The red hot suburbs where house prices could triple over next decade

If Queensland’s fastest growing suburbs continue their current trend of delivering the state’s biggest price rises, median prices will as much as triple in the hottest areas. SEE THE FULL LIST

Palm Beach – where a five bedroom waterfront home at 2/9 Diplacus Drive goes to auction at noon on Sunday Feb 26 – has been Qld’s strongest 10-year performer.

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If Queensland’s fastest growing suburbs continue their current trend of delivering the state’s biggest price rises, median prices will as much as triple in the hottest areas.

Latest PropTrack analysis has found that if prices grow at the same pace as they have in the past 10 years, the Gold and Sunshine Coasts would dominate top 10 performance lists.

PropTrack economist Angus Moore said “one of the trends across the pandemic was just how in demand the Gold and Sunshine Coasts were, including some of the really expensive blue chip areas like Mermaid Waters and Palm Beach.”

“Some of the structural factors that Covid-19 drove – in particular interstate migration to southeast Queensland, moving a bit further out of the inner city and people looking for a bit more space or to live near amenities like the beach – those trends are probably here to stay. I don’t know that we’ll necessarily see that shift unwind, but we may not see it accelerate even further from here.”

Palm Beach led 10-year house price trends in Qld, PropTrack found, rising 206 per cent – a trend which if continued could see its median triple to over $4.592m by 2032.

Houses in Coolum Beach on the Sunshine Coast were the second strongest performer – with a 10-year growth rate of 203 per cent that could take it to $3.912m in a decade if it keeps the same pace.

In a testament to the strength of the Noosa holiday home market, units in Noosa Heads delivered the third highest decade-long growth rate of 200 per cent, which could see its median price triple to $4.868m in the next 10 years on the current track.

Lifestyle factors are still driving up growth near Qld’s most popular beach zones like Palm Beach where a two bedder at 1/3 Tarni Avenue goes to auction 5pm Thursday Feb 23.

PropTrack economist Angus Moore

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Mr Moore said “the other thing that stands out is if you’re looking to make a million dollars, it helps to have a million to start with”.

“Obviously, relative returns matter and if you’re buying $100,000 home, you’re probably not going to make a million dollars versus if you’re buying a $3m or $4m home.”

He said the caveats to the data was that “past performance doesn’t necessarily predict future performance”.

“Particularly given how unusual 2021 and the pandemic period has been, there’s some risk extrapolating past trends.”

He said the data was “obviously not a forecast”: “It’s more like if prices grew at the same rate as they have in the past decade, what would happen?”

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