Hot Spots - Past, Present or Future?

In property, the term "Hot Spot" describes an area with above-average capital growth.

Most property magazines or websites will make reference to "Hot Spots". However, journalists often focus on what is easy to report - the past! The article usually has a graph showing a nice sharp rise in value over the last 10 years. The author goes on to explain why it has grown so strongly. But how useful is this as a property investor?

It's quite useful to see how the property market has responded to activity in the area. We can use this to help test our assumptions of growth into the future. However, places where growth has already achieved record levels don't necessarily make them a good area to buy. In fact, they can often be the worst!!

To understand what makes a potential "Hot Spot", Morpheus Property takes an eagle-eyed view of Queensland. We consider factors which are likely to effect property value in the future, including:

- Infrastructure
- Development
- Changing demographics
- Government planning
- Commercial activity

At Morpheus Property, we assess the short and long term impacts of these projects and the likely impact they have on demand for property in the area.

For example, Brisbane Airport Corporation (BAC) are expanding the existing Brisbane Airport (in a NW direction), Airport Link tunnel has early works under way and Gateway Upgrade Project is making good progress. Combined, these projects require a great deal of accommodation. The accommodation isn't just for the many thousand workers and their families (who don't want to travel too far to work), but also includes commercial support (industrial, warehouses, storage, etc).

Gladstone is another area with more potential for growth. Some might say this area has already achieved strong growth, based on a large amount of mining activity in the area. However, Gladstone has many more mining projects in the pipeline (so to speak) and is about to experience strong growth on top of an strong performance over the last few years. In short, prior growth doesn't exclude an area from future growth, but there should be some rationale to support it.

Thinking about investing? Give us a call if you would like to talk to Morpheus Property about a project or area - 1300 727 586.

Yours in property!