Top 20 suburbs to watch for future growth

author-avatar By on August 11, 2021
Top 20 suburbs to watch for future growth

A new report from Well Home Loans has identified the 20 suburbs in Australia that are showing the clearest signs of price growth in the near future. 

The quarterly 'Green Shoot Report' includes suburbs scattered across all major states and territories with South Australia featuring the most with five of the top 20 suburbs.

The top 20 suburbs identified by Well Home Loans were:

Rank  State  Suburb  Postcode  Type  Price 
1 NT  Mount Johns  874 House  $680,000
2 NSW  Oxley Park  2760 Unit  $559,000
3 QLD  Rainbow Beach  4581 Unit  $299,000
4 NSW  Elermore Vale  2287 Unit  $494,390
5 SA  Glenelg  5045 Unit  $485,000
6 SA  Hackham  5163 House  $370,800
7 WA  Rockingham  6168 Unit  $318,000
8 WA  Madeley  6065 House  $581,400
9 SA  North Haven  5018 House  $555,000
10 QLD  Hope Island  4212 Unit  $534,600
11 SA  Pooraka  5095 House  $395,000
12 SA  Modbury North  5092 House  $438,700
13 QLD  Wynnum  4178 Unit  $470,400
14 ACT  Florey  2615 Unit  $463,840
15 VIC  Carrum Downs  3201 Unit  $480,000
16 WA  Seville Grove  6112 House  $335,000
17 VIC  Werribee  3030 Unit  $400,000
18 NSW  St Marys  2760 Unit  $499,000
19 TAS  Carlton  7173 House  $460,000
20 VIC  Sandringham  3191 Unit  $700,000

 Source: Well Home Loans Green Shoots Report

Well Home Loans CEO Scott Spencer said the report identified a diverse range of promising housing markets around the country.

"The top 20 list includes 14 metro locations and six regional locations scattered around all eight states and territories," Mr Spencer said.

"Of the 20 locations, 12 are unit markets and eight house markets, catering to a variety of budgets.

"That shows, no matter where you live, there might be a nearby housing market where prices look set to accelerate in the not-too-distant future."

Mr Spencer said that the report doesn't just consider past factors.

"This one analyses key leading indicators so buyers can understand which markets are likely to show strong price growth in the medium-term," he said. 

The 20 suburbs chosen showed the strongest combination of three main factors over the last three months:

  • Inventory levels decreasing
  • Days on the market decreasing
  • Asking prices increasing 

"Inventory levels is a really important leading indicator, because it tells you whether the balance between supply and demand is trending in favour of vendors or buyers," Mr Spencer said.

"That's one clue as to how prices are likely to move in the months and years ahead.

"When you look closely at changes in days on market, you also get an indication what what might happen to prices in the future.

"When days on market are trending down, it tells you buyers are being forced to fight harder for properties, which puts upward pressure on prices.

"When vendors feel the market turning in their favour, they start increasing their asking prices."

Mr Spencer also said buyers shouldn't look soley at the lender's report when deciding where to buy or the timing of their purchase, and to seek professional advice.


Image: Isaac Smith on Unsplash

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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