The spark beneath the property market is heating house prices, and strong growth is expected this year.
The cream of the crop could see median house prices increase by 7.5 per cent this year, according to new research by Suburb Growth.
The top two suburbs tipped to see that high percentage increase are St Leonards in Launceston, Tasmania, and Bangor in Sydney’s south.
The reason prices are expected to grow in St Leonards is partly because of the strong demand versus supply.
“While it’s only located about 10 minutes from the centre of Launceston, St Leonards offers a mix of residential and semirural homes, with an affordable price tag to boot,” Select Residential Property research director Jeremy Sheppard said.
When it comes down to the actual dollars, several locations are expected to see their median house prices rise by more than $100,000 this year.
Most of the strongest suburbs are located in Sydney, followed by Adelaide and Melbourne, who both feature twice in the top 20.
This research focused on areas with a significant urban area and houses, instead of units, Mr Sheppard said.
“It’s important that this type of research only includes the most statistically reliable metrics. We include Market Cycle Timing, Ripple Effect Potential and Neighbour Price Balancing, as well as exclude locations that might have one-off demand spikes,” he said.
While many of the suburbs on the list had median house prices north of $1 million, there were six in the top 10 alone where the average was less than a million.
Mr Sheppard said this is because there is an increasing importance of housing affordability for buyers.
An example of this is the Crestwood suburb in Canberra, with a median house price of $481,000. However, the area is expected to see a growth of 7.3 per cent, which will see prices rise by $35,000 over the year.
“Crestwood is located within an easy commute of Canberra however, its median house price is significantly more affordable than our nation’s capital,” Mr Sheppard said.
Top 20 locations for forecast median house price growth in 2020
1- St Leonards, Launceston, Tasmania + 7.5 per cent
2 - Bangor, Sydney, NSW + 7.5 per cent
3 - Crestwood, Canberra-Queanbeyan + 7.3 per cent
4 - Birkenhead, Adelaide, South Australia + 7.3 per cent
5 - Heathcote, Sydney, NSW + 7.1 per cent
6 - Davidson, Sydney, NSW + 7.1 per cent
7 - Booragul, Newcastle-Maitland, NSW + 7.1 per cent
8 - Hendon, Adelaide, South Australia + 7.1 per cent
9 - Allambie Heights, Sydney, NSW + 7.0 per cent
10 - Bronte, Sydney, NSW + 7.0 per cent
11 - Collaroy Plateau, Sydney, NSW + 7.0 per cent
12 - Helensburgh, Wollongong, NSW + 7.0 per cent
13 - Watsonia North, Melbourne, Victoria + 6.8 per cent
14 - North Warrandyte, Melbourne, Victoria + 6.8 per cent
15 - Paddington, Sydney, NSW + 6.8 per cent
16 - Narraweena, Sydney, NSW + 6.8 per cent
17 - Beacon Hill, Sydney, NSW + 6.8 per cent
18 - North Epping, Sydney, NSW + 6.8 per cent
19 - Woronora Heights, Sydney, NSW + 6.8 per cent
20 - Abbotsbury, Sydney, NSW + 6.8 per cent