In the Media

IN THE MEDIA

Trevor Dunkley

Wizards.Perth-based buyers’ agency Property

Property Wizards Buyers

Buyers agent Liz Sterzel

Property Wizards buyers agency Trevor Dunkley

Mr Dunkley

WESTERN SUBURBS WEEKLY

THE HILLS GAZETTE

THE SUNDAY TIMES

Wizards.Property

Managing director Ms Sterzel

Ms Sterzel’s

WEEKEND COURIER

THE WEST AUSTRALIAN

Buyers Agency buyers’ agent Trevor Dunkley.

Property WizardsMr Dunkley

Liz Sterzel, of Property Wizards

THE FREMANTLE GAZETTE

THE EASTERN REPORTERTHE SUNDAY TIMES

The managing director of PropertyWizards Buyer’s Agency, Liz Sterzel

Liz Sterzel

Wizards Buyers’ Agency buyers agent Trevor Dunkley

Property

Mr Dunkley

Trevor Dunkley, Property Wizards’ Buyer’s agency director.

buyers agency Property

Trevor Dunkley

Managing Director of Property Wizards Buyer’s Agent, Liz Sterzel

THE SUNDAY TIMES

Property WizardsTrevor Dunkley

Mr Dunkley

Tread warily, says advisor Trevor Dunkley

Property Wizards

Investment adviser, Liz Sterzel of Property Wizards.

Liz Sterzel Ms Sterzel

Ms Sterzel

Liz Sterzel

THE WEST AUSTRALIAN

THE SUNDAY TIMES

SUBIACO-BASED buyers agency Property Wizards

Managing director LizSterzel

Ms Sterzel

Ms Sterzel Ms Sterzel

Ms Sterzel

Liz Sterzel

Pro-perty Wizards

Property Wizards manag-ing director Liz Sterzel

buyers agency PropertyWizards.

Trevor Dunkley

PROPERTY Wizards managing director Liz Sterzel

AUSTRALIAN PROPERTY INVESTOR

Sterzel

Sterzel

Jon & Martin - buying and developing through Property Wizards

Liz Sterzel and Trevor Dunkley fromProperty Wizards

Agent managing director LizProperty Wizards Buyers

Sterzel

Property Wizards directorTrevor Dunkley

Mr Dunkley

TREVOR DUNKLEY

THE WEST AUSTRALIAN

THE JOONDALUP TIMES

Sterzel

Ms Sterzel

Agency managing director Liz Sterzel.Property Wizards Buyers’

Liz Sterzel.

Ms Sterzel

Ms Sterzel

agency Property Wizardsproperty buyer’s

THE STIRLING TIMES

Ms Sterzel Ms Sterzel

THE SUNDAY TIMES

Ms Sterzel

Property Wizards Buyer’sAgency Director Trevor Dunkley

Mr Dunkley

Mr Dunkley

Mr Dunkley

Mr Dunkley

JOONDALUP TIMES

Trevor Dunkley...look for boom proof properties.

WEALTH CREATOR MAGAZINE

Liz Sterzel, Property Wizards

director of Property Wizards.Liz Sterzel managing

Ms Sterzel

THE SUNDAY TIMES

Property Wizards buyers

agent Liz Sterzel

FINANCIAL REVIEW SMART INVESTOR

Property Wizards buyers’ agent LizSterzel

Mr Dunkley

Trevor Dunkley

Property Wizards,


Trevor Dunkley director of Property Wizards walks in Subi Centro.

Director Trevor DunkleyTrevor DunkleyDirector, Property Wizards Property Buyers’ Agents

Liz SterzelProperty Buyers’ AgentProperty Wizards

WESTERN SUBURBS WEEKLY THE SUNDAY TIMES

Dunkley

THE JOONDALUP TIMES

Property Wizards buyers

Sterzel

Ms Sterzel

Property Wizards’ client featured in Australian Property Investor magazine.

