Markets are cooling and the property market cycle is shifting in most parts of the country, so where are the best places to invest your hard-earned dollars next financial year?

Anna Porter, Suburbanite Principal, Valuer and Market Commentator suggests there are still markets around the country where you can get good bang for your buck.

“There’s no doubt buyers are more price sensitive today than they were 12 months ago which is reflected on the ground as we see auction clearance rates drop, less interest in the top end of town and an increase in time on the market,” shares Porter.

“However, in lieu of this we actually get some golden places to invest.”

Porter predicts South Australia as the best place to invest this new financial year.

“Adelaide is still moving full steam ahead with properties achieving record prices and multiple offers,” shares Porter.

“The rate rises and inflation has certainly not dampened this powerhouse of a market and investors should still be paying attention to Adelaide,”

“This market has high job creation, a diverse economy and comparative to other states it has affordability, with free standing houses within half hour of the CBD still trading sub $600,000.”

As for the larger capitals, Porter suggests taking a long-term view on property as the market cools.

“What we often see when the market does cool is it may wipe out the past 12 months of growth but when you look at the correlation, if Sydney had 20 per cent growth in the last 12 months, it’s only that 20 per cent that could potentially be wiped out,”

“So, Melbourne and Sydney might only see 10 – 20 per cent reductions and that’s a fairly normal correction to see.”

“If you take a long-term view on property, the market will inevitably shift gears again during that time, it typically does.”

The cooling market has not been shy of the capitals bar one region.

“Whilst the regional markets are starting to see the downturn filter through, home-buyers and investors alike are still turning their attention to the Sunny State of QLD,” shares Porter.

“On the ground, we’re seeing a lot of interest in Brisbane, Sunshine Coast & Gold Coast as the Olympic Games fuel longer term confidence in the market there.”

The Australian Property market will always see up’s and down’s but the property market in capital cities and satellite cities has always remained very resilient over the long term.

Porter shares even if there is a small correction, most home owners have so much equity built up in their properties that they won’t notice a slight correction – the key is to ensure you are managing your repayments amidst a rising interest rate and household cost environment.