Neutral Bay and the Spit are the top areas for houses across the East Coast (Brisbane, Sydney and Melbourne) when it comes to five-year predictions in our exclusive run down of property data.
According to Residex, houses in this Sydney area are forecast to grow by an annual rate of 9.28% over the next five years and 9.59% over the next eight years.
Residex bases its projections on a number of factors, including analysis of historical data over many decades (back to 1901 for some areas) and other factors – such as interest rates, inflation, employment levels – to understand their bearing on the property market.
Its suburb report for Neutral Bay reveals only 27 properties on the market and a 0% discount rate, which is a very good sign. In the last three months alone, 85 properties were sold in a suburb that only has 96 streets.
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For Victoria, the area predicted to grow the fastest is Inner Melbourne, where growth is predicted to be 8.42% over the next five years and 6.35% per annum over the next eight years.
The Residex suburb report for Melbourne (postcode 3000) shows that 515 properties have been sold in this postcode in the last three months. That number also includes units of which there are a total 43,681 but only 753 houses in the area.
The remainder of our top 20 areas highlights the diversity of growth expected across the East Coast.
Queensland doesn’t make an appearance until number 10 on our list but it has been dogged by lower sentiment and property experts expect it to be slower to rebound.
There are reasonably priced investment suburbs in our list as well, Brunswick in Melbourne, for example, has a median price for houses of $516,500, forecast growth of 7.21% and a yield of 4.32%. There was also a 14.16% increase in the properties sold there over the past year as well.
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