New research identifies housing markets where prices are ‘set to soar’
Data from property marketing organisation Select Residential Property has listed the Australian suburbs that are best placed to experience a rise in property values across the next three years.
Queanbeyan or Toowoomba may be the best places to escape Australia’s housing downturn doom and gloom across the next couple of years, according to Select Residential Property.
Data from the company has identified the top suburbs with median house prices of about $500,000 which are tipped to grow in value by up to $150,000 by 2022.
The top-performing suburbs are located in the New South Wales, Queensland and South Australia, with the Queanbeyan suburb of Karabar forecast to see the biggest three-year growth at 28,80%, followed by Toowoomba, which is expected to have a rise of 23.9%.
At the other end of the scale, the suburbs were prices are likely to flat-tine are in the Northern Territory, Western Australia and Queensland.
The top five $500,000 housing markets over three years. Source: sellorhold.com.au
Select Residential Property Head of Research Jeremy Sheppard told WILLIAMS MEDIA the findings were based on current trends within the market.
“The growth in these areas will not come as a result of something falling into place, but more from things staying the way they are,” he said.
“Obviously, there could be a risk with the May federal election and changes to negative gearing, or the buyer’s tax could come into the market before those changes come into effect.
“However, if it is just status quo, then this is what we would expect to happen.”
Mr Sheppard said the bottom performing suburbs were all located in markets that had struggled over recent years, with the exception of Bahrs Scrub in the Logan region of Greater Brisbane.
“Perth and Darwin were significantly exposed to the resource sector and when that turned south during 2015, they experienced some pretty serious negative growth,” he said.
“Median house prices in Bahrs Scrub are likely to stagnate over the next three years, with forecast growth of only 4.9 per cent, which is partly due to there being ample land available for new supply in that market,” he said.
“Investors in suburbs with poor prospects of capital growth over the short- to medium-term would be wise to consider whether holding the property will end up costing them far more in opportunity costs and future capital growth than exit and entry expenses.”
Source: The Real Estate Conversation 9th April 2019 https://www.therealestateconversation.com.au/news/2019/04/09/new-research-identifies-housing-markets-where-prices-are-set-soar/1554775343