Five regions identified as prime for small-scale property development

A selection of regions – Moreton Bay, Ipswich, and the Gold Coast in Southeast Queensland, Northern New South Wales, and Geelong in regional Victoria – have been identified as promising locations for small-scale property development, with expectations of capital growth and increased rental yields, according to a recent analysis.

Michael Pell, managing director at Propell Property, noted that these regions are experiencing a shortage of housing supply, creating opportunities for investors to construct duplexes and benefit from potential capital gains.

“We are currently helping clients purchase land in every one of these locations, with many opting to construct two attached dwellings on two titles fairly quickly, which not only adds to rental stock but also increases the overall supply of housing in the area, too,” Pell said.

“Depending on the location, investors with budgets of between $800,000 and $2 million can successfully undertake this strategy, but it’s important for them to understand that it isn’t for novices – unless they work with people who have plenty of experience under their belts.”

The analysis outlines the following regions as top prospects for small development projects:

• Geelong, Victoria: Investors with budgets above $600,000 are encouraged to consider Geelong, which is currently at a low point in its market cycle. The city’s proximity to coastal destinations such as Torquay, Bells Beach, and Lorne, as well as its location an hour from Melbourne, are cited as factors driving demand. “Geelong offers the possibility of significant capital growth and strong cash flow well into the future,” Pell (pictured right) said.

• Gold Coast, Queensland: The Gold Coast continues to attract investors with budgets over $1.2 million. The region has experienced robust market conditions and is projected to see strong population growth over the next decade. Pell highlighted the area’s geographical constraints and potential changes to minimum lot sizes as factors supporting future development. “There is talk of lowering the minimum lot sizes, too, with investors currently buying good-sized lots of land, including corner blocks, for future duplex development,” he said.

• Ipswich, Queensland: Investors with budgets around $850,000 are looking to Ipswich, where significant infrastructure projects are under way and population growth is forecast to lead the state over the next 10 years. “Ipswich is to Brisbane what Parramatta was to Sydney in 2000, and we all know how much Western Sydney has skyrocketed since those times,” Pell said. “Western Brisbane is set to fundamentally change in the years ahead, with the smartest property buyers making their moves now.”

• Moreton Bay, Queensland: Moreton Bay is attracting interest from those with budgets of about $800,000 for standalone homes and up to $1.3 million for small developments. The area is expected to see continued population growth, which may drive further price increases. “Opportunities still exist in a number of pockets in the region, including Morayfield and Narangba,” Pell said.

• Northern New South Wales: Investors with budgets above $1 million are increasingly considering locations from north of Yamba to Kingscliff and Cabarita Beach. Supply of new housing has been limited, and the area is benefiting from migration out of Sydney, with buyers seeking lifestyle improvements and the ability to work remotely. “They are prioritising lifestyle and family time and these pristine coastal areas given them the opportunity to achieve both,” Pell said.

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