John McGrath is a power name in the real estate industry, and as in past years, he has released his latest analysis on the Australian Property Market.

In the past seven years on the east coast of Australia Mr McGrath says there has been five years of good growth (25 per cent to 75 per cent).

According to Mr McGrath there has been 18 months of correction (-5 per cent to -20 per cent) and a small rebound in auctions.

"Unfortunately, our friends in Perth and Darwin can’t report the same enjoyment but their turn will come very soon, in my opinion," said Mr McGrath.

McGrath obvservations include:

• Record low listings are being driven by transition costs and an uncertainty in the world economy.
• Continuing record low interest rates means it will be cheaper to borrow money and property could return to being the number one investment choice.
• Regional markets continue to grow in popularity courtesy of high metropolitan prices, baby boomer sea and treechangers and people being able to work virtually from anywhere in this new world.

Trends affecting the Australian property market include the house of the future, the modern commuter, a high rise to a low rise and loner living.

You can read the full report here.

John McGrath's best picks across Australia are listed below.

Sydney Suburb Picks 

Breakfast Point: This little riverside oasis has long been a favourite of mine and the new roadway infrastructure has just brought it ten minutes closer to the CBD yet still feels like you’re on holiday when you come home at night. 

Erskineville: Once a small working class industrial suburb, this little inner-city gem is now home to hipsters, executives and Baby Boomers all enjoying the close proximity to the CBD, cool cafes and now the revitalised Australian Technology Park next door. 

Sandringham: Not the beachside Victorian one – the beachside Sydney one! Close to the CBD, on the water, hidden away and affordable. Hard to believe but true. Buy a home or investment there and sit and wait. 

Castle Cove: This leafy lower north enclave is tightly held for a reason – once you live there you never want to leave. It’s a hidden gem only 12 minutes to town with some of the best mid-century architecture this great city has to offer. 

Kensington: In the same neighbourhood as Centennial Park, Prince of Wales Hospital and in close proximity to the University of NSW. Now easy access to the CBD with the new light rail this historic suburb is well under valued compared to some of her swanky neighbours. 

Melbourne Suburb Picks 

Kensington: Grand Victorian architecture and a 10ha park makes Kensington an aspirational suburb for young families. We’ve seen significant gentrification following the closure of the Newmarket Saleyards in 1984. Household incomes on the rise as residents’ occupations have shifted from manufacturing to professional services. The 4km commute to the CBD (or two train stops from Southern Cross) and an -11.6% softening in its median house price to $895,000 means there is plenty of upside left in this former working class suburb. 

Carnegie: Carnegie's multicultural ‘eat street’ on Koornang Road contributes to its high liveability score. It has public and catholic schools and trams that run directly to Melbourne University every 15 minutes. As part of the Victorian Government’s level crossing removal program, the rebuilt Carnegie train station reopened in 2018 with the trip to Melbourne Central reduced to 18 minutes. 

Watsonia: An often forgotten pocket of Melbourne’s north east due to its quiet and unassuming 1970s suburban streetscapes. Road commuters will have their travel time to the city cut by up to 35 minutes2 with the new North East Link connecting Greensborough Road to the Eastern Freeway. Affordability has improved with a fall in house prices of -18.3% to a median $720,000 in the 12 months to June 30, 2019. 

Cheltenham: Houses under $1 million coupled with the opening of Southland train station in 2017 makes Cheltenham, a go-to destination for savvy young buyers and investors. It offers great affordability compared to its neighbouring suburbs of Hampton and Beaumaris. Cheltenham has half a dozen schools and the most recent expansion of Westfield Southland has provided it with an abundance of retailers and eateries. 

1_tramway_pde_beaumaris.jpg

1 Tramway Pde, Beaumaris is on the market through McGrath, near Cheltenham, Victoria. Photo: McGrath

Upwey: Express trains make it an easy 50 minute commute from Upwey to Flinders station in Melbourne’s CBD for its growing population of professionals and tradies. The Dandenong Ranges’ outdoor lifestyle, community village atmosphere and affordable median house price of $687,000 makes Upwey attractive. There are hip cafes and restaurants, such as the organic and vegetarian café, Nevedya. The Fat Goat micropub is an advocate for the artisan craft beer and gin movement, reflective of the new local demographic.

Brisbane Suburb Picks & Gold Coast 

Gordon Park (Brisbane): With major public works including the construction of the Northern Busway and Airport Link tunnel now complete Gordon Park is an appealing option for buyers. The nearby Lutwyche City shopping centre is undergoing a $65 million revamp and it is a five minute drive to Australia’s second largest shopping centre, Westfield Chermside. 

Oxley (Brisbane): With plenty of homes priced under $500,000, the gentrifying older suburb of Oxley is an appealing alternative to its affluent neighbours of Sherwood and Corinda, where the median house price is above $800,000. Oxley was declared a Priority Development Area in FY19, with new homes and community facilities on the way, along with a growing café culture and redeveloped shopping precincts. With a median weekly rent of $450 for houses, up 5.9 per cent in the 12 months to May 31, 2019; and a median weekly rent of $390 for apartments holding steady, these returns are attractive to the savvy investor. 

Hendra (Brisbane): Sitting next to blue chip Ascot and Hamilton, Hendra’s turn is coming. Well located, Hendra will benefit from the redeveloped racecourse precinct and its new amenities. Land has been freed up for residential apartments, retail and commercial precincts, with the first major apartment tower in Mirvac’s 54,000 sqm development now under construction. While renovated homes backing onto the Eagle Farm Racecourse are achieving multi-million dollar sale prices, there are still plenty of original homes on large blocks in the $600,000s to $700,000s. 

Chermside West (Brisbane): There is a changing of the guard at Chermside West, with retirees leaving and young professionals moving in. With a median house price of $585,000, it has fewer new apartments than neighbouring Chermside and retains a family friendly suburban feel. Its transport links and close proximity to schools, hospitals and retail make it one to watch. 

Broadbeach Waters (Gold Coast): The bridesmaid to Broadbeach, Broadbeach Waters is benefitting from the ripple effect with a 15.2% rise in apartment prices to a median $501,250 in the 12 months to June 30, 2019 compared to just a 1.9 per cent gain to $530,000 in Broadbeach. Buyers might not get beachfront living but they can buy canal front just a few blocks away from the surf, with plenty of local restaurants, bike paths for families and a nearby rainforest walk.

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