Sydney is tipped to be the real estate boomtown of 2020 – dominating a list of 20 spots tipped to experience a house price spike.
Select Residential Property forecast the city would quickly return to price growth after a short-lived recent downturn.
It also identified areas in Melbourne, Adelaide, Hobart and Queanbeyan near Canberra that should surge in the coming 12 months.
The group’s research director Jeremy Sheppard said buyers were particularly interested in areas where prices had fallen after the market peaked in 2017.
‘Buyers are now looking at those prices in close proximity to the recent history and they’re thinking, ‘Well, gee, this is now good value for money’,’ he told Daily Mail Australia.
Sydney is tipped to be the real estate boomtown of 2020 – dominating a list of 20 spots tipped to experience a house price spike. Select Residential Property forecast the city would quickly return to price growth after a short-lived recent downturn. Loftus (pictured), in the south, was expected to see median house prices surge by 7.8 per cent in 2020 – a level well above the city’s 6.1 per cent growth pace for 2019
Loftus, in Sydney’s south, was expected to see median house prices surge by 7.8 per cent in 2020 – a level well above the city’s 6.1 per cent growth pace for 2019.
‘Auction clearance rates have been at 100 per cent for the last few months which is a clear indication of strong demand,’ the group said in a research note.
The suburb in the Sutherland Shire also has a ‘very low proportion of renters to owner-occupiers, less than 10 per cent’.
‘There are way too many people searching for property online compared to the number of properties available for sale,’ it said.
The suburb’s median house price of $889,000 is also well below Sydney’s median house price of $973,664, CoreLogic data showed.
Prices are set to increase in this area of southern Sydney, as it recovered from a record slump in median values, sparked by a crackdown on investor and interest-only loans.
‘We were looking at one million just two years ago,’ Mr Sheppard said.
Inner-city suburbs of Sydney also topped the list with harbourside Birchgrove, in the inner-west, and Paddington, in the east, both expected to enjoy 7.3 per cent growth rates this year.
These upmarket areas have median prices of $2.059million and $2.125million, respectively.
Sydney’s south took out three spots, with 7 per cent growth expected in Peakhurst Heights and Bangor, which have median prices of $1.006million and $1.015million.
Sydney’s northern beaches had five places on the list, with Narraweena (7 per cent), Davidson (7 per cent), North Manly (6.9 per cent), Collaroy Plateau (6.9 per cent) and North Narrabeen (6.6 per cent) making the grade.
Prices in these suburbs range from $1.355million to $1.886million by the beach at Manly.
Melbourne had two suburbs on the list with 7 per cent growth expected at North Warrandyte (pictured) in the city’s north-east and Balaclava in the south-east. Median houses stand at $903,000 and $1.183million, respectively, which are both above Melbourne’s mid-point of $778,649
Farther inland, Sydney’s north took out two spots, namely the neighbouring suburbs of Normanhurst (6.7 per cent) and Thornleigh (6.6 per cent), which have median prices of $1.132million and $1.110million.
Melbourne had two suburbs on the list with 7 per cent growth expected at North Warrandyte in the city’s north-east and Balaclava in the south-east.
Median houses stand at $903,000 and $1.183million, respectively, which are both above Melbourne’s mid-point of $778,649.
Queanbeyan, a southern New South Wales city bordering Canberra, had two suburbs tipped to boom: Crestwood (7 per cent) and Karabar (6.9 per cent).
Median house prices in these suburbs are $481,000 and $456,000 – putting them well below nearby Canberra’s $691,551.
Adelaide had two entrants on the list: Glenalta in the hills to the city’s south and Birkenhead in the port area in the north-west – with 6.6 per cent annual growth tipped for both areas.
Queanbeyan, a southern New South Wales city bordering Canberra, had two entrants – Crestwood (7 per cent) and Karabar (6.9 per cent). Median house prices in these suburbs are $481,000 and $456,000 – putting them well below nearby Canberra’s $691,551 (pictured is a house at Crestwood)
They had median prices of $520,000 and $403,000 – straddling either side of Adelaide’s equivalent value of $471,419.
Hobart took out one spot with Rosetta in the north predicted to see prices surge by 6.7 per cent from the existing median price of $423,000 – a level well below the Tasmanian capital’s mid-point of $506,395.
Select Residential Property urged investors seeking strong capital returns to avoid buying a unit.
‘Long-term units almost always come with a degree of oversupply risk since houses can be replaced with units and units can be built higher and higher,’ it said.
The forecasts for houses were based on demand exceeding supply and whether sellers had to offer discounts to secure a sale.
Adelaide had two entrants on the list: Glenalta (pictured) in the city’s south and Birkenead in the north-west – with 6.6 per cent annual growth tipped for both areas. They had median prices of $520,000 and $403,000 – straddling either side of Adelaide’s equivalent value of $471,419