property type: Unit

    Median unit price: $285,000

    Weekly median advertised rent: $270

    Gross rental yield: 4.9%

    Population: 1846Proportion of rented properties in the suburb: 34.6%

    Proportion of units: 29.4%

    Situated just near Ashford (also on this hotspots list), but a little further south of the AdelaideCBD, Black Forest is a very similar suburb, according to Quinn.

    Just like Ashford, he says first homebuyer activity in Black Forest caused unit prices to riserapidly during 2009, when extra incentives were on offer for these buyers, but prices havenow eased, paving the way for investors to negotiate discounted sale prices and takeadvantage of improving yields.

    Amenity within Black Forest itself may not be great, but it's close to the CBD and all itsservices.

    Accessibility to and from the CBD and elsewhere is also more than adequate with two trainstations nearby, namely Emerson and Clarence Park on the Noarlunga railway line, and theGlenelg tram line sits on the other side of Black Forest.

    South Road, one of the main roads that leads to the Anzac Highway and into the city, also

    borders Black Forest.View Property For Sale In Black Forest

    Ottoway, SA

    Distance from Adelaide GPO: 11 kilometres

    Property type: House

    Median house price: $301,750

    Weekly median advertised rent: $288

    Gross rental yield: 5%

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    Population: 2275

    Proportion of rented properties in the suburb: 32.3%

    Proportion of houses: 75.1%

    Ottoway, along with its neighbouring suburb of Rosewater (also on this hotspots list), issituated near Port Adelaide, northwest of the CBD.

    Port Adelaide is undergoing a revitalisation, with a number of projects in and around the areaincluding a $2 billion urban redevelopment project called Newport Quays, transforming 50hectares of waterfront land over a 10-year period into homes and amenity; transportinfrastructure in the form of the $180 million Port River Bridges and Port River Expressway;the development and expansion of a naval industry hub at nearby Osborn, called TechportAustralia; extension of light rail services from Adelaide's CBD to Port Adelaide andSemaphore, due for completion in 2018; and the Port has also been nominated as a prioritylocation for new transit-oriented development activity under the State Government's proposed30-Year Plan for Greater Adelaide.

    Nicolas notes that the suburb of Port Adelaide, to the north of Ottoway, and Alberton,situated to the south, both have median house prices over $400,000, which means the median

    price in both Ottoway and Rosewater has the potential to increase.

    View Property For Sale In Ottoway

    Holden Hill, SA

    Distance from Adelaide GPO: 11 kilometresProperty type: House

    Median house price: $326,250

    Weekly median advertised rent: $298

    Gross rental yield: 4.7%

    Population: 3042

    Proportion of rented properties in the suburb: 31.3%

    Proportion of houses: 79.8%

    Situated in Adelaide's northeast, Holden Hill is close to Gilles Plains (also on this hotspotslist), but is further from the CBD, situated around Grand Junction Road, next to Valley View(another one to make the list).

    Nicolas notes that Holden Hill is close to Modbury, which is home to the Westfield Tea TreePlaza Shopping Centre and a hospital, and is next door to Valley View Par 3 Golf Course.

    Nagel says Holden Hill is a well-established suburb popular with families and firsthomebuyers. He says it's in high demand from renters and attracts good tenants.

    "The area has become attractive to workers at the local Holden Hill Police Station and the

    nearby Modbury Hospital."

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    Northfield, SA

    Distance from Adelaide GPO: 9 kilometres

    Property type: House

    Median house price: $355,000

    Weekly median advertised rent: $320

    Gross rental yield: 4.7%

    Population: 3312

    Proportion of rented properties in the suburb: 40.1%

    Proportion of houses: 79.9%

    In the past Northfield has had a stigma due to the condition of local housing, as well as thefact that the Yatala Labour Prison is within its boundaries, according to Nagel.

    But it's benefited significantly from the development of neighbouring Northgate andLightsview, he says, which have both been popular and well planned with new housingdevelopments built.

