How to Secure a Quality, Safe Area in Advance?

How do you lock in a quality area?

The successful hosting of the G20 Summit, the Asia Pacific Cities Summit and the 2016 World Science Festival, along with the upcoming 2018 Commonwealth Games and the strong bid for the 2032 Summer Olympics, will all inject further energy into this world-class emerging city.

As Australia's third-largest city and one of the fastest-growing cities in the world, Brisbane sits at the heart of a region set to receive major government investment. Queensland's Infrastructure Plan 2011–2031 shows that the government will invest A$134.2 billion in infrastructure across South East Queensland, centred on Brisbane, 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

Brisbane's affordable house prices are drawing an increasing number of local and overseas buyers. With Teneriffe's median exceeding A$1.9M leading 17 suburbs — including South Brisbane, New Farm and Hamilton — past the million-dollar median mark, more and more homebuyers and investors are asking: how do you lock in a quality area ahead of time?

1. Establish the basics: population, employment and more

Put simply, this means getting to know the true population of the area you're interested in — its age and household structure, income levels, current employment and job opportunities, and so on. Gather as much data as you can. If circumstances allow, arrange a trip to the city to get a feel for the employment and commercial landscape and gain a deeper understanding of the area.

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

Understand property values in the area. You can assess an area through data such as auction rates, clearance rates, rental yields and rental vacancy rates. It's worth noting that comparing prices in neighbouring areas can help you identify commonality and scarcity. Just as CBD properties, waterfront properties and homes in sought-after school catchments are enduring drivers of capital growth.

3. Understand the real supply-and-demand picture

Due to the rising numbers of migrants and international students, 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 scarcer while demand keeps growing. Look at an area's population growth and migration trends, and use annual rental yields to gauge how hot the area is. If an area already has abundant job opportunities, it's worth watching and buying into, even if it's a newly developing suburb. This is because jobs determine where people live; in a sense, the more crowded a place is, the higher its house prices, and the more secure its future capital growth and rents.

4. Target major infrastructure or upcoming landmark developments

It's 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 up house prices.

Large-scale government planning is also an excellent indicator, because a city's development cannot happen without it — and the government focuses not on changes over a few months or a year, but on the far longer term. Areas that the government is heavily developing — such as train and bus stations, large shopping centres, leisure and entertainment venues, and technology parks — are often the first to see house prices rise, for one simple reason: convenience. So the earlier we investors learn of these major plans and foresee an area's future development, the more secure our investment returns.

In summary  Objective, up-to-date data and accurate insight into government planning can all be obtained from property investment professionals. Property investment is not gambling — don't expect to buy at the absolute bottom and sell at the absolute top. Investing is not speculation; investing is a science, and the right choice often matters more than sheer effort!

How do you choose a safe area?

In Brisbane, whether buying to live in or to invest, the first factor to consider is likewise safety, followed by convenience and other factors. Below we explain how to choose a safe area.

1. Choose a newly planned area with better security

Newly planned areas often attract substantial government and commercial investment, which to a certain extent draws in more employment and families looking to upgrade their homes, resulting in a higher-quality community structure.

2. Choose a community with advanced security systems

New apartment, townhouse and some detached house projects come with excellent 24-hour security systems, including audiovisual equipment, parking and visitor access systems, and 24-hour property management. Compared with houses in some more remote areas and some older homes, this goes a long way towards ensuring residents' safety. This is especially true for new migrants and families with children, who should place living safety at the very top of their property selection criteria.

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

Such areas are usually home to long-term residents, particularly office workers and higher earners, which directly ensures the calibre of the community's residents and, in turn, its stability and level of safety.