Interesting article in yesterday's FR by George Liondis, on the state of the Aust property market. He pinpoints six pockets of potential around the country: 1. NT- Katherine 9% return for houses 7.5% for units House prices risen more than 12% in past yr 2. QLD- Southern suburbs, Brisbane Low vacancy rates in some areas of 1.5% 5.8% return for houses 6.4% for units 3. WA- Pilbara region Boom in resource sector affecting market Acute rental shortage Returns of 10%+ not uncommon 4. VIC- Melb inner city Low vacancy rates Flat market Investors buying- prices at more realistic levels 5. NSW- Northern beaches 5.8% return for units Cracks of opportunity appearing 6. SA- northern suburbs, Adelaide Elizabeth: 3 bd maisonette for around $100K 7% return for houses in this suburb WA is leading the states as far as booms go, with far western mining towns offering the biggest cg rates over the past yr. Examples given include Quindalup, Coolbinia, Ascot and Newman. There's a general warning about rushing in to buy, however, as prices could fall just as quickly as they've risen, if the thriving resource boom suddenly turns to dust.