Liz Sterzel offers some sound advice.

agency managing director Liz

THE SUNDAY TIMES

Mr Dunkley

DunkleyTrevor

Trevor Dunkley, Buyers’ Agent, Property Wizards

Property Wizards Buyers agency managingdirector Liz Sterzel

YOUR INVESTMENT PROPERTY MAGAZINE

Sterzel.

Sterzel

buyers agent Liz Sterzel.Property Wizards


Liz SterzelProperty Wizards buyers agency managing director

Ms Sterzel

Buyers Agency managing director Liz Sterzel

JOONDALUP TIMES

Property Wizards buyers agent

Agent Trevor Dunkley

Trevor Dunkley.

DunkleyThe Wizards

propertywizards

Property Wizards Buyers Agency MD Liz Sterzel.

THE WEST AUSTRALIAN

The Property Wizards

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Property Wizards

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PropertyWizards director Trevor Dunkley

Director Trevor Dunkley

THE WEST AUSTRALIAN

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director Liz Sterzel

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Agent Property Wizards

THE SUNDAY TIMES

Ms Sterzel

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ROPERTY Wizardsbuyers’ agent Liz

Ms Sterzel

Liz Sterzel

THE SUNDAY TIMES

REIWA AWARDS NEWS

Buyer’s Agent of the YearTrevor Dunkley from Property Wizards

Property Wizards

Property Wizards

Mr Dunkleydirector Trevor Dunkley


REIWA AWARDS NIGHT

Property Wizards DirectorTrevor Dunkley

Mr Dunkley

PropertyWizards.

Mr Dunkley

www.wabusinessnews.com.au

director Liz Sterzelmanaging

Property Wizards Buyers Agency



Liz Sterzel Trevor Dunkley

THE WEST AUSTRALIAN

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managing director of PropertyWizards Liz Sterzel

Property Wizards managing directorLiz Sterzel

THE SUNDAY TIMES

Property Wizards buyers agent TrevorDunkley

Sterzel

Sterzel

Property Wizards managing director Liz


THE MORTGAGE MAGAZINE

THE SUNDAY TIMES

THE WEST AUSTRALIAN

Liz Sterzel managing director ofProperty Wizards

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THE SUNDAY TIMES

Property Wizards buyers Agency director Trevor Dunkley

Dunkley says.

Property Wizards buyers’ agent Liz Sterzel

Ms Sterzel

Ms Sterzel

Ms Sterzel

Trevor Dunkley

Liz Sterzel

THE SUNDAY TIMES WESTERN SUBURBS WEEKLY

Ms Sterzel

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managing director Liz Sterzel

Property Wizards

Property Wizards

Liz Sterzel

Property Wizards buyers’ agencyTrevor director Dunkley

Mr Dunkley

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THE WEST AUSTRALIAN

Ms Sterzel

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Property Wizards managing director Liz Sterzel

Ms Sterzel

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THE SUNDAY TIMES

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Property

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Wizards.

Property Wizards buyers’ Agency managing director Liz Sterzel.

Property Wizards managing director Liz Sterzel.

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THE HILLS GAZETTE COMMUNITY NEWS


Trevor DunkleyProperty Wizards buyers agency director

Property Wizards.Managing director Liz Sterzel

Property Wizards director Trevor

Trevor Dunkley.

expert Liz Sterzel from Property Wizards.

Liz Sterzel of Property Wizards.

Sterzel

Sterzel

Perth buyers agent

Ms Sterzel

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Perth Property Buyer’s consultancyProperty Wizards Director Trevor

Dunkley

Dunkley

Mr Dunkley

Mr Dunkley

Trevor DunkleyWizards director

Property


Ms Sterzel

Liz Sterzel

buyer’s agency Property Wizards,managing director of Perth

THE WEST AUSTRALIAN

Ms Sterzel

THE SUNDAY TIMES

Ms Sterzel

Ms Sterzel

Ms SterzelProperty Wizards buyers’ agent

Property Wizards buyers’Agency.