    Nagel advises that the more desirable part of the suburb is located close to these newdevelopments, where prices are a bit higher. This is the 'halo effect', he says.

    Northfield is an easy commute to the city for work and entertainment, and shopping in thearea has vastly improved, he says.

    View Property For Sale In Northfield

    In Pictures: Mansions Of The Rich & Powerful

    Enfield, SA

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    Distance from Adelaide GPO: 8 kilometres

    Property type: House

    Median house price: $355,000

    Weekly median advertised rent: $323

    Gross rental yield: 4.7%

    Population: 4386

    Proportion of rented properties in the suburb: 35.5%

    Proportion of houses: 76.7%

    House prices in Enfield took a significant dip earlier in the year, so it's a good time forinvestors to look at property in the area, says Nagel.

    It's also only about 20 minutes from the beach along Grand Junction Road, and the newlyupdated Northpark Shopping Centre in Prospect and the Sefton Plaza Shopping Centre in

    Sefton Park are close by.

    Nagel notes that Enfield is home to a large number of Housing Trust properties.

    View Property For Sale In Enfield

    Pennington, SA

    Distance from Adelaide GPO: 10 kilometres

    Property type: House

    Median house price: $354,750

    Weekly median advertised rent: $320

    Gross rental yield: 4.7%

    Population: 3601

    Proportion of rented properties in the suburb: 36%

    Proportion of houses: 69.9%

    Pennington has traditionally been less sought after than suburbs further south; a likely resultof the suburb's proximity to the industrial suburbs of Wingfield and Port Adelaide, saysQuinn.

    Located in Adelaide's northwest, next to Athol Park (also on this hotspots list), Penningtonhas also historically been a working class suburb and contains a mix of circa 1950s homesand a limited number of older period homes, according to Quinn.

    He points out that Pennington is situated between new developments such as the WestwoodEstate in the suburbs of Ferryden Park, Angle Park, Athol Park, Mansfield Park andWoodville Gardens, and Newport Quays at Port Adelaide.

    View Property For Sale In Pennington

    Athol Park, SA

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    Distance from Adelaide GPO: 10 kilometres

    Property type: House

    Median house price: $353,250

    Weekly median advertised rent: $330

    Gross rental yield: 4.9%

    Population: 1307

    Proportion of rented properties in the suburb: 38.7%

    Proportion of houses: 58.8%

    Situated in Adelaide's northwest, Athol Park is just near the suburb of Pennington, alsoincluded in this hotspots list. Athol Park and its surrounding suburbs have undergonegentrification over the past decade, with Housing Trust homes making way for newdevelopments, according to Nagel.

    He says investors in the suburb will benefit from upgrades being made to South Road, whichwill ease congestion along Adelaide's north-south corridor.

    "Athol Park will also benefit in the long term from its proximity to Woodville, where houseprices are strong, and where some people have been priced out of the market," advises Nagel.

    View Property For Sale In Athol Park

    Rosewater, SA

    Distance from Adelaide GPO: 11 kilometres

    Property type: House

    Median house price: $335,700

    Weekly median advertised rent: $295

    Gross rental yield: 4.6%

    Population: 3312

    Proportion of rented properties in the suburb: 27.5%

    Proportion of houses: 79.3%

    Like Ottoway (also on this list), Rosewater is expected to benefit from its proximity to PortAdelaide, where many projects are under way or planned, including Newport Quays,transport infrastructure, Techport Australia, light rail and a TOD (see Ottoway, on page 39,for more detail on these projects).

    The neighbouring suburbs of Rosewater and Ottoway are both surrounded by suburbs withhigher median house prices of over $400,000 including Port Adelaide and Alberton,which is another reason they're likely to have residential property price growth, says Nicolas.

    "There are good zoning policy areas in both Rosewater and Ottoway with minimum allotmentsizes of 250 square metres to 300 square metres permitted in the majority of the suburbs," he

    says.

