Aussie property hotspots where demand is set to ‘rocket’

Aussie property might be softening in some areas, but according to property forecaster LocationScore.com.au, there are still plenty of opportunities for those who know where to look.

Key indicators for areas that are poised to grow include vacancy rates, auction clearance rates, search interest, the number of days on the market and renter-to-owner ratio, according to LocationScore.com.au director of research Jeremy Sheppard.

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“The trick is to track all the factors that drive the demand/supply curve in a suburb,” he said.

“Rocketing demand relative to supply is an excellent gateway indication of a suburb’s
potential for real estate price growth.”

He added that more than half the suburbs on the list are priced below $550,000, meaning they’re extremely accessible for most capital-city buyers.

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“One of the more interesting outcomes from our research is that Adelaide locations
are seeing some of the strongest results in our demand vs. supply study – its
suburbs came in just behind Melbourne.”

“Combined with its relative affordability, Adelaide is a city that could yield excellent
outcomes for savvy investors.”

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Did your suburb make the cut?

Suburbs were given a score out 100, with scores above 62 considered as having good prospects for investment, and those over 77 considered excellent.

Melbourne

Melbourne’s suburb of Baxter took out first place with a score of 83, thanks to its small size and median house price o $534,000.

“Best of all, it has lifestyle, with easy access to the Port Phillip Bay foreshore and
excellent facilities in adjacent suburbs,” Sheppard said.

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Adelaide

The dark horse of the race, Adelaide’s time in the spotlight may be just around the corner, according to LocationScore.

With a score of 79, the Port Adelaide River suburb of Birkenhead is an example of the state’s appeal.

“Online search interest is strong, stock numbers are tight, there’s little price
discounting and vacancy rates are low,” Sheppard said.

“Our research shows Birkenhead to be well worth a deep dive for investors, but
they’ll need to move fast – there’s is strong demand and probably not enough stock
available to give them time to be choosey.”

Brisbane

According to Sheppard, Ferny Hills offers an “excellent option” for those looking to buy in Brisbane.

“Housing has a median price of just $546,000 – with good quality family houses on
decent-sized suburban blocks surrounded by desirable shopping and lifestyle
facilities as well as easy access to the train station at Ferny Grove.”

“With online search interest of almost 200 hits per listing, sellers don’t have long to
wait before they receive a healthy offer in Ferny Hills, so prices are being driven
upward.”

Sydney

“Sydney housing always garners demand – and our analysis shows there are still
plenty of locations where buyer numbers are rising while supply tightens,”
Sheppard said, pointing to the lifestyle suburb of Cromer.

“With frontage to Narabeen Lakes and easy access to popular beaches such as Dee
Why, this suburb provides a highly attractive lifestyle with comprehensive services
and facilities,” he said.

“We are seeing more and more buyers looking at property in Cromer online, and
vendors are hardly needing to discount their asking prices in order to sell.
“It certainly bodes well for house prices in the near future.”

Perth

The post-mining hangover is starting to wear off, and now could be a perfect time to start looking at Perth, Sheppard said.

“If you’re looking for options to buy-in, our research shows Bibra Lake should be on
your list,” he said.

“Positioned 18 kilometres south of the CBD, it provides housing with a median just
over $500,000, all within a short drive to popular Fremantle.

“The research shows sellers are in no panic and buyers are making decent offers.

“This is a healthy market for investors because demand is ahead of supply but not
alarmingly.”