Property Wizards managingdirector and buyers’ agent LizSterzel

Liz Sterzel.

Ms Sterzel

THE SUNDAY TIMES

THE SUNDAY TIMES

managing director Liz SterzelProperty Wizards buyers’ agency

Sterzel

WANNEROO TIMES

Liz Sterzel

Ms Sterzel

Property Wizards Buyers Agent manag-ing director Liz Sterzel

Mr DunkleyMr Dunkley

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Agency Director Trevor Dunkley

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THE HILLS GAZETTETHE SUNDAY TIMES

Property Wizards’ director Trevor Dunkley

Mr Dunkley

THE SUNDAY TIMES

YOUR INVESTMENT PROPERTY MAGAZINE

PropertyWizards director Liz Sterzel.

Property Wizards

Ms Sterzel

Liz Sterzel managing directorProperty Wizards Buyers Agents andDevelopments

THE WEST AUSTRALIAN

Property Wizards’ clients getting ahead with a development property found by Property Wizards.

THE SUNDAY TIMES

Section | strapline

92 www.yipmag.com.au

WA PROPERTY

PerthhousesMedian value$480,000

Growth over 12 months-0.26%

Growth over three months to Feb 11-2.17%

Rent return4.13%

Rent amountFeb 11$380/week

Perth unitsMedian value$398,000

Growth over 12 months1.79%

Growth over three months to Feb 11-0.98%

Rent return4.72%

Rent amountFeb 11$360/weekSource: Residex, Feb 11

ACTNTTASSAWA

Anyone with half an interest in the economic health of Western Australia has no doubt have had an earful of predictions

that the state is due for another massive resources boom. Coupled with RBA governor Glenn Stevens touting the impending boom as perhaps the biggest in modern history, hitherto cautious property investors may well start jumping into the WA market with renewed vigour.

Stevens says the mining sector investment has already risen from an average of 2% of GDP over the past 25 years to 4% – exceeding peaks reached in the booms of the 1960s and 1980s.

And he believes the insatiable demand for resources from India and China could see investment rise by a further 1–2% over the next couple of years.

“If it occurs, this will be by far the largest such expenditure of a capital nature in the resources sector in Australia’s modern history,” he said at a recent conference on the resources boom.

Bearing these comments in mind, buyer’s agent and Property Wizard’s managing director Liz Sterzel believes property investors are becoming increasingly keen to board the resources gravy train before it picks up too much speed.

“There’s little doubt among investors that house prices will go up due to a growing WA workforce that will need homes to live in – and they want to get in before the masses do,” she says.

“What’s driving the local market at present is investor knowledge that WA’s economy is forecast to grow (at 4.75% for 2011 to 2012, according to the Department of Treasury and Finance) and that

the resources boom we’re now entering is of a magnitude never seen before.”

Perth’s still coolPutting predictions for wider economic growth aside for the time being, Real Estate Institute of WA (REIWA) president Alan Bourke explains that the property market in Perth is still slow, thanks to a slower rate of population growth, an oversupply of property on the market, and cautious buyers who are concerned about incurring debt in the current economic climate.

“There’s also the expectation with many buyers that prices may drop a little further, so some are waiting and biding their time,” he says.

But don’t wait too long, he warns, as the market seems to have bottomed out and this year could be the one that investors look back on and say “if only I’d bought in 2011”.

“It’s a buyer’s market with plenty of stock, plenty of keen sellers and good room for negotiation on a bargain. The REIWA expects the overall economy and housing sector to pick up in 2012, so for wise investors now’s a great time to strike,” says Bourke.

Sterzel, however, sees Perth as a bit of a mixed bag, with some areas representing a buyer’s market, others favouring sellers, and some struggling to find the market value.

“In some cases, we’re seeing a $50,000 to $60,000 difference in the price of similar properties,” she explains.

