New growth stars will emerge for the property market in 2016. Where will they be?
By Terry Ryder (Property Observer)
New growth stars will emerge in 2016. You’re most likely to find them in Brisbane, Melbourne, regional New South Wales and regional Queensland, although others such as Adelaide and Hobart may put their hands up.
Here are five areas I think are worth watching as we get into the New Year. These are all places that should produce price growth in 2016, on the back of serious momentum with rising sales activity in their markets.
1. Oxenford and the northern growth corridor, QLD:
The Gold Coast is now the clear national leader among the Local Government Areas of Australia. It has the most growth suburbs, by a wide margin.
These rising suburbs are found right across Gold Coast city, but the growth corridor stretching north from the Gold Coast towards Brisbane is the standout area, with growth suburbs either side of the Pacific Motorway.
Oxenford stands out, with sales rates lifting from 80-90 per quarter last year to 130-135 in the past two quarters. Other growth suburbs in this precinct include Coomera, Upper Coomera, Pimpama and Ormeau.
2. Lalor and Whittlesea, VIC:
The focus of Melbourne’s up-cycle has switched increasingly from the middle market to the outer suburbs, where affordability and good infrastructure are key drivers.
The Whittlesea LGA in the northern suburbs is leading the way, headed by the suburb of Lalor (median house price $400,000), where sales rates have increased from around 70 per quarter last year to above 100 more recently.
Other growth suburbs in this precinct include Epping, Mill Park, Doreen, Mernda and Thomastown.
3. Beenleigh and Logan City, QLD:
Logan City, which borders the Gold Coast to the south and Brisbane City to the north, has led the revival of Greater Brisbane markets in 2015.
It has more growth suburbs than any other precinct in the Brisbane metropolitan area, headed by Beenleigh, the administration centre for the LGA, where house sales have increased steadily over the past 12 months or so.
Another standout suburb in Logan City is affordable Eagleby, where sales in the past four quarters have increased from 59 to 65 to 95 to 102.
4. Forster-Tuncurry, NSW:
The Great Lakes LGA in the Mid North Coast region of New South Wales is a standout performer is this latest survey for The Price Predictor Index.
Residential sales in Forster, about 300km north of Sydney, have risen from 106 to 114 to 139 to 152 to 155 in consecutive quarters, while neighbour Tuncurry has recorded a similar pattern.
5. Point Cook and Wyndham City, VIC:
Another example of the emergence of the affordable outer ring suburbs of the Melbourne metropolitan area is Wyndham City in the south-west heading towards Geelong.
A number of suburbs have strong growth trajectories, headed by the developing suburb of Point Cook, where quarterly sales in the past 18 months have been 289, 313, 350, 396, 395 and 420.
Wyndham Vale is another standout market in this precinct, with quarterly sales levels lifting from 85-90 about 18 months ago to around 140 in the September 2015 Quarter.