1.
Australian Real Estate Surges as Investors Begin to Look Internationally by Marco Kozlowski
Accordingto real estate investmentguru,MarcoKozlowski,SydneyandMelbourne continue to
be the strongestreal estate marketsinAustralia. Despite the strongfocusonthese twocities,
Australia’smarketscontinuetodowell overall.
Despite quicklyrisingprices,Sydneycontinuestodowell due toitsstrong economy,growing
population,andlimitedsupply. Sydneyhasmostlyunobstructedborderswithroomtogrow,buteven
so,supplycannotkeepupwithdemand. The populationof Sydneyisexpected toreach6.1 millionby
2031 requiringover50,000 newresidenciestobe builteachyear. However,onlyaround45,000 homes
are expectedtobe builteachyear. The lack of obstructionstogrowthmeansthat Sydneyhasroomto
grow,preventingabubble situation,butwithnew constructionunable tokeepupwithdemand,the
value forSydneyreal estate shouldcontinue togrow.
AnalystLouisChristopherof SQMResearchstatesthatthe real estate marketinSydneyis
experiencinganunmatchedboom. Original forecastsof marketgrowthpredictedanincrease of 8 to 12
percent. Withfurthercalculations,SQMincreasedtheirforecastto12 to 15 percentprice increases,but
are nowevenconsideringthattobe toolow. Theirmost recentpredictionsforecastprice gainsto
increase past20 percent.
Realestate.com.auInvestorHotspotreleasedareportdetailingthe Sydneysuburbswiththe
highestlevelof investments. Parramattawasthe numberone suburbforinvesting. The othertopten
suburbson the list, inorderof rankingsecondto tenth,were PointCook,Carlton,Blacktown,Glen
Waverley,Penrith,Frankston,Auburn,Brunswick,andLiverpool.
WestSydneyisgarneringa large amountof interestdue tothe New SouthWalesgovernment
financingthe area. There isalsomajor residential growth,aswell asanalluringfocusonarts and
culture. A secondSydneyairportisplannedforthe westernareaof Sydneywhichwill furtherincrease
accessibilitytothe areaand promote the successof the economyinthe region. Additionallyanewrail
station,the NorthWestRail Link,and WestConnex will furtherpromote traffictothe region. As
Parramatta isone of the mostsuccessful suburbsinthe westernSydneyarea,itshouldcontinue tobe
an attractive area forreal estate investments.
While SydneyandMelbourne continue tobe the mostattractive real estate markets,new areas
aroundAustraliaare beginningtorise aspotential hotspots. Investorslookingtocash inon the thriving
Australianmarketwithout wantingtopayfor the increasingSydneyandMelbournepricesare now
expandingtheiroutlooktoinclude regional markets. Areasthathavinggrowingpopulations,awide
range of industries,andbetteraccessibilityare the bestbetsforinvestorslooking atregional markets.
Miningtownsare nolongerattractive investmentmarketsdue toadecline inironandcoal prices.
Larger citiesare saferinvestmentoptions,while smallerormore rural locationstendtostill be a greater
investmentrisk. A study bym3propertyrankedNewcastle,Barwon,Geelong,andBallaratasthe most
active regional marketsinAustralia.

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Brisbane andsurroundingareasof SydneyandMelbourne are alsoseeingnew interestas
investorsattempttocashin on the successof SydneyandMelbourne withoutpayingthe increasing
initial costs. Additionallythe Australiangovernmentininterestedinpromotinginvestorsbranchingout
to otherparts of the countryand are more lenienttoinvestorswhogoforreal estate outside Sydney
and Melbourne. Theywanttopromote the kindof cash in-flow thatSydneyandMelbourne are seeing
to as much of the country as possible.