A resurgence in some property markets in the capital over the past few months shows no signs of slowing down, but the real hotspots to look out for are not in Sydney and Melbourne.
Analysis by the property researcher Selection Residential Property’s suburbgrowth.com.au forecasting service has identified the regional locations for which a price increase of more than 20 percent is expected in the next few years.
And most of them have buy-in prices that are only a fraction of the suburbs of big cities, said SRP research director Jeremy Sheppard.
The list consists of places with a solid holiday market, such as Ballina on the north coast of New South Wales and the Sunshine Coast in Queensland.
But it’s locations that have fundamental growth data outside of the tourism sector, Sheppard said.
“While some of these places might be better known as vacation spots, they also have a significant local population – in some cases, hundreds of thousands of people live there all year round,” said Sheppard.
“This means that these markets have solid, growth-oriented fundamentals, including the economic principles of supply and demand that are pushing up price pressure on residential real estate.”
At the top of the list is East Ballina, for which Mr. Sheppard expects the average house price to rise by 28 percent in the next three years.
“Not only is East Ballina a coastal suburb, the region is south of Byron Bay and is also commuting to the Gold Coast,” he said.
This was followed by Bilambil Heights in the Tweed Heads region, from which he expects growth of 27 percent.
“The region is known for its wealth of natural beauty, which attracts millions of tourists every year,” said Sheppard.
“Suburbs like Bilambil Heights are also popular with residents because they are topographically close to the Gold Coast.”
Mr. Sheppard’s 2022 growth forecast also included Rosetta in Hobart (25 percent), Kuluin on the Sunshine Coast (25 percent) and Kiama south of Wollongong (24 percent).
“While tourists vacation in Kiama every year, residents can enjoy the myriad of attractions every day, including a number of popular surf spots. In addition, Wollongong is expected to become stronger in the coming years due to its location just 120 km south of Sydney. “
In the five fastest-growing suburbs, average property prices are currently between $ 431,000 and $ 825,000.
However, Mr. Sheppard’s list included a number of affordable locations, including Mildura with a median of $ 297,000 and a 22 percent growth forecast for three years.
The regional city of Grafton in New South Wales, with an average price of $ 318,000, is expected to grow 20 percent.
And Echuca in Victoria, where the median is $ 367,000, could increase its value by 20 percent, he said.
Mr. Sheppard’s analysis included 17 different market variables to predict growth over the next three years.