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    View Property For Sale In Rosewater

    Kilburn, SA

    Distance from Adelaide GPO: 8 kilometres

    Property type: HouseMedian house price: $339,000

    Weekly median advertised rent: $328

    Gross rental yield: 5%

    Population: 4336

    Proportion of rented properties in the suburb: 54.2%

    Proportion of houses: 52.1%

    The redevelopment of part of the nearby former Islington rail yards site is expected to give

    Kilburn the boost it needs.

    The derelict rail yards site in Dudley Park is earmarked for a mix of retail, commercial, lightindustry and apartments.

    The City North Messenger newspaper in Adelaide recently quoted Kilburn Blair AtholCommunity Action Group director Steve Anderson as saying the redevelopment would bringa new optimism and jobs to the area.

    Quinn also believes Kilburn will benefit from the planned redevelopment of the Islington railyards, as will other inner northern suburbs surrounding the development.

    Proximity and access to the CBD from Kilburn, situated to the north, is generally good, hepoints out.

    View Property For Sale In Kilburn

    Valley View, SA

    Distance from Adelaide GPO: 11 kilometres

    Property type: House

    Median house price: $341,750Weekly median advertised rent: $320

    Gross rental yield: 4.9%

    Population: 5981

    Proportion of rented properties in the suburb: 13.6%

    Proportion of houses: 96.4%

    Valley View is right next to Holden Hill, which also features on this list. Like Holden Hill,the suburb benefits from its proximity to Modbury and its amenity.

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    Valley View made API's Hot 100 list this year, chosen by REBAA SA representative andWaterman and Waterman principal Chris Waterman.

    "While still affordable, it's surrounded by new subdivision and enjoying the benefits of urbanconsolidation and presents a great investment opportunity," Waterman says.

    He points out that there's potential to redevelop existing properties in Valley View.

    View Property For Sale In Valley View

    Gilles Plains, SA

    Distance from Adelaide GPO: 10 kilometres

    Property type: House

    Median house price: $345,500

    Weekly median advertised rent: $285

    Gross rental yield: 4.3%

    Population: 2822

    Proportion of rented properties in the suburb: 40.1%

    Proportion of houses: 83.5%

    Historically a lower socio-economic area situated in Adelaide's north, Gilles Plains isbenefiting from gentrification that has seen the demolition of old fibro homes andconstruction of newer medium density housing, according to Quinn.

    "Located south of Grand Junction Road, Gilles Plains and surrounding suburbs haveundergone a significant amount of redevelopment in recent years," he says. "Offeringmultiple transport routes, suburbs south of Grand Junction Road are a much better long-terminvestment than properties located further north."

    View Property For Sale In Gilles Plains

    TASMANIA

    Lenah Valley, TAS

    Distance from Greater Hobart GPO: 3 kilometres

    Property type: House

    Median house price: $390,000

    Weekly median advertised rent: $360

    Gross rental yield: 4.8%

    Population: 5589

    Proportion of rented properties in the suburb: 20.7%

    Proportion of houses: 83.8%

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    Positioned on Hobart's western shore, Lenah Valley sits to the west of more "highly fancied"suburbs such as New Town and Mount Stuart with medians of $450,000 and $505,000respectively, notes Zubin.

    "With Lenah Valley's median hovering at around $400,000, and essentially having all the

    same fundamentals and amenities of New Town and Mount Stuart, Lenah Valley offersinvestors the opportunity to secure property in a well-regarded area with expectations of goodgrowth if you buy well and returns of around five per cent," he says.

    The suburb will be a "quiet achiever", according to Zubin.