“This is a fantastic situation for switched-on investors who can grab a bargain, but it’s a trap for uneducated buyers.”

Overall, however, Sterzel likens the current buying situation to being a kid in a candy shop, with only a minority of players in the Perth property market having tasted the delicious opportunities it presents.

Hot suburbsThe suburbs that are seeing the most buyer activity, says Bourke, are the more affordable areas with good transport infrastructure and decent urban facilities such as shops and schools. He adds that, historically, the areas that have

Is the tide turning in WA?There are still some great buys to be made in WA’s slow moving market, and the mood among buyers is gradually turning from cautious to confident as predictions of a resource industry resurgence flood in

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Liz SterzelProperty Wizards managing director

Mr Dunkley

Perth Property Buyers Agent Property Wizards director TrevorDunkley

Sterzelmanaging director LizProperty Wizards

Ms Sterzel

Ms Sterzel

Property Wizardsmanaging director, LizSterzel

Sterzel

THE STIRLING TIMES

property buyers agencyProperty Wizards.

SOUTHERN GAZETTE

THE SUNDAY TIMES

Property WizardsBuyer’s Agency managing director Liz

Sterzel

Sterzel

Ms Sterzel


MANDURAH COASTAL NEWS


THE WEST AUSTRALIAN

THE WEST AUSTRALIAN

Trevor Dunkley

Mr Dunkley

Property Wizards

Mr Dunkley

Dunkley.Property Wizards Agent Trevor

Property Wizards

Mr Dunkley

Trevor Dunkley

Dunkley

Property WizardsBuyers Agents Trevor Dunkley.

Property Wizards Buyers Agency DirectorTrevor Dunkley

Mr Dunkley

Buyers’ agency Agent Trevor DunkleyProperty Wizards

Mr Dunkley

THE SUNDAY TIMES

PROPERTY WIZARDS’ CLIENT LANCE GELDEN

Liz Sterzel of PropertyWizards buyers agency.

Mr Dunkley


Property Wizards buyers agent Trevor

Dunkley

Mr Dunkley Property Wizards

Property Wizards Liz Sterzel

Trevor Dunkley

Dunkley

REIWA NEWS


director Trevor DunkleyProperty Wizards

Property Wizards

THE WEST AUSTRALIAN

Mr Dunkley

Mr Dunkley

Property Wizards director Trevor

Trevor Dunkley, of Property Wizards, said it was still possible to find a bargain.

Dunkley

Mr Dunkley

Mr Dunkley

PropertyWizards

Sterzel

Sterzel

SterzelProperty Wizards managing director Liz


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entertainment precincts. More than $300 million in projects

are completed and a further $465 million in development work

is under way. The Honeysuckle Development Corporation

claims $2 billion is being injected into the Hunter Region

economy over the 20-year life of the project, with more than

8000 jobs created.The project has restored historic buildings, built a bridge

and a bus interchange, and created parkland and promenades.

Corporation general manager Craig Norman says 1500 people

now call Honeysuckle home and that it’s the workplace for

2000 people. Pricewaterhouse Coopers, Telstra Country Wide

and numerous government departments have offices there.

While the Newcastle property market has slowed generally,

Honeysuckle has continued to thrive, having the advantage of

water frontage and also being part of the Newcastle CBD.

“There’s something about harbourside living that people

love,” says communications manager Charnelle Mondy.

“Harbourside dining is such a new thing in Newcastle and

people want to be part of the action. The apartments which

open out on to the promenade and the water are very popular

places to invest.”Guy Robinson of Robinson Property says virtually all the

residential product created in the development over the past

six years has sold out off-the plan. Apartments sold in 2000

and in 2001 are now achieving re-sales close to double their

original prices.

COOGEE AREA, WESTERN AUSTRALIACoogee, south of Fremantle, has been a good

performer recently – but an urban renewal

project planned for this noxious industry area

will take it to a new level. About 20 km south of the Perth CBD, Coogee has taken

some time to shrug off the stigma of nearby heavy industry.

