But what makes a suburb a good buy? According to Hotspotting.com.au founder Terry Ryder, there are 10 elements to consider.
These include infrastructure for or links to transport, education, lifestyle or medical amenities; ‘ugly duckling’ areas that are being gentrified; proximity to job hubs; urban renewal or government policy; consistency; the ripple effect of expensive suburbs; ‘boom town syndrome’; and sea or hill change.
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The best suburbs – the ones that will see the highest property price growth – will have at least three of these elements.
“They are places on the cusp of a phase of good capital growth. They’re locations with identifiable drivers of demand for real estate, which will place pressure on prices and rents,” explained Ryder.
“We expect them to show growth not only in 2020 but well beyond.
“They are all locations we expect to show steady growth over the longer-term.”
Whether you’re looking for your first home or looking to invest here’s where the ‘cream of the crop’ suburbs are this year:
1. Sunshine Coast, Queensland
This area has become “the strongest property market in Queensland, boosted by the strengthening of its economy and major spending on infrastructure,” said Ryder.
The area is slated for major infrastructure growth to health and medical facilities; transport, sport and entertainment; and commercial development.
2. Badgerys Creek Precinct, NSW
Home to Sydney’s second airport, Western Sydney Airport, this area will become an economic powerhouse and has been nicknamed ‘aerotropolis’ thanks to the major projects planned for this location.
Not only will a new airport be built but there will be several road upgrades, rail link extensions, as well as a number of residential developments. This area is expected to create thousands of new jobs.
3. Marion, South Australia
This area in south-west Adelaide is now home to 30 innovation, science and tech start-ups, and will become home to Flinders University’s new village. Transport projects are also improving connectivity and creating more business opportunities.
“The creation of jobs is driving the demand for property, making the City of Marion a strong leader in the Adelaide market, which we regard as the most under-rated in capital city Australia,” said Ryder.
4. Bendigo, Victoria
Attracting buyers from Melbourne, Sydney and Brisbane, this is one of Australia’s leading growth markets thanks to its affordable homes (typically priced below $400,000), strong yields and low vacancy rates.
Strong transport links to Melbourne’s CBD, the re-development of Bendigo’s hospital and a $1.3 billion Defence contract signed to a Bendigo-based business will see the property market in this area grow strongly.
5. Moreton Bay region, Queensland
Property growth in this area is being spurred on by high levels of infrastructure spending and great housing affordability, which is attracting migrants, first-home buyers and investors alike and driving up housing demand.
Located between central Brisbane and the Sunshine Coast, job hubs are easily accessible and are also near the water. Price growth in this area is higher than Brisbane averages, according to Ryder.
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