Australians have been told to look to popular holiday destinations for house price growth, with many hot spots also enjoying strong economic growth, according to new research.
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Analysis by Select Residential Property Research Group (SRP) service, Suburb Growth identified 20 holiday-destination suburbs set to grow an average 28 per cent in price in the next three years.
“While some of these locations might be better known as holiday destinations, they also have significant local populations – in some cases, hundreds of thousands of people who live there all-year round,” SRP director of research Jeremy Sheppard said.
“What this means is that these markets have solid fundamentals primed for growth, including the economic principles of demand and supply that apply upward housing price pressure.”
The suburbs with huge growth expected
Sheppard said that with around one-in-three Australians now working from home, there is a stronger demand for premium lifestyle destinations.
“These areas are much more than just holiday locations,” Sheppard said.
“They are also thriving communities in their own right, with sound local economies and property markets with buy-in prices as low as $297,000 in one location.”
He pointed to northern-NSW suburb Ballina, which is close to both Byron Bay and the Gold Coast, giving it strong upside potential.
“The region is well-known for its abundance of natural beauty, which draws millions of tourists each year,” Sheppard said.
“However, suburbs like Bilambil Heights are also popular with local residents because of its topography as well as location within an easy commute of the Gold Coast.”
The same goes for Tasmanian suburb Rosetta, where SuburbGrowth.com.au predicts prices will grow 25.1 per cent in the next three years.
And Kiama in southern NSW is another option, with prices tipped to grow 24.4 per cent.
“While tourists might head to Kiama each year for holidays, its residents get to enjoy its myriad attractions every day, including a number of popular surfing spots,” Sheppard said.
“On top of that, Wollongong is expected to go from strength to strength in the years ahead given its location just 120 kilometres south of Sydney.”
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