While the general property market in Australia crashes, some Australian suburbs are predicted to soar in 2019.
The Australian property market is going through a tough time at the moment, however some Australian suburbs are expected to rise over the next year down to a few key factors.
These key factors include new infrastructure projects, lifestyle factors, affordability and their attractiveness to young people.
Chief economist of Australian property website realestate Nerida Conisbee is predicting these factors to have a big influence on some Australian suburbs.
She said: ‘Infrastructure projects are definitely a big one – the new Melbourne Airport rail link and the suburban train loop will open up a lot of areas to higher price growth, for example, and Sunshine in particular is the main beneficiary as both rail lines go through there – it may end up becoming the western suburbs’ first major office precinct.’
She continued: ‘We find that when big infrastructure projects are announced it can lead to positive growth and that could be something like the expansion of a shopping centre or even the entry of a really great cafe – anything that relates to amenity can lead to better pricing.
‘Typically, we find three lifestyle factors mean a suburb will see more demand which leads to better price growth, and they are really good retailing, good schools and good public transport. If a suburb has those three things, it will typically do better than one that doesn’t.’
The other two major factors that are likely to help certain Australian suburbs see positive price growth are affordability and attractiveness to young people, and these often go together.
Ms Conisbee said: ‘Affordability is also a big one at the moment – we’re finding a lot of activity with people moving out to Geelong and that’s partly driven by affordability, because you can buy a nicer home in Geelong for a better price than you can in large parts of Melbourne, and there has also been lots of government investment with a few announcements like improving the airport, roads and train lines which has led to better growth conditions.
‘And when young people move in it changes an area and leads to gentrification and improvement of housing stock and price growth.’
The economist shared her predictions for what Australian suburbs are likely to see growth in their property markets. Noting Melbourne and Queensland.
- Upwey: The outer Melbourne suburb, located in the Dandenong Ranges, is increasingly attractive to first homebuyers thanks to its affordability, with ‘really beautiful homes for under $700,000’.
- Park Orchards: The outer suburb has a relatively high median price but offers large homes on acreages for a similar price to an inner Melbourne ‘shoebox’.
- Middle Park: The inner beachside suburb has a high median price of $2.6 million but is still in high demand.
- Unley: Traditionally, there has always been ‘very high demand’ for the inner-southern suburb which shows no sign of slowing down in 2019.
- Adelaide Hills: Ms Conisbee said there was more and more interest in the Adelaide Hills as the area offers bigger blocks and rural living while still being relatively close to the CBD.
Next week we cover Australian suburbs for overseas property investors to look out for in Queensland and also the main Australian city of Sydney.