But Coogee’s popularity is growing on the back of its coastal

setting and proximity to Fremantle. There’s been extensive

renovation or reconstruction of older housing stock in the

suburb.The new Port Coogee marina and residential development

will transform an eyesore area and boost nearby suburbs. The

proposed development will be on 55 coastal ha and about 20

ha of seabed on Cockburn Sound.The $700 million development by Australand will rehabilitate

the contaminated land and turn it into a residential estate with

700 houses, 330 marina berths and a small hotel. The first dirt

was turned on the site in February 2006 and the sales campaign

was due to start in October 2006.Price levels are already high in Coogee (the median is above

$600,000) – and the suburb ranks as one with a high degree

of consistency in value growth. The suburb’s price growth last

year, its five-year growth average and its 15-year average are all

15 per cent to 16 per cent. A further boost to the region is the upgrade to South Beach,

a little further north at South Fremantle. There’s likely to be

a ‘ripple effect’, boosting neighbouring suburbs like Hamilton

Hill and Spearwood. Both have median prices under $350,000

NOW! NEXT?

and have only recently started to show the kind of growth

evident in Perth generally.Hamilton Hill has ageing housing stock which is ripe for

refurbishment or duplex development. It also has a government-

sponsored ‘New Living’ urban renewal program happening.

Buyers agent Liz Sterzel of Property Wizards says Coogee,

Spearwood and Hamilton Hill all offer opportunities to investors.

“These areas are relatively close to the CBD, are undergoing

various government upgrades and refurbishments, are close

to the vibrant restaurant strip in Fremantle and will benefit

from the Perth to Mandurah rail line, which will cut travelling

times to the city,” Sterzel says.

WEST END, QUEENSLANDThe hallmark of a hotspot is having more than

one decisive influence. The West End precinct,

about 3 km from the Brisbane CBD, has four

‘creator categories’ working for it.

Lifestyle features, urban renewal and government decisions

are all immediate influences on this market, and once the

Brisbane residential market moves into a recovery phase, the

ripple effect will also impact on West End.This inner-city precinct sits beside South Brisbane – home

of the South Bank Parklands, the Queensland Cultural Centre

and the Brisbane Convention and Exhibition Centre.

West End is a “peninsula” suburb, with the Brisbane River

wrapping around it, so it’s affected by one of the greatest wealth

creators in real estate – water. Increasingly, riverfront land

occupied by industrial uses is being converted to residential.

PRDnationwide’s Tim Lawless says: “The Urban Renewal

Task Force is currently active in West End, providing direction

for the transformation of industrial land. The industrial precincts

along the river are being successfully redeveloped, as are key

sites around the suburb. Unit prices in the area are still relatively

low and we believe there’s room for upward movement.”

West End is also the subject of a traffic study to ease traffic

congestion (plans include the proposed Hale Street link to

connect South Brisbane/West End with Milton on the other

side of the river) and a Suburban Centre Improvement Project

by the Brisbane City Council is targeted on Boundary Road, a

popular destination for shopping and dining.

One sign of West End’s transformation as a more residential

precinct is plans for a $250 million “urban village” on the

border between South Bank (where major residential development

is well established) and West End.Also in this neighbourhood is a $550 million redevelopment

of the Southbank Institute complex and the Millennium Arts

Project, which will include a new Queensland Gallery of Modern

Art and a redevelopment of the State Library. The Pradella

Group has announced plans for an $80 million riverside unit

building in West End.Typical West End houses now cost around $500,000. Like

everywhere in southeast Queensland, West End saw strong

price growth after 2000. But the suburb hasn’t yet fulfilled its

potential and its growth rate has been lower than city averages.

And recently the median price has declined.

NOW! NEXT?

