We’re pleased to announce Superannuation Property’s annual growth results since our commencement in 2012 are now available.

Taking into account all of the property locations we’ve recommended to our clients, each project has, on average, grown by 5.74% per year every year since we recommended it [1].

As detailed in the table below, some investment locations have achieved average annual growth as high as 13.8%, and cumulative returns of 27.6%!

superannuation-property-annual-growth-results-2016

Interestingly, a common factor contributed to the positive property investment results for each of the highest performing areas.

Our property economist identified these areas pre-boom, and they all have the benefit of major infrastructure projects to contribute to their desirability.

Highest performing property investment locations

The top 3 performers in the Queensland market were the suburb of Kedron in Brisbane’s northside, the well-established city of Toowoomba, 2.5 hours west of Brisbane, and the Sunshine Coast, 1.5 hours north of Brisbane.

Kedron

Kedron’s recent growth has been driven by the completion of the $10 billion TransApex network in 2014. This reduced travel times between Kedron, the CBD and Australia TradeCoast to under 15 minutes in peak hour traffic, significantly increasing the suburb’s desirability to the 220,000 people currently employed within the precincts.

The suburb’s connectivity to the QUT Kelvin Grove and Gardens Point campuses (via the Northern Busway and TransApex road system) makes it an attractive option for the 30,000+ students in these areas. Finally, the suburb’s proximity to Chermside will allow it to benefit from the 6,000 additional jobs to be created in the suburb over the next 15 years.

Toowoomba

The Toowoomba region (including Mt Kynoch and North Toowoomba) is set to continue its recent economic growth, with over $10 billion of infrastructure and employment generating projects planned, or approved to begin over the next five years. Of this, over $3 billion in projects are currently underway, which will primarily impact infrastructure, mining, energy, property and construction.

There is an additional $3.95 billion of further projects in the same industries undergoing planning or approval, ensuring investment in the region will continue into the future, creating jobs and improving accessibility. Finally, a total of $3 billion in proposed infrastructure projects brings the region’s total proposed investment to over $10 billion.

The Sunshine Coast

The Sunshine Coast is projected to be one of Queensland’s most active regions over the next 12 to 24 months, with over $16 billion worth of investment in infrastructure projects, residential developments and upgrade projects underway or upcoming.

The population of the Sunshine Coast’s Sippy Downs is currently 10,000, and is projected to grow by more than 40% by 2031. Over two thirds are younger than 45, reflecting a high concentration of students, young families and young professionals.

Tight vacancy rates in the area indicate high demand for rentals. This trend is expected to continue as the development of the Sippy Downs Town Centre creates a further 2,300 full time jobs, and entices an influx of students and young professionals eager to rent.

Summary

The results show the value in taking into account property economics advice and data before investing.

We’re always educating our clients on the importance of buying an investment property based on sound economic research. If you work with solid data for your investment decisions, you’re more likely to understand the potential for growth in the future.

Superannuation Property’s property research committee is comprised of some of the industry’s leading property economists and specialists. Our team performs the due diligence that clients often simply don’t have the time or means to access, and our property economists perform exhaustive research before recommending any projects or locations to clients.

Our research comes from a myriad of sources including Hotspotting, various Real Estate Institutes, Australian Property Monitors, Property Council Of Australia, Australian Bureau of Statistics, Reserve Bank of Australia, Real Estate.com, Domain, Urban Development Institute Of Australia, local authorities and councils, Price Finder, RP Data, Infrastructure Plans, and state governments.

Would you like to find out how you can invest in property within these areas with your Super? Contact us for a free, no obligation consultation to find out what your options are.


[1] Past performance is not indicative of future results. Data was sourced from: SQM Research  | Australia Property Monitors – APM Pricefinder | Residex.