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Aussie property market is at its peak in these areas

Samantha Menzies

Properties in Melbourne, Newcastle, the NSW Central Coast and the Gold Coast are at their peak of the market in August.

For houses, Melbourne, NSW Central Coast and Newcastle are the areas where the market has reached its peak, with the unit markets in Coffs Harbour, Gold Coast, Ipswitch, NSW mid-north coast and south east NSW close behind as those "approaching the peak of the market", according to the latest report by Herron Todd White.

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On the other end of the spectrum, Bundaberg, Tamworth and Townsville are the three areas which have reached the bottom of the market for houses.

For units, the star markets are Melbourne, NSW central coast, Gold Coast and Newcastle at the peak of the market - Sydney, Ballarat, Coffs Harbour, Ipswitch, NSW mid-north coast and south-east NSW are close behind as the areas approaching the peak of the market.

Whereas the areas at the bottom of the market for property are Canberra, Bundaberg, Tamworth, Townsville and Whitsunday.

When it comes to markets, the basics are supply and demand, however these all-encompassing terms are nuanced.

Depending on your location or property type, the factors that drive demand can be wide and varied, the report said.

Demand for residential properties within close proximity to the beach is one of the major drivers in the Melbourne market.

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This can be seen by the high prices at which properties are sold in suburbs along the south eastern coastline such as Brighton, Elwood and Hampton. Brighton’s median house price is $2.715 million, Elwood’s is $1.9 million, while Hampton’s is $1.765 million, the report said.

"Another lifestyle choice that is increasingly driving the market is the proximity to trendy bars and cafes, along with other public infrastructure such as public transport and schools."

"The inner north of Melbourne is fast becoming one of the most popular areas to live. Suburbs such as Collingwood, Fitzroy, Brunswick and Northcote are all very popular and have seen massive growth in the past five to ten years."

The property valuation and advisory group said there are a number of applications before Newcastle Council for multi storey unit developments (primarily residential in nature).

"The total number of units proposed within these applications is projected to yield approximately 2,800 in total of varying sizes and price points,"  said.

"This projected supply will continue stimulating the local economy from a building perspective (assuming they all commence), however after this period there is the real possibility that there could be an oversupply. This scenario occurred recently with the last unit building boom of circa 2003 and 2004.

"The over supply of units at that time took a number of years to trickle through the market place."

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In relation to the Gold Coast, HTW said houses and duplexes are definitely still the most sought after however we have noticed a stabilisation of duplex values and consider that a large portion of the growth has already occurred.

Meanwhile the NSW central coast continues to be driven by owner-occupiers either remaining in the area or relocating from elsewhere.

Retirees are moving to the area from capital cities, boosting demand, while investor activity has also increased due to slower capital gains in the major cities.