36 AUSTRALIAN PROPERTY INVESTOR OCTOBER 2006

WWW.APIMAGAZINE.COM.AU

COVERSTORY

How to find a hotspotbeforeeveryone else does to Perth and the area’s water

features. When sea change took holdaround Australia, Mandurah was a logical

target because of its natural environment andproximity to Perth. Its status was cemented through new

transport infrastructure, firstly through extensions to theKwinana Freeway and, soon, with the creation of a rail link(now being built down the centre of the freeway). Mandurahis today one of Australia’s headline hotspots. Salt, in hisPopulation Growth Report 2005, identified it as the number onegrowth area among Australia’s 70 largest cities. MandurahShire, about 75 km south of Perth, now has 60,000 citizens.

There are more living outside the shire, but still part of theMandurah metropolitan area. On that basis, Mandurah is nowa bigger city than Mackay and Rockhampton, having averaged6.5 per cent annual growth for 20 years. It has shot from beingAustralia’s 60th largest urban area in 1976 to the 23rd largestin 2004. It will soon be in the top 20.

The 2006 Property Outlook Report by Hegney Property Groupsays: “The sea change phenomenon sweeping Australia hasresulted in a population surge in coastal cities around thecountry. Mandurah is at the forefront of this growth.”

And Mandurah is projected to continue growing. In hisAustralia on the Move report for the Property Council of Australia(which predicted the number of dwellings required in Australia’s41 largest cities up to 2031), Salt ranked Mandurah numberone in the nation.

BALLINA TO YAMBAThe Ballina to Yamba stretch of the northernNew South Wales coastline will benefit fromtwo pieces of transport infrastructure:improvements to the Pacific Highway and the

NEXT?

Tugun Bypass on the Gold Coast. One of the keys to the successof this region is the population base in southeast Queensland.Many Gold Coast and Brisbane residents head south forweekends and holidays – and Salt says the southern extensionof the Pacific Motorway from Byron Bay to Ballina will lead tolifting values in Yamba and Ballina, while the planned Tugunbypass on the Gold Coast will add further impetus.

“People on the Gold Coast have holiday houses further southinto NSW,” Salt says.

“They’ll cascade down south, using the Tugun bypass, downthe Pacific Motorway, through to Ballina. There are a lot oftowns with potential down that way.”

Gold Coast valuer Garrie Love of CB Richard Ellis says theroad improvements are on the minds of property owners.

“Every time we do a valuation in northern NSW, they say wehave to take into account the Tugun bypass,” Love says. “Andthat’s understandable. Every time you see new roads whichsmooth out traffic flows, it benefits real estate.”

Love says the road improvements are “fabulous” for marketssuch as Yamba, Ballina and Lennox Heads.

“Property in Ballina and Yamba is already benefiting,” he says.Ballina Shire spreads 33 km along the NSW coastline 190

km south of Brisbane, with 93 per cent of it classified as Crownland and water-based activities the main recreational activities.The precinct saw strong price growth after 2000 but remainsquite affordable. The house sales market in the Greater Ballinaarea peaked in 2003 and sales last year were half those levels.Throughout Ballina Shire, the median house price is nowaround $370,000.

About 100 km further south is Yamba which is also affordable,especially after recent price reductions. The median houseprice peaked around $380,000 in mid-2004 but, according toAustralian Property Monitors (APM), the median in the year

WWW.APIMAGAZINE.COM.AU OCTOBER 2006 AUSTRALIAN PROPERTY INVESTOR 31

APL

Case studies in hotspot creationThe surest way to make money in real estate investment is topinpoint a hotspot before it becomes one. And investors cando that by studying areas which have recently been hotspots.

By understanding why a region became a property out-performer, investors can identify areas with similar qualitieswhich have yet to achieve full potential as real estate markets.

Mandurah in Western Australia has become one of the headlinegrowth areas of Australia. It didn’t happen by accident. And itdidn’t occur because of one overpowering influence. Like allhotspots, Mandurah had a combination of compelling factors.

