Property investors wondering where to put their money in 2016 should look to Hobart, Gold Coast and Melbourne – and avoid Perth, SQM Research’s Louis Christopher said.
“We believe that Melbourne will be the out-performer of the year, followed by the Gold Coast and Hobart. Each of these respective cities are benefiting from the lower Australian dollar,” he said.
Economic improvements led by the Tasmanian government and a falling unemployment rate has driven demand in the rental market in Hobart. Rents will grow 5 to 8 per cent next year as vacancies fall.
Gold Coast, another tourism exporter, is also strong and slightly ahead of Hobart in value, Mr Christopher said.