Property values are back on the rise with median house prices tipped to soar as high as $200,000 in metropolitan and regional areas, according to new figures.
Select Residential Property Research Group has crunched the numbers to reveal the top 10 suburbs tipped for the highest price growth in 2020, where values are expected to rise by up to 7.5 per cent.
Sydney dominates the top 10 with five hotspots listed.
But it’s the Launceston suburb of St Leonards in regional Tasmania that leads the way with a 7.5 per cent hike forecast.
Bangor in Sydney’s south is second followed by Crestwood in the ACT, the Adelaide peninsula suburb of Birkenhead and Heathcoate in Sydney’s south.
Davidson on Sydney’s northern beaches is sixth followed by Booragul in Newcastle, Henson in Adelaide, Allambie Heights on Sydney’s northern beaches while beachside Bronte in the city’s east rounds out the top 10.
Located within a ten minute drive to Launceston’s CBD, St Leonards’ current median house price of $269,000, which is tipped to soar in 2020.
However Select Residential Property Research Group research director Jeremy Sheppard would steer well clear as an investor.
‘Firstly, there’s too much land that could be developed there. Although there could be excellent growth over the next year, there’s risk of supply escalating in the future to balance out with demand,’ he told the Urban Developer.
‘Although it may not happen in the next few years, long-term there’s potential for a problem.
‘Once demand does tear away, developers usually respond to that and restore balance. I’d prefer a location where that is unlikely to happen at least in the next five years.’
He said potential investors and buyers previously priced out of the market are now looking at some of Sydney’s hotspots.
‘It seems to be the northern beaches, the Sutherland shire and some of the eastern suburbs and it is really a case, what of the common threads is that they have come back from the peak by 20 per cent or even more than that,’ Mr Sheppard told Channel Seven’s Sunrise.
‘Buyers who were priced out of the market not so long ago and now looking at these current values and thinking, ‘This is good value for money’.
‘And at the same time, there has been an easing of lending criteria and interest rates have dropped as well. So, you get a couple of those factors together and it has brought everyone back into the market.’
He added that 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’,’ Mr Sheppard told Daily Mail Australia earlier this month.