The housing market recovery in the country's two biggest cities are now having a knock-on effect in a number of regional locations around Sydney and Melbourne, with median house prices expected to increase over the next three years.
Regional areas have fared better than many metropolitan markets and that performance would continue, according to property valuation firm SuburbGrowth.
Many regional markets recorded a rise in October, with regional South Australia and regional Western Australia the only “rest of state” areas to see prices fall.
The company's latest analysis, which uses a number of market variables to help determine the locations with the best chance of superior price growth, has focused on regional and holiday destinations holding solid market fundamentals outside the tourism sector.
While NSW claimed the lion's share of booming suburbs, Victoria, Tasmania and Queensland each had high profile locations within the rankings.
|Rank||Suburb||State||Median house price||3-year growth forcast|
The suburb of northern NSW suburb of East Ballina has been named one of the country’s top regional growth destinations primed for a 28 per cent price increase in median house prices over the next three years.
The suburb, within close proximity to both Byron Bay and the Gold Coast, has seen renewed investor interest following the RBA’s combined 50 basis point rate cut and the easing of a series of macro prudential measures which were originally designed to reduce the rapid growth in investor lending.
“The region is well-known for its abundance of natural beauty, which draws millions of tourists each year,” SRP director of research Jeremy Sheppard said.
“However, suburbs like Bilambil Heights are also popular with local residents because of its topography as well as location within an easy commute to the Gold Coast.”
|Rank||Suburb||State||Median house price||3-year growth forecast|
|12||North Boambee Valley||NSW||$517,000||23.3%|
The five top growth suburbs currently have median house prices between $431,000 and $825,000, including Rosetta in Hobart, Kuluin on the Sunshine Coast and Kiama, south of Wollongong.
“While some of these locations might be better known as holiday destinations, they also have significant local populations—in some cases, hundreds of thousands of people who live there all-year round.”
“What this means is that these markets have solid fundamentals primed for growth, including the economic principals of demand and supply that apply upward housing price pressure.”
Melbourne recorded strong price growth over October hitting a 2.3 per cent increase in housing values—its strongest rate since 2009— and the sentiment seems to be trickling back into its regional markets.
In Victoria, the rural town of Albury Wodonga is projected to line the pockets of investors, with West Wodonga tipped to spike up by an impressive 24.2 percent over the next three years.
The towns of Dennington, Mildura and Echuca are also projected for high returns, earmarked to grow by 23.3 per cent, 22.1 per cent and 20.4 per cent respectively.