10 markets to take-off in 2016
The flow-on effects of Australia's capital city property boom and new policies and projects mean that regional centres are the markets to watch this year, according to a prominent analyst.
Onthehouse Data has created a list of the top 10 markets to watch this year based on past growth, forecast growth and upcoming developments.
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The top four spots were filled by regional NSW locations, while the overall list contained seven regional local government areas.
Gosford topped the ranking, with houses enjoying 17.6 per cent median price growth in 2015 and the rental yield sitting at 4.5 per cent.
Onthehouse Data analyst Eliza Owen said suburbs within Gosford enjoy a spillover of wealth from Sydney in the form of residential investment and tourism.
“Despite enormous growth in 2015, regional NSW tends to lag a little behind Sydney. This is supported by historical growth patterns, therefore growth could continue into 2016,” she said.
Lake Macquarie placed second on the list, with house prices growing 8.1 per cent last year and house yields now reaching 4.8 per cent.
“The area contains suburbs with very affordable dwellings, some with strong rental yields,” Ms Owen said.
“For owner-occupiers, the area is popular with retirees and has a growing healthcare sector to support quality of life.”
The number three spot was filled by Newcastle, which has house price growth of 5.2 per cent and a yield of 4.7 per cent.
Ms Owen said Newcastle has undergone tremendous development in the last few years and could achieve further growth if it receives a planned influx of Syrian refugees.
Shellharbour came fourth, with house prices growing at 13.5 per cent and house yields at 4.8 per cent.
This market is also set to benefit from the Sydney wealth spillover, according to Ms Owen.
Whittlesea in Melbourne placed fifth, with capital gains running at 7.4 per cent and yields at 4.2 per cent.
Ms Owen said that as population growth remains high over the next decade, anywhere within reasonable distance and commute time to the CBD is likely to experience long-term growth.
The sixth and seventh spots on the list were filled by Brisbane and Logan, a local government area on the fringes of Brisbane.
The list was rounded out by Hobart in eighth, the Gold Coast in ninth and the Sunshine Coast in 10th.
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