Not only was it driven by the sea change phenomenon, butMandurah had a series of important lifestyle features luringbaby boomers and other buyers – specifically a rare combinationof water attractions. The icing on Mandurah’s real estate cakewas transport infrastructure: the extension south from Perthof the Kwinana Freeway and the State Government decisionto link the region to the capital with rail services.

Chinchilla in Queensland was an ugly duckling country townwith very cheap real estate which took off when major industrialand resources projects turned it into a boom town.

As with Mandurah, the best time to be buying property inChinchilla was two to three years ago.

But the key question is: what will be the next Chinchilla orthe next Mandurah? Finding the answer isn’t as hard as youmight think. Existing hotspots all have one or more of ten“creator categories” (see sidebar on page 34) working for them.The next hotspots will be areas with similar characteristicswhich haven’t yet reached their full price potential.

The following case studies in hotspot creation demonstratethe point.

Case study 1: sea change, lifestyle features,transport infrastructure

MANDURAH, WA“If there was a national beauty pageant for seachange locations, Mandurah would be rightup there among the finalists.” So saysdemographer Bernard Salt of KPMG.

Mandurah has become a standout growth area, both forpopulation and property values, because of a confluence ofmajor influences – including sea change, new transport links

NOW! NE

30 AUSTRALIAN PROPERTY INVESTOR OCTOBER 2006 WWW.APIMAGAZINE.COM.AU

COVERSTORY

Tick, tick… BOOMReal estate hotspots always happen for clear reasons – which areeasy to identify with hindsight. Successful investors are those whohave foresight – and know how to identify hotspots before theyhappen. Terry Ryder describes the hotspotting process, a techniquefor identifying markets destined to out-perform.

© Australian Property Investor magazine - www.apimagazine.com.au. Reproduced with permission.

How to find a hotspotbeforeeveryone else doesto Perth and the area’s water

features. When sea change took hold

around Australia, Mandurah was a logical

target because of its natural environment and

proximity to Perth. Its status was cemented through new

transport infrastructure, firstly through extensions to the

Kwinana Freeway and, soon, with the creation of a rail link

(now being built down the centre of the freeway). Mandurah

is today one of Australia’s headline hotspots. Salt, in his

Population Growth Report 2005, identified it as the number one

growth area among Australia’s 70 largest cities. Mandurah

Shire, about 75 km south of Perth, now has 60,000 citizens.

There are more living outside the shire, but still part of the

Mandurah metropolitan area. On that basis, Mandurah is now

a bigger city than Mackay and Rockhampton, having averaged

6.5 per cent annual growth for 20 years. It has shot from being

Australia’s 60th largest urban area in 1976 to the 23rd largest

in 2004. It will soon be in the top 20.The 2006 Property Outlook Report by Hegney Property Group

says: “The sea change phenomenon sweeping Australia has

resulted in a population surge in coastal cities around the

country. Mandurah is at the forefront of this growth.”

And Mandurah is projected to continue growing. In his

Australia on the Move report for the Property Council of Australia

(which predicted the number of dwellings required in Australia’s

41 largest cities up to 2031), Salt ranked Mandurah number

one in the nation.

BALLINA TO YAMBAThe Ballina to Yamba stretch of the northern

New South Wales coastline will benefit from

two pieces of transport infrastructure:

improvements to the Pacific Highway and the

NEXT?

Tugun Bypass on the Gold Coast. One of the keys to the success

of this region is the population base in southeast Queensland.

Many Gold Coast and Brisbane residents head south for

weekends and holidays – and Salt says the southern extension

of the Pacific Motorway from Byron Bay to Ballina will lead to

lifting values in Yamba and Ballina, while the planned Tugun

bypass on the Gold Coast will add further impetus.

