While homes across the country have had tens of thousands of dollars wiped off their values in recent months, some suburbs are absolutely skyrocketing.
But what are the secret ingredients that make some suburbs bust while others boom?
According to realestate.com.au chief economist Nerida Conisbee, it comes down to a handful of key factors.
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They include new infrastructure projects, lifestyle factors, affordability and their attractiveness to young people.
“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,” Ms Conisbee said.
“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.”
She said affordability and the arrival of young people were also key indicators of a suburb’s potential for growth.
“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,” she said.
“And when young people move in it changes an area and leads to gentrification and improvement of housing stock and price growth.”
Ms Conisbee also shared her tips for the top Melbourne, Queensland and Adelaide suburbs for the coming year.
• 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”, Ms Conisbee said.
• 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.
• Paddington, Brisbane: The inner northern, premium suburb is exploding in popularity due to its broad appeal to both younger and older buyers, its affordability and its proximity to the city.
• Chandler, Brisbane: The outer suburb offers “massive homes” and “big properties” on acreages with a median price of $1.5 million.
• Tallebudgera Valley, Gold Coast: Sydney buyers priced out of the NSW capital’s beachside suburbs are increasingly flocking to the Gold Coast area which offers a similar lifestyle for a fraction of the cost, Ms Conisbee said.
Meanwhile, Starr Partners chief executive officer Douglas Driscoll has also announced some of the top Sydney suburbs to watch in 2019.
• Eveleigh: Billed to become “Australia’s Silicon Valley”, Mr Driscoll said a new technology and innovation project will bring more jobs and start-ups to the area, which will in turn raise Eveleigh’s prices. There are also lots of new apartment developments in the works and amenities such as an art centre, hip eateries and good public transport.
• Brookvale: With average house prices up to $180,000 cheaper than neighbouring Dee Why and Allambie Heights, Mr Driscoll said a masterplan to turn Brookvale into a vibrant precinct is also on the cards, which will add bars, cafes and restaurants as well as residential opportunities to the area.
• Waterloo: The inner suburb is next in line to become one of Sydney’s “reborn residential hot spots” according to Mr Driscoll, who said the suburb was undergoing a major skyline transformation with a wave of new apartments in the works as well as a new metro line.
Mr Driscoll also named Maroubra, Baulkham Hills, Auburn, Millers Point, Castle Cove, Breakfast Point and Riverstone as Sydney up-and-comers.
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