Marinas and car parks regarded as alternative investments in Australia

A market in alternative property is emerging in Australia where those either wishing to take a risk or who simply want to invest in something different are looking at buying car parks and marinas.

They might even enjoy better returns this year than those who stick with traditional real estate, it is claimed.

With residential real estate and commercial property prices flattening out since January, alternative property investments have been powering ahead amid strong anecdotal demand.

However, it is difficult to find concrete figures illustrating the growth because these assets are not monitored like median house prices are for residential real estate.

'We have had a higher than normal number of inquiries about car parks and marinas,' said Geoff Blaze of Melbourne based property company Blaze and Jenkins.

'As far as car parks go, it is the land that is of interest. Investors are interested because they can see future possibilities with the land and they want to explore the chances of developing these sites in the future,' he added.

There seems little doubt that car parks can be a lucrative investment. But university lecturer and property book author Peter Koulizos said because the car park market was so small compared with the broader real estate market; it was difficult to get reliable figures for growth. 'On the positive side, car parks are pretty maintenance-free,' he said.

Mr Koulizos said some marina berths had 'increased exponentially' in price in recent years. Marina berths can now fetch as much as some houses, with prices for some new releases costing up to $500,000.

Real Estate Institute state president Robin Turner said the key issue when looking at alternative investments is whether or not there is scope to redevelop these assets in the future.

'You can't renovate a car park, or turn a marina berth into a block of flats at a later time unless there is a realistic chance of getting planning permission,' he warned.

Yes, real estate investment is about what might be done in the future with the land. But when buying a strata-titled asset you are buying a fixed type of investment with no hope of it changing,' he said.