“People on the Gold Coast have holiday houses further south

into NSW,” Salt says. “They’ll cascade down south, using the Tugun bypass, down

the Pacific Motorway, through to Ballina. There are a lot of

towns with potential down that way.”Gold Coast valuer Garrie Love of CB Richard Ellis says the

road improvements are on the minds of property owners.

“Every time we do a valuation in northern NSW, they say we

have to take into account the Tugun bypass,” Love says. “And

that’s understandable. Every time you see new roads which

smooth out traffic flows, it benefits real estate.”

Love says the road improvements are “fabulous” for markets

such as Yamba, Ballina and Lennox Heads.

“Property in Ballina and Yamba is already benefiting,” he says.

Ballina Shire spreads 33 km along the NSW coastline 190

km south of Brisbane, with 93 per cent of it classified as Crown

land and water-based activities the main recreational activities.

The precinct saw strong price growth after 2000 but remains

quite affordable. The house sales market in the Greater Ballina

area peaked in 2003 and sales last year were half those levels.

Throughout Ballina Shire, the median house price is now

around $370,000. About 100 km further south is Yamba which is also affordable,

especially after recent price reductions. The median house

price peaked around $380,000 in mid-2004 but, according to

Australian Property Monitors (APM), the median in the year


OCTOBER 2006 AUSTRALIAN PROPERTY INVESTOR 31

APL

Case studies in hotspot creationThe surest way to make money in real estate investment is to

pinpoint a hotspot before it becomes one. And investors can

do that by studying areas which have recently been hotspots.

By understanding why a region became a property out-

performer, investors can identify areas with similar qualities

which have yet to achieve full potential as real estate markets.

Mandurah in Western Australia has become one of the headline

growth areas of Australia. It didn’t happen by accident. And it

didn’t occur because of one overpowering influence. Like all

hotspots, Mandurah had a combination of compelling factors.

Not only was it driven by the sea change phenomenon, but

Mandurah had a series of important lifestyle features luring

baby boomers and other buyers – specifically a rare combination

of water attractions. The icing on Mandurah’s real estate cake

was transport infrastructure: the extension south from Perth

of the Kwinana Freeway and the State Government decision

to link the region to the capital with rail services.

Chinchilla in Queensland was an ugly duckling country town

with very cheap real estate which took off when major industrial

and resources projects turned it into a boom town.

As with Mandurah, the best time to be buying property in

Chinchilla was two to three years ago.But the key question is: what will be the next Chinchilla or

the next Mandurah? Finding the answer isn’t as hard as you

might think. Existing hotspots all have one or more of ten

“creator categories” (see sidebar on page 34) working for them.

The next hotspots will be areas with similar characteristics

which haven’t yet reached their full price potential.

The following case studies in hotspot creation demonstrate

the point.

Case study 1: sea change, lifestyle features,

transport infrastructureMANDURAH, WA“If there was a national beauty pageant for sea

change locations, Mandurah would be right

up there among the finalists.” So says

demographer Bernard Salt of KPMG.

Mandurah has become a standout growth area, both for

population and property values, because of a confluence of

major influences – including sea change, new transport links

NOW! NE30 AUSTRALIAN PROPERTY INVESTOR OCTOBER 2006


COVERSTORY

Tick, tick… BOOMReal estate hotspots always happen for clear reasons – which are

easy to identify with hindsight. Successful investors are those who

have foresight – and know how to identify hotspots before they

happen. Terry Ryder describes the hotspotting process, a technique

for identifying markets destined to out-perform.

© Australian Property Investor magazine - www.apimagazine.com.au. Reproduced with permission.

Buyers agent Liz Sterzel of Property Wizards

Sterzel says.

Property Wizards director TrevorDunkley

Liz Sterzel managing director of Property Wizards

Property Wizards

PropertyWizards

Ms Sterzel

Ms Sterzel

THE SUNDAY TIMES

THE WEST AUSTRALIAN

Sterzel

Ms Sterzel

Ms Sterzel


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