Price growth is set to accelerate in the family-friendly Melbourne suburb of Hallam and the Western Australia holiday hotspot of Broome, according to new analysis.
The Well Home Loans Green Shoots Report has found the apartment market in Hallam, located 30km south east of Melbourne’s CBD, has the clearest signs strong price growth is on the horizon.
The Broome house market is expected to the second best performing suburb for price growth in 2022, followed by West Lakes units in South Australia and Mango Hill and Newtown units in Queensland.
The report showed the median price of a unit in Hallam is $505,000 and that is expected to rise as buyers turn to units as a more affordable option than houses in the suburb.
Harcourts Dandenong Director Daniel Farrugia said house prices had risen a lot more than units in the past 12 months.
“At the moment, buyer demand has really switched from houses to units,” Mr Farrugia said.
“Units and townhouses are getting a lot of interest from first home buyers because house prices have really gone up a bit.
“Stock always tends to be a little low in Hallam which tends to keep driving prices.”
Mr Farrugia said interest is continuing to increase after the holiday period.
“The numbers have really picked up over the past three or four weeks since the new year and we’re seeing five or six people getting through each home open, compared to maybe two or three,” he said.
Well Home Loans Green Shoots Report identified the Top 20 suburbs likely to experience strong growth in 2022.
The 20 suburbs chosen show the strongest combination of inventory levels decreasing over the past three months, days on market decreasing over the past three months and asking prices increasing over the past three months.
Well Home Loans Chief Executive Officer Scott Spencer said the analysis found locations right around the country that are set to grow.
“The top 20 list includes markets in seven different states and territories,” Mr Spencer said.
“Of the 20 locations, there are 11 metro and nine regional locations, as well as 11 house and nine unit markets.
“Median prices start as low as $165,000 for the Whyalla Norrie house market in regional South Australia and go no higher than $820,000 for the Burwood unit market in Melbourne.”
Mr Spencer said predicting house price growth is about looking at supply and demand.
“When you analyse leading indicators like inventory levels and days on market, you get a sense for whether market conditions are tilting towards sellers or buyers, and therefore whether prices are likely to rise or fall in the year ahead,” he said