A new report has identified the Australian suburbs most popular with rookie property investors.
Millennial property millionaire Eddie Dilleen has hit 100 properties, a journey that’s taken 14 years.
According to fresh data from the Commonweath Bank, new property investors are zeroing in on the Sydney CBD, the Harbour City’s north west and Melbourne’s northern suburbs.
The Active Property Investors report said that the national age of property investors in Australia is 43, with the average loan size just over $500k.
“What we continue to see from many Aussies is the inclination to ‘rentvest’, buying property where they can afford and then renting where they wish to live,” CBA’s Executive General Manager Home buying Dr Michael Baumann said.
“Rentvesting gives Australians the chance to get their foot on the property ladder sooner rather than later and purchase a property in a lower cost area without having to give up the lifestyle they have become accustomed to when renting.”
Sydney’s Haymarket at the southern end of the Sydney CBD is a new investor hotspot. Picture: NCA NewsWire / Monique Harmer
The data also illustrates the shift towards investors becoming more comfortable with putting their money into properties further afield, not just in a home in the same suburb or close by areas they know best.
The CBA report pointed out that investors were the key driver of new lending for 2023, with lending growth to this segment reaching 18.5 per cent. Over the same period, lending to first home buyers grew by 13.2 per cent while lending to owner-occupiers grew by 3.4 per cent.
TOP SUBURBS FOR NEW PROPERTY INVESTMENT BUYS
The leading Australian postcodes for new property investment purchases in 2023, according to the CBA report were:
1 – 2000 (Sydney CBD, including Haymarket)
2 – 3029 (West Melbourne, including Hoppers Crossing)
3 – 2765 (North West Sydney, including Marsden Park)
4 – 3064 (North Melbourne, including Craigieburn)
5 – 2155 (North West Sydney, including Kellyville)
Parts of Sydney’s CBD have been viewed as under valued and under appreciated for years, part of its current appeal. It has also more recently become more popular with overseas buyers. The hype around and infrastructure investment in Sydney’s new Tech Central – a collection of six neighbourhoods anchored around Central Station, as the southern end of the CBD – has also made the area attractive to investors.
Melbourne’s Craigieburn is another suburb popular with new investors.
The precinct has been labelled the Silicon Valley of Australia and is expected to be finished in 2027.
The remaining top postcodes for new property investors are more affordable areas further out from each city’s CBD but still easily accessible by heavy rail and benefiting significantly from government infrastructure investment.
Marsden Park has enjoyed strong development since 2013, and like the northern suburbs of Melbourne is viewed an area with the possibility of rapid equity growth over the coming years.