If you’re interested in investing in an emerging Australian city, you have plenty of options. Australia is ripe for growth at the moment, having become a hotspot for industry and tourism. Foreign investment in Australia has been quite high in recent years, one major driver the property in a growth area. Which city should you choose? Don’t look only at one. There are five cities where your money could grow if you make the right choice and have the right timing. Here’s a guide to those five.
Brisbane’s been popping up on foreign investment hot lists for the last couple of years. The city is Australia’s closest to the Asian mainland, making it a popular destination for Asian tourists and a good market for foreign investors. People starting a business in Australia should recognize that the city’s growth is tied in part to the strength of Asian markets. That’s a good thing, for now, as those markets appear strong. Mandarin is the second most spoken language in homes in Brisbane, and more than a quarter of residents were born outside of Australia. Beyond that, the city has shown better than five-percent population growth. Many investors have noted, as well, that Brisbane has lower population density in its city center. This suggests, then, that Brisbane offers more room for future growth than some of its more crowded sister cities in Australia.
A migration consultant might still steer clients to Sydney, the old and trusty capital city that continues to experience growth. Sydney’s growth rate of 1.7-percent is lower than some other cities in Australia, but there’s still great potential for business owners and start-ups there. Investors in property in Sydney should note that the city’s continually strong economic indicators, including a better than average employment rate and the presence of strong international companies there.
Melbourne is Australia’s fastest growing city. Those who want funding to start a business will find ample opportunity as Melbourne expands not only upward in its city center, but also outward into its growing suburbs. Investors might show concern over a looming home market bubble, but the commercial market there remains strong. Some investors believe the average home price in Melbourne will reach $1 million at some point in the next five years. Still, the existing marketplace conditions should continue to support the growth of business, especially with economists suggesting that the city won’t fall into a debt crisis.
Some investors might be concerned that Perth’s growth has slowed. It is true that the city is growing more slowly now than it has in the past, with only 1.6-percent population growth over the last couple of years. Still, the market conditions are right for investment at the moment. The Perth market is not permanently down, and while many investors are focused on opportunities in Victoria and elsewhere, it’s possible for contrarian investors to target the opportunities in Perth. A strong presence of foreign workers and tourists in Perth supports the potential for commercial growth there.
Investors looking to profit from the next potential spike in real estate prices will be interested in the prospects of Canberra. Many have noted that its growth has not mirrored that of Sydney and other comparable cities. This could be a good thing for investors. While some markets in Australia have reached something close to a peak, Canberra appears to still have great growth potential. The city is experiencing a current outward expansion, with both residential and commercial real estate markets in the midst of a strong trajectory into the newly expanding suburbs.