According to realestate.com.au analysis of CoreLogic trends over the last three years, the next suburbs to cross the million-dollar median line mark a large triangle stretching from Central Queensland through to the New South Wales border and the capital city.
For its sure bets to hit $1m median house prices in the next six months, REA backed Paddington in inner Brisbane, Castle Hill in Townsville and Tallebudgera in the southmost part of the Gold Coast.
The first to cross the line to $1m was Townsville’s premier suburb, Castle Hill, which was expected to hit a seven-digit median within the next two or so weeks.
Its current median price was $950,000 with the forecast that it would be $1,040,105 in November.
REA chief economist Nerida Conisbee said Townsville was starting to see a recovery from the mining downturn, which was “hitting premium suburbs first”.
“This will likely extend to other suburbs over the next few years,” she said.
Paddington in inner Brisbane, which was currently sitting at a median price just 2,000 below $1m, was expected to hit $1m in the new year. REA’s forecast was that Paddington would go to $1,000,452 in January.
“In Brisbane, a million dollars still means something and you can still buy premium property in inner areas like Paddington,” Ms Conisbee said.
The third area expected to go off – Tallebudgera on the NSW-Queensland border – was currently sitting on $917,750, with a million-dollar date set for January too. REA expected it to go to a median of $1,015,569 in about 10 weeks.
“We’re constantly seeing high levels of demand for Gold Coast – more people from Sydney are turning to Gold Coast for affordable lifestyle options.”
That’s all good news for Ben Ittensohn, 38, who has lived in Paddington since he was 21 and was now bringing up his children there.
“I think it will always be on a trajectory for growth because of its proximity to the city,” he said. “Relative to other cities like Melbourne and Sydney, it’s amazing we’re still talking about the million dollar mark.”
Mr Ittensohn has two properties in the suburb, both of which he planned to hold on to long-term.
“The investment property is a unit and units are not doing too well right now but we are looking long term. In the short term though it always rents really easy,” he said.
“We’d love to upgrade our house next year or in years to come. Does that mean we can stay in Paddington? I really hope so. Maybe we might have to push out to Bardon and other suburbs. We wouldn’t be able to afford to have three properties in Paddington.”
The best thing about the suburb, he said, was the stroll to Suncorp stadium. “I’m a big Broncos fan and being close to Suncorp is great. It’s very handy walking distance to the stadium.”
Originally Published: www.weeklytimesnow.com.au