Top bets: Suburbs where home prices are set to boom
This may be the only list where Qld is beaten by NSW this week, with new research naming 50 suburbs where prices are set to boom, with even SOO2 host Victoria turning up for this one.
This may be the only list where Qld is beaten by NSW this week, with new research naming 50 suburbs where prices are set to boom, with even SOO2 host Victoria turning up for this one.
The much anticipated Hotspotting Price Predictor Index (PPI) Winter Edition has been released, showing which suburbs are now ripe for price growth picks – thanks to steady increases in sales volumes over more than four consecutive quarters.
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Hotspotting director Terry Ryder found that despite record prices being set across many states already, there’s much more to come with New South Wales’ suburbs making up half the top 50 list (26), compared to just five in Queensland.
The Sunshine State was beaten on the price predictor list by Victoria which had 10 suburbs with even South Australia pipping Queensland with six. The only non-state player in the top 50 was the Australian Capital Territory with three superchargers.
Mr Ryder said “history shows that there is a correlation between sales volumes and price movements: the number of sales changes first and then prices react – with a time lag”.
“This is true whether markets are rising or falling and means that investors can buy ahead of price growth, by finding locations where sales volumes are rising but prices have not yet moved.”
Queensland, which has seen some of the strongest pandemic-led growth in prices in the country, saw just five suburbs make the top 50 this time – two of which are in the Greater Brisbane region and among the cheapest places to buy property in the vicinity at present.
Bahrs Scrub in Logan in the Greater Brisbane region’s south has seen sales ramping up steadily from 21 a quarter, to 26, 30, 37 and 36 most recently. Macleay Island in the Redlands, also in the region’s south, is seeing sales spike higher from 27, to 42, 53, 42 and 58. The rest of Queensland’s top 50 superchargers were outside the Greater Capital region, led by Highfields in Toowoomba which had 60 sales in the last quarter compared to 38 more than a year ago, with the other two being Kirkwood in Gladstone and Palmview on the Sunshine Coast.
But the real surge in prices is set to come out of New South Wales according to Hotspotting GM Tim Graham – a resurgence that started last year and continues solidly in 2024.
“In fact, we believe the top supercharged suburb in the nation is currently Surry Hills in Sydney City, which is indicative of a number of key trends in Australian real estate. Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon.”
Woolloomooloo in Sydney City is on the list, as are Woollahra suburbs Darling Point and Paddington, Bondi, Bayside’s Botany and Brighton-Le-Sands, as well as the inner west’s Annadale, Oxley Park in Penrith and Telopea in Parramatta. An array of suburbs up and down the state are set to see regional NSW prices boom including Wollongong’s Corrimal and Figtree, Forster on the Mid-Coast, Kurri Kurri in Cessnock, Nelson Bay in Port Stephens, four suburbs in Shoalhaven – Bomaderry, North Nowra, Sanctuary Point and Sussex Inlet, as well as Toormina in Coffs Harbour among others.
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Mr Ryder said the Victorian capital – host to SOO2 – also had several suburbs with rising sales activity and plenty of upside potential, including Deer Park. “The Melbourne market is poised for better price growth in 2024 than the previous two years. The median house price grew only 3pc in the 12 months to May, but sales activity revived late in 2023 and early 2024, boosted by a solid economy and high population growth.”
Their stars include Deer Park 20km from the CBD, Sydenham, Torquay, Ballarat East, Bacchus Marsh and Darley, Harkness, Kennington, Leopold and even St Leonards.
Mr Graham rated Adelaide among the most promising markets, with sales 8pc higher than a year ago, despite a 12pc annual decline in listings of properties for sale. Its six stars were Ascot Park, Flinders Park, Hove, Glenelg, Morphetville and Wallaroo.
Originally published as Top bets: Suburbs where home prices are set to boom