    View Property For Sale In Lenah Valley

    In Pictures: Monster Billionaire Mansions

    Lindisfarne, TAS

    Distance from Greater Hobart GPO: 5 kilometres

    Property type: House

    Median house price: $382,500Weekly median advertised rent: $355

    Gross rental yield: 4.8%

    Population: 5679

    Proportion of rented properties in the suburb: 17.7%

    Proportion of houses: 84.6%

    "Lindisfarne offers all the basic fundamentals when looking for an area to invest on the fringeof the city," according to Zubin. It's in a good location close to the CBD, with good

    amenities, including a local shopping village and the Eastlands Shopping Centre at Rosny

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    Park (Tasmania's biggest shopping centre) only 10 minutes away and it has good publictransport facilities.

    View Property For Sale In Lindisfarne

    Lutana, TAS

    Distance from Greater Hobart GPO: 5 kilometres

    Property type: House

    Median house price: $289,000

    Weekly median advertised rent: $320

    Gross rental yield: 5.8%

    Population: 2336

    Proportion of rented properties in the suburb: 29.8%

    Proportion of houses: 89.4%

    Change is afoot in Lutana, according to Zubin.

    The suburb, situated on the River Derwent, has been home to the zinc works for almost acentury and although it was once regarded as a residential area for workers of the zinc worksand the location for government housing, things are changing.

    Zubin says Lutana has undergone environmental improvements and workers aren't based inthe suburb like they used to be.

    "There has been a demographic change over the past decade which has seen morehomeowners and investors gentrify the suburb,"?he says.

    "Investors recognising the change are capitalising from the growth potential and location tothe CBD."

    Zubin says there are good buying opportunities for investors in Lutana, with a current medianaround $300,000. Typically the properties are 50 to 60 years old, on larger blocks of up to1000 square metres and many with renovation potential.

    View Property For Sale In LutanaMoonah, TAS

    Distance from Greater Hobart GPO: 5 kilometres

    Property type: House

    Median house price: $282,000

    Weekly median advertised rent: $310

    Gross rental yield: 5.7%

    Population: 5084

    Proportion of rented properties in the suburb: 27.7%

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    Proportion of houses: 79.4%

    Moonah was included in API's Hot 100 this year and profiled in API last month.

    Real Estate Buyers Association of Australia (REBAA) Tasmania representative and My Property

    Hunter principal Rob Zubin believes the suburb, situated on the northern fringe of

    Hobart's CBD, has a lot going for it.

    He points out that the adjoining suburb of New Town, closer to the CBD, has a median pricein the mid-$400,000s, but Moonah and its neighbouring suburb of West Moonah (also on thishotspots list) have median prices hovering around $300,000. Both suburbs are well serviced

    by local amenities, public transport and substantial strip shopping, says Zubin, and yet they'reonly 10 minutes' drive from the Hobart CBD.

    View Property For Sale In Moonah

    West Moonah, TAS

    Distance from Greater Hobart GPO: 5 kilometres

    Property type: House

    Median house price: $309,000

    Weekly median advertised rent: $310

    Gross rental yield: 5.2%

    Population: 3894

    Proportion of rented properties in the suburb: 28.3%

    Proportion of houses: 75.5%

    "Moonah and West Moonah will continue to offer medium to long-term growth benefits forinvestors," says Zubin.

    He picked the inner Hobart suburb of Moonah for API's Hot 100 this year, with thejustification that it offers good value for money, surrounded by quality schools, shoppingstrips and sporting facilities, with the bonus of being so close to the CBD.

    Being Moonah's neighbour, West Moonah benefits from all those things too.

    Good buying in these suburbs can be achieved now, says Zubin, with rental returns of up tosix per cent on offer.

    View Property For Sale In West Moonah

    Mornington, TAS

    Distance from Greater Hobart GPO: 7 kilometres

    Property type: House

    Median house price: $267,500

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    Weekly median advertised rent: $315

    Gross rental yield: 6.1%

    Population: 2134

    Proportion of rented properties in the suburb: 30.6%

    Proportion of houses: 90.6%

    It's fair to say that Mornington and its neighbour Warrane (also on this hotspots list), onHobart's eastern shore, are "up and coming suburbs", says Taplin.

