Understanding regional property markets, with Simon Pressley – Ep. 50

For the latest episode of this bonus series of the property investing journey, Mike is joined once again by podcast favourite and property research guru, Simon Pressley, to talk about the dynamics of regional property markets and how they might differ from capital cities.

As Managing Director of Propertyology and only the third person to be inducted into the Australian real estate hall of fame in 2015, there’s no-one better to talk to the subject of regional investing and market influences. Simon spends his days studying the activity of Australian capital cities and each of 177 regional cities and towns, and he and his multi-award winning buyer’s agent team leverage this information to advise their clients on the best places to invest and why.

In this informative discussion, Mike and Simon explore the relative merits of investing in regional markets, and the biggest drivers that are likely to influence market direction, whether it’s population growth, economic diversity or other factors. Simon talks to the need to understand risk and how an area that is heavily weighted to one industry such as mining, is going to be a riskier option than a town or area that is much more diversified.

Simon explains why some of the best growth can be found outside the capital cities and provides clear examples of what to look for in choosing a property location, including types of amenity and available data. Simon also discusses how different announcements for areas can have an impact on their growth trajectory. Mike queries Simon on the impact of infrastructure projects such as those brought on by the SEQ 2032 Olympics, and Simon shares his thoughts on how to keep major events in perspective as far as they relate to real estate.

This episode is full of practical tips and clear examples of how various markets around Australia perform and why. Simon’s final piece of advice to diversify and not place “all of your eggs in one basket” is backed up a demonstrable knowledge of every town and region in the country. This is a discussion you can’t afford to miss.

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Mike is joined once again by podcast favourite and property research guru, Simon Pressley, to talk about the dynamics of regional property markets and how they might differ from capital cities. Mike and Simon explore the relative merits of investing in regional markets, and the biggest drivers that are likely to influence market direction, whether it’s population growth, economic diversity or other factors. Simon talks to the need to understand risk and how an area that is heavily weighted to one industry such as mining, is going to be a riskier option than a town or area that is much more diversified.

• Understanding what influences markets
• The importance of economic diversity
• The inherent risk of overexposure to a certain industry
• Capital cities versus regional towns
• Looking for announcements that will create jobs
• The impact of infrastructure spending

“It’s understanding what influences markets and it’s got nothing to do whether it’s a capital city or region” Simon 1:38

“The non-negotiable for us when we will not invest in a location has nothing to do with population size it’s to do with economic diversity” Simon 2:02

“The capital city – it’s just a term and that term has got nothing to do with the property market, the term is designed to say ‘well this is going to be the head office for our state’ ” Simon 7:42

“We talked about job creation being a big driver of a property market, we talk about diversity being an important thing for stability of the property market” Mike 12:15

“It’s not easy so for the DIY property investor who wants to find a shortcut there is no shortcut” Simon 12:56

“You should never invest in any location based on the announcement of an infrastructure project. You’ve gotta look at the sum of all those things we were talking about earlier, the relevance of infrastructure projects on a property market is the jobs that are created” Simon 18:00

Links mentioned

https://www.linkedin.com/in/simon-pressley-9b936a95/

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