Five regions ripe for small development revealed

In a bid to capitalise on burgeoning market conditions, savvy investors are targeting five key regions across Australia for small property developments. According to a new analysis by Propell Property, Moreton Bay, Ipswich, and the Gold Coast in Southeast Queensland, alongside Northern New South Wales and Geelong in regional Victoria, are poised for future price growth, offering lucrative opportunities for capital growth and cash flow.

Michael Pell, Managing Director of Propell Property, highlighted the potential of these regions, noting the pressing need for increased housing supply. “We are currently helping clients purchase land in every one of these locations, with many opting to construct two attached dwellings on two titles fairly quickly, which not only adds to rental stock but also increases the overall supply of housing in the area, too,” Pell explained. He further emphasised that investors with budgets ranging from $800,000 to $2 million could successfully execute this strategy, provided they collaborate with experienced professionals.

Geelong, Regional Victoria

Pell pointed to Geelong as a prime location for investors with budgets above $600,000, describing it as an ideal spot for first-time or seasoned property investors. “Not only is Geelong currently at the bottom of its market cycle, but the region is right on the doorstep of desirable coastal locations such as Torquay, Bells Beach, and Lorne,” he said. Geelong’s proximity to Melbourne, just an hour away, coupled with robust demand from homebuyers and investors, makes it a hotbed for potential growth. “Geelong offers the possibility of significant capital growth and strong cash flow well into the future,” Pell added.

Gold Coast, Queensland

The Gold Coast, with its strong market conditions over recent years, is attracting investors with budgets over $1.2 million. Pell highlighted the region’s appeal, stating, “The Gold Coast has so much to offer, including incredibly strong projected population growth over the next 10 years.” He noted the strategic advantage of the Gold Coast’s geographical constraints, being land-locked by the hinterland and ocean. “There is talk of lowering the minimum lot sizes, too, with investors currently buying good-sized lots of land, including corner blocks, for future duplex development,” Pell said.

Ipswich, Queensland

For investors with budgets around $850,000, Ipswich in Greater Brisbane presents an enticing opportunity. Pell likened Ipswich’s potential to that of Parramatta in Sydney circa 2000. “Ipswich is to Brisbane what Parramatta was to Sydney in 2000, and we all know how much Western Sydney has skyrocketed since those times,” he remarked. The region’s forecast as the top location for population growth over the next decade, along with ongoing major infrastructure projects like the new train line into Ripley and the upgraded highway to Brisbane, positions Ipswich as a transformative investment area. “Western Brisbane is set to fundamentally change in the years ahead, with the smartest property buyers making their moves now,” Pell asserted.

Moreton Bay, Queensland

Investors eyeing standalone houses with budgets around $800,000, or those looking to construct small developments up to $1.3 million, are increasingly considering Moreton Bay. Pell cited the region’s strong population growth forecasts as a key driver of property market pressure. “We have been active in the Moreton Bay region for some time and have helped many clients build duplexes on blocks of land from about 500 square metres to 600 square metres,” he said. He also identified opportunities in areas like Morayfield and Narangba.

Northern New South Wales

Northern New South Wales is attracting investors with budgets above $1 million, particularly north of Yamba to Kingscliff and Cabarita Beach. Despite higher price points, Pell noted the region’s historical undersupply of new dwellings. “Sure, the price points are higher in this region, but the supply of new dwellings has generally been underwhelming for many years,” he explained. The shift of people moving out of Sydney for both economic and lifestyle reasons is further fueling demand. “These coastal communities are also benefiting from more people moving out of Sydney for property price considerations, but also because they can work from home,” Pell said, highlighting the appeal of prioritising lifestyle and family time in these pristine coastal areas.