If you’re looking for a house price boom in the next 12 months, your best bet would be to look in certain suburbs in Western Australia and South Australia.
However, if you’re playing a longer waiting game, there are a few hotspots in NSW, Victoria and Queensland home buyers should look in.
According to analysis by SuburbGrowth.com.au, there are 10 key suburbs in Australia where house prices are set to grow by $194,000 or more in three years.
The suburb that will see the greatest price growth by 2022 is Balaclava, Melbourne, which is tipped to increase by 30.3 per cent – or $324,711.
“The charms of Balaclava are well-known given its inner-city location as well access to St Kilda and Port Phillip Bay, which is why it has appeared a number of times in our growth forecasts this year,” said SuburbGrowth.com.au parent company SRP Group director of research Jeremy Sheppard.
In the next three years, the median house price of a Balaclava home will hit $1,072,000.
A close second is Narraweena in Sydney, which actually tops the list when it comes to growth by dollar value: here, a 29.7 per cent rise in property price would see an added $386,387 in house value.
“The research forecasts a $386,000 change in its median house price, so it would be wise to not delay if you’re interested in buying there anytime soon,” he said.
NSW’s Helensburgh, halfway between Sydney and Wollongong, came in third place with growth forecasted to hit 28.6 per cent across three years.
“Helensburgh’s location as well as affordability compared to Sydney are just some of the reasons why this suburb is poised for growth,” said Sheppard.
Adelaide’s Fullarton sat at fourth place with house prices tipped to increase by 28 per cent, or $255,000, and Geelong’s St Albans Park at fifth place, which is expected to see 27.5 per cent growth or nearly $110,000.
Charnwood (ACT), Waratah (NSW), Currimundi (QLD), Grange (QLD) and Colonel Light Gardens (SA) round out the top 10.
Here’s a look at the top 10 suburbs set for the most capital growth:
Sheppard said the analysis used 17 different market variables to determine where future property price growth would be.
“The research highlights that each major region has suburbs with price potential, regardless of what the market cycle is doing at the time,” he said.
“These suburbs all have a number of desirable features, however, one of the main reasons why house prices are forecast to grow is an imbalance of demand to supply.
“The thing is, even if prices end up only climbing by half as much as predicted, such is the nature of forecasting, it’s still a great return on investment over a short period of time.”
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