    Mornington has a "mix-match" of property, including light industrial, modern residential andsome ex-Housing Commission homes, notes Taplin.

    While the Tasmanian market across the board has slowed at the moment, he says the suburbhas the fundamentals necessary for long-term growth.

    It's affordable, especially in comparison to nearby waterfront suburbs; the majority ofhousing is now privately owned; it's close to Rosny Park, where many commercial servicesare located, including Tasmania's largest shopping centre Eastlands; it's close to schools; andwell serviced by public transport.

    Just like neighbouring Warrane, Mornington will also benefit from major retail projects(including a direct factory outlet) planned for the Cambridge area, further east near theHobart airport.

    View Property For Sale In Mornington

    Warrane, TAS

    Distance from Greater Hobart GPO: 5 kilometres

    Property type: House

    Median house price: $240,000

    Weekly median advertised rent: $275

    Gross rental yield: 6%

    Population: 2194

    Proportion of rented properties in the suburb: 43.4%

    Proportion of houses: 83.3%

    Situated on Hobart's eastern shore, Warrane is an ex-Housing Commission area and has beengentrified over the past 10 to 15 years, says TPC Valuers director Damien Taplin, and withredevelopment and a property boom, prices have been driven up.

    It's still affordable though, especially compared to surrounding waterfront suburbs such asBellerive, Rosny and Howrah.

    Taplin says both Warrane and neighbouring Mornington (also on this hotspots list) have thefundamentals to perform well in the long term the majority of properties are privatelyowned now; they're very close to Eastlands Shopping Centre (Tasmania's biggest shopping

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    centre) and Rosny Park, where lots of business is located; schools are close by; and it's well-serviced by public transport. The two suburbs are also expected to benefit from major retail

    projects planned for the Cambridge area, further east near the Hobart airport.

    View Property For Sale In Warrane

    ACT

    Dickson, ACT

    Distance from Canberra GPO: 5 kilometres

    Property type: Unit

    Median unit price: $389,810

    Weekly median advertised rent: SNR

    Gross rental yield: SNR

    Population: 1947Proportion of rented properties in the suburb: 43.9%

    Proportion of units: 19.9%

    Location is the big plus for the inner city suburb of Dickson, says Angus Howell of HerronTodd White.

    It's situated just five kilometres north of Canberra's CBD and it's also close to tertiaryinstitutions such as the Australian National University and the University of Canberra, as wellas having a reasonably sized shopping centre within its boundaries.

    "Those normal drivers that you say you need for a property to perform are there - it's in acentral spot, there are good services and good schools, and people want to live there," Howellsays.

    "It's got those factors that people would look for, and it's an affordable option close to the city."

    Howell believes property prices in a suburb like Dickson "will always grow over time".

    View Property For Sale In Dickson

    NORTHERN TERRITORY

    Parap, NT

    Distance from Darwin GPO: 3 kilometres

    Property type: Unit

    Median unit price: $397,000

    Weekly median advertised rent: $420

    Gross rental yield: 5.5%

    Population: 1803Proportion of rented properties in the suburb: 45.5%

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    Proportion of units: 33.8%

    Being just one of a handful of suburbs close to the Darwin CBD, situated on a peninsula,Parap is a sought-after area.

    Parap's an area that's "moving ahead", says Tod Peterson of Peterson's Property Search. It'ssituated next to the desirable Stuart Park, he says, and both areas are increasing their officeand retail space. Nearby amenity also includes the well-known Parap Village shopping centreand markets.

    There are two distinct markets when it comes to units in Parap, says Terry Roth of HerronTodd White, and the stock that's under $400,000 is likely to be pre-1980, built either beforeCyclone Tracy struck and devastated Darwin in 1974, or just after. Typically, this housinglooks tired and buyers will need to spend some money renovating to increase the rentalreturn. The other unit stock in Parap, notes Roth, is that which has been built in the past threeor four years and is priced well over the median, in the late $400,000s or early $500,000s.

    View Property For Sale In Parap

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