Tasmania is leading the way for median house price rises in 2020 – one of several locations across the country tipped to record a rise of up to $200,000, according to new research.
The analysis by SuburbGrowth.com.au – part of the Select Residential Property Research Group (SRP) – identified the top 20 locations where median house prices are tipped to increase.
According to the results, 12 of the 20 top areas for forecast price growth are located in Sydney, but the number one location in 2020 is St Leonards in Launceston, Tasmania.
SRP Director of Research Jeremy Sheppard said the median house price in St Leonards is tipped to increase by 7.5 per cent this year, partially because of strong demand versus supply.
The suburb currently has a median house price of just $269,000.
“While it’s only located about 10 minutes from the centre of Launceston, St Leonards offers a mix of residential and semi-rural homes, with an affordable price tag to boot,” Mr Sheppard said.
The second-best location for forecast growth over the year is Bangor in the Sutherland Shire of Sydney.
While scoring the same percentage growth forecast, at 7.5 per cent, the suburb was pipped at the post for the top spot due to a slightly inferior demand to supply ratio.
However, the research found that Bangor’s median house price could increase by $76,000 over the year.
“About 28 kilometres south of the city, Bangor has a relatively affordable median house price, in Sydney terms, as well as being located near the Georges and Woronora rivers, which makes it an attractive proposition for both homebuyers and investors,” Mr Sheppard said.
Mr Sheppard said it was not surprising six of the top 10 were locations with median house prices under $1 million, given the increasing importance of housing affordability for buyers.
A case in point was the Canberra-Queanbeyan suburb of Crestwood, which came in at number three with forecast annual median house price growth of 7.3 per cent, he said.
Its median house price is currently $481,000 and could increase by $35,000 over the next year.
“Crestwood is located within an easy commute of Canberra however, its median house price is significantly more affordable than our nation’s capital,” Mr Sheppard said.
Number four for forecast median house price growth is Birkenhead in Adelaide, where median house prices are tipped to grow by about 7.3 per cent over the period.
The suburb’s median house price is $403,000, which could increase by $29,000, according to SuburbGrowth.com.au.
“Birkenhead is located on the Lefevre Peninsula so its borders feature reaches of the Port River,” Mr Sheppard said.
“On top of that, it is only about 14 kilometres from Adelaide’s city centre, making it an easy commute for homeowners or renters in the area.”
Rounding out the top five is Heathcote in Sydney, about 36 kilometres south of the city, which has forecast median house price growth of 7.1 per cent over the year.
Heathcote, which is also located in the Sutherland Shire, shares two of its borders with national parks but is also well-serviced by train services into the CBD.
The suburb’s median house price is $836,000, which is forecast to grow by about $60,000 over the next year, according to SuburbGrowth.com.au
Mr Sheppard said the research focused on suburbs within significant urban areas and houses rather than units.
“It’s important that this type of research only includes the most statistically reliable metrics,” he said.
“We include Market Cycle Timing, Ripple Effect Potential and Neighbour Price Balancing, as well as exclude locations that might have one-off demand spikes.”