Residential Real Estate Development

Population growth in Australia, coupled with the aspiration of home ownership has resulted in increased residential development in all of Australia's major cities.

Much of this growth has been in coastal areas, with future growth expected to follow this trend. Indeed, one million Australians are expected to move to coastal locations in the next 15 years.

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Further Residential Real Estate Development

The major cities of Sydney, Melbourne, Brisbane and Canberra, are examined, as areas for significant investment.

Sydney has experienced rapid residential development, spreading north to Palm Beach, east to Blue Mountains and South towards Wollongong. Future residential growth is planned for the north-west and South along Sydney’s picturesque beaches, offering potential for investors and prospective home owners.

Further, Sydney offers a versatile range of residential development: inner city suburbs such as Paddington are full of narrow-fronted terrace houses with views of the city, the beach side suburbs have many Art Deco-style houses and the streets in older Suburbs such as Leichhardt are lined with small cottages.

As the demand for housing continues to outstrip supply both higher house prices and ongoing residential development will result. The government has predicted it will need 640 000 new homes to house the increased population.

Melbourne, has experienced rapid residential development since the 1990s. The suburbs have spread around and out from the bay, in particular towards the south-east. The Yarra River runs through the city and is being upgraded. The process of urban renewal has transformed parts of the city, for example the Southbank, from an eyesore to an attractive place to live, work and raise a family.

Houses in the inner suburbs are predominantly period-style homes, including Edwardian, Victorian cottages and villas. The high proportion of period style homes offers opportunities for investors and owner-occupiers to add value and increase their equity. As of March 2009 the median house price was $458 766.

The future planned growth of Melbourne is well documented. Future growth, as noted in Melbourne 2030, is to be transit oriented. Prospective investors should take note of this as such retail and transport hubs offer great potential.

Brisbane and its suburbs have radiated out from the centre towards Moreton Bay in the east, Ipswich in the west, the Sunshine Coast in the north. Most of the expensive suburbs are found near the city and the river.

The housing in Brisbane reflects its tropical climate. Many homes are high set. The classic timber framed, high set home is known as the 'Queenslander'. It is this type of house that provides both investors with the best opportunity to increase value and equity through renovations. The median house price in Brisbane is $467 390.

Like many other states future development in Brisbane will be transit orientated. Areas of principal development are referred to as Principal Activity Centres and Major Activity Centres. It is important to be aware of the centres and suburbs that have been targeted by the state government if you want to buy before others realise that these areas are going to be renewed and developed. 

The prime real estate zone in Canberra is known as the Parliamentary Triangle. The most expensive suburbs in Canberra are in the south, adjacent to parliament house. These include Forrest Deakin and Yarralumla. There are not many period style homes in Canberra, and the area is not as suited to renovations as says Brisbane. The median house price is $493 866

Canberra has a relatively transient demographic as many of the jobs are high paid public service positions offered on a contractual bases. These high salaries mean many tenants and homebuyers are able to pay high rents and mortgage repayments. This offers potential for investors who need reliable tenants. There is also the potential for business and commercial property investment.

An aspect of Canberra's estate that is unique to the city is that property is not bought under a freehold arrangement: it is purchased under a 99-year leasehold agreement with the government. Make sure you are aware of this conditions imposed by this type of lease before buying property.