The numbers have been crunched and the results are in: forecasters LocationScore.com.au have unearthed 15 capital-city suburbs with excellent growth potential.
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LocationScore.com.au director of research Jeremy Sheppard said these are the suburbs that investors should have on their shortlist.
“We’ve had great results in the past with over 80 per cent of our top picks outperforming the overall Australian property market growth rate,” Mr Sheppard said.
Mr Sheppard said among the country’s best prospects are Baxter in Melbourne, Ferny Hills in Brisbane and Birkenhead in Adelaide, all of which have a median house price below $550,000.
“Just over half the suburbs on our list are priced below $550,000, which is very price accessible for most capital-city buyers,” Mr Sheppard said.
Of all the capital cities studied, Melbourne was the clear winner with its suburbs filling out the top three spots across the 15 locations.
But there was a dark horse in the running, too, Mr Sheppard said.
“One of the more interesting outcomes from our research is that Adelaide locations are seeing some of the strongest results in our demand versus supply study – its suburbs came in just behind Melbourne,” he said.
“Combined with its relative affordability, Adelaide is a city that could yield excellent outcomes for savvy investors.”
The study also shows that despite negative news about Sydney, there are still pockets set to continue their growth
Take a closer look at Adelaide
Sitting on the banks of the Port Adelaide River just 13 kilometres north west of the CBD, Birkenhead is enjoying rising interest from purchasers.
“Online search interest is strong, stock numbers are tight, there’s little price discounting and vacancy rates are low,” Mr 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.”
O’Halloran Hill was another standout for Adelaide with houses selling for around $370,000.
“Our research shows rental yields are strong and online search interest is high, so investors are certainly on the hunt in O’Halloran Hill,” he said.
“Located well south of the CBD and just inland from Hallett Cove, the suburb is also a short trip to the waterfront as well as convenience facilities.”
Just south of O’Halloran Hill sits Reynella, which has housing priced at a very affordable $330,000.
Its position in the rankings shows suburbs in Adelaide’s far-southern corridor continue to attract interest.
