Hotspots, hotspots everywhere. Where are the experts tipping for growth next year?
Earlier this week, we reported on the five Sydney suburbs real estate identity John McGrath had tipped for growth in 2017 – and now we can reveal the 15 other suburbs from around the country he says will give investors the strongest returns.
Property market predictions for next year are starting to flood in and there are a number of suburbs where prices could soar, according to the founder of McGrath Estate Agents. Mr McGrath has identified his top picks for 2017 and dismissed claims that Australia’s two largest cities are in trouble.
“People ask me if I think Sydney and Melbourne are overvalued off the recent cycle uplift. But my honest view is that Sydney and Melbourne are the ‘New Yorks of Australia’ and will be in huge demand as far into the distance as I can possibly see,” he said.
“In fact, with several billion people on the doorstep of this lucky country, many with a huge appetite to enjoy the lifestyle that we have, it would be far easier to mount a sensible argument that both the big cities will look incredibly cheap as we look back in a decade or so. That is assuming that we manage our growth well and find a way to sensibly welcome immigrants and overseas investors into the country.”
Mr McGrath’s top 2017 picks and his rationale are below. Do you agree with Mr McGrath? Or are you hoping your suburb takes off instead?
“A hidden gem neighbouring Prahran, Windsor was once considered the grungy end of Chapel Street but now the hipster crowd is moving in. We see great potential for this trendy pocket, which has easy access to trains and shops and is conveniently close to the CBD.”
“Change is on its way with a noticeable uplift in buyer demand over the past 12 to 18 months. This suburb is full of mid-century homes on big blocks with plenty of potential for knockdown/re-builds and development. Downsizers are capitalising on a 10 to 15 per cent jump in land values over the past few years and selling to young families and developers.”
“Just six kilometres north of the CBD, Northcote has undergone major change and is now a destination suburb for young professionals and families. High Street village offers many restaurants and the tram runs straight through to the city, with a train station also close by. Local schools including Northcote High and Santa Maria College are increasingly popular.”
“Wheelers Hill has a median house price that is $250,000 less than its neighbours of Glen Waverley and Mount Waverley, yet it is only five to 10 minutes away. Buyers are increasingly looking for better value here and we anticipate solid price growth as a result.”
“This inner-city precinct less than three kilometres from Melbourne’s CBD has been through significant gentrification over the past decade. With an abundance of leisure and lifestyle amenities, it also has cycling and running routes alongside the Yarra River. Young professionals and families enjoy its walkability and accessibility well-serviced by trams and trains, while cashed up downsizers are now discovering this gem.”
BRISBANE AND SURROUNDS
“Brisbane’s smallest suburb, Gordon Park offers fantastic value and great infrastructure. Access to the CBD has become much easier with the Clem7 and Inner City Bypass. New cafes are popping up and a ripple effect is occurring from the more established and pricier neighbouring suburbs of Grange and Wilston.
“Situated next to St Lucia and Indooroopilly, Taringa has access to all the same amenities as its blue chip neighbours but offers better value for buyers. According to CoreLogic, Taringa house prices rose 10.2 per cent in FY16 but we think there is more growth to come.”
“This suburb offers very good value and a mix of waterfront and non-waterfront homes. We are seeing at least four to five registered bidders across all auctions in this suburb. This is an ideal location for second home buyers who don’t have the budget for Mermaid Beach. A lot of buyers are renovating so the suburb is undergoing a facelift.”
“With a median house price of $675,000, it offers better value than neighbouring Sunshine Beach (median $1,015,000) but probably not for long. Just a few minutes outside Noosa, Sunrise Beach has had a noticeable kick in activity and 12.5 per cent house price growth in FY16.”
“This is a town on the move with its CBD undergoing a complete makeover. Just two kilometres from the ocean, there is already a fresh, exciting new vibe on the main street with lots of new roads, retail, commercial spaces and community facilities on the way.”
“Underrated and primed for growth, Canberra’s largest suburb with 6,140 homes offers better value than Woden and Weston Creek, and a diverse range of properties. Centrally located, it is the most northern suburb of Tuggeranong, with good access to arterial roads for the CBD commute.”
“Big money is being spent in Curtin, which has undergone a changing of the guard over the past few years. Ex-government housing has been sold off, knocked down and re-built, and family buyers priced out of Deakin, Hughes and Garran have bought and renovated.”
“Adjoining Turner where houses are in very short supply, O’Connor offers great value. However, strong buyer demand has made it Canberra’s number one suburb for growth in FY16, with house prices rising 21.5 per cent to a median of $960,000 and apartment/townhouse values up 15.3 per cent to $490,000.”
“Sitting on opposite sides of Flemington Road, the main arterial road leading out of Gungahlin to the city, these two suburbs will directly benefit from the new light rail. Both are family-oriented neighbourhoods with good schools and close proximity to the CBD.”
“These two suburbs are well-positioned to benefit from Belconnen’s gentrification. A lot of new townhouses and apartments are being built in the area, creating residential precincts with great amenities including shops, restaurants and cinemas.”