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It is expected that the Australian real estate investing market will continue to grow in the near future, however, the rate of growth is expected to slow in NSW and Western Australia where the markets are expected to correct themselves.

Although, some regional areas of NSW such as the Newcastle / HunterValley area will probably continue to grow at a steady rate and Western Australia is still experiencing a high demand which is largely dependent on the resources boom.

Queensland, particularly South East Queensland, is expected to maintain strong capital growth in the residential property market as a result of continued migration from other states. However, rental yields are not expected to increase substantially despite low vacancy rates.

Therefore, Australian real estate investing in Queensland in the future should be focused on long term capital gain rather than the benefit of rental returns. Brisbane is expected to continue to grow rapidly with more than a thousand people relocating there every week and there is no indication that population growth in the Gold Coast is about to slow down. Continued growth in the residential sector is also a predictor of the increased demand for goods and services and therefore the continued upswing in the commercial sector.

This suggests that commercial investment in the south east of Queensland may also be a profitable consideration for those considering Australian real estate investing.

The South Australian property market still has a lot of room to move. Unlike the sharp property increases experienced in N.S.W., Victoria, Queensland and Western Australia, South Australia has maintained a steady capital growth in its residential property markets. It is comparatively affordable for an investor to enter and offers reasonable rental returns. It also offers steady long term growth for Australian real estate investing.

The Victorian residential property market is still vibrant and will likely offer people interested in Australian real estate investing continuing strong growth, as well as excellent rental yields, well into the future. Melbourne housing prices still have room to move despite having experienced significant capital gains and Melbourne has lower house prices for comparable properties in Sydney.

Tasmania offers the most affordable housing in Australia. Between 2003-2006, median house prices in Hobart rose by 103% and despite negative growth in the last quarter, analysts predict that the medium term prognosis for Australian real estate investing in Hobart is positive.

However, rental returns are low and the fact that high capital growth was experienced in Hobart between 2003-2006 is the result of prices being significantly lower than those in the rest of the country. Future capital gains are expected to be relatively modest.

Tasmania offers the advantage of low prices but this has to be counterbalanced by the expectation of lower returns on invest.

It is expected that the residential property market in Queensland will continue to grow and provide excellent returns for Australian real estate investing well into the future.

For long term capital growth, Queensland and Victoria offer the best property market environments for investors for the foreseeable future.

All the best in your Investing…downunder!

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