How to Secure a Quality, Safe Area in Advance

How to Identify Quality Areas?

As Australia's third-largest city, Brisbane is set to benefit from major government investment. According to Queensland's Infrastructure Plan 2011–2031, the government will invest A$134.2 billion in infrastructure across South East Queensland, with Brisbane at its core, including:

• Transport  A$97.7 billion

• Health  A$6.8 billion

• Energy  A$5.4 billion

• Community facilities  A$3.8 billion

• Education and training  A$3 billion

• Water  A$1.5 billion

• Projects already completed  A$1.6 billion

At present, Brisbane's affordable house prices are attracting a growing number of local and overseas buyers. Led by Teneriffe with a median price of over 1.9M, 17 areas including South Brisbane, New Farm and Hamilton have passed the million-dollar median mark. More and more homebuyers and investors are asking: how can I secure a quality area in advance?

1. Establish basic information such as population and employment

Put simply, this means finding out the true population of the area you are interested in, along with its age and household structure, income levels, current employment situation and job opportunities, and so on. Gather as much data as possible. Where circumstances allow, arrange a trip to the city to get a feel for the employment and business landscape and to gain a deeper understanding of the area.

2. The type, quantity and scarcity/median price of housing

Understand property values in the area. Specifically, you can assess an area using data such as auction rates, clearance rates, rental yields and rental vacancy rates. It is worth noting that by comparing prices in neighbouring areas you can identify what is common and what is scarce. CBD properties, waterfront properties and homes in good school catchments are all common factors that drive value.

3. Understand the true supply and demand dynamics

As the numbers of migrants and international students grow, the number of people actually living in Australia each year far exceeds the census figures. An area's supply-and-demand ratio is a key driver of price growth. Clearly, land is becoming increasingly scarce while demand continues to rise. Look at an area's population growth and migration trends, and use the annual rental yield to gauge how strong the area is. If an area already offers plenty of job opportunities, then even a newly developing area is worth watching and considering, because jobs determine where people live—in a sense, the more crowded a place, the higher its house prices.

4. Target major infrastructure or upcoming significant developments

It is well known that after the Sydney 2000 Olympics and the Beijing 2008 Olympics, house prices in both cities surged, including in surrounding areas. This clearly demonstrates how major events drive property prices.

Major government plans are also a very good indicator, because a city's development is inseparable from government planning, and the government's focus is not on changes over a few months or a single year, but on the longer term. The areas the government plans heavily—such as metro and bus stations, large shopping centres, cultural and leisure venues, and technology parks—are often the first to see price rises, for one simple reason: convenience. The sooner investors learn of these major plans, the better they can understand an area's direction of development.

In summary  objective, timely data and precise government planning can all be obtained from property investment professionals. Property investment is not gambling—do not expect to buy at the very bottom and sell at the very top. Investing is not speculating; investing is a science, and the right choices often matter more than hard work!

How to Choose a Safe Area?

In Brisbane, whether buying to live in or to invest, the first factor to consider is likewise safety, followed by factors such as convenience. Below is some guidance on how to choose a safe area.

1. Choose newly planned areas with better safety

Areas with new planning often attract substantial government and commercial investment, which to some extent draws in more employment and families looking to upgrade their property, thereby creating a higher-quality community structure.

2. Choose communities with advanced security systems

New apartment, townhouse and some standalone house developments are equipped with good 24-hour security systems, including audio-visual equipment, entry systems for parking and visitors, and 24-hour building management. Compared with houses in more remote areas and some older homes, these communities generally have more complete security arrangements. This is especially important for new migrants and families with children, who really need to place residential safety first when choosing a property.

3. Choose areas well served by nearby offices, commercial facilities and public amenities.

Residents in such areas are usually long-term residents, particularly office workers and higher-income earners, and population turnover is also relatively low.