Queensland suburbs have taken out the top three spots in the Well Home Loans Green Shoots Report, which identifies the top 20 Australian suburbs likely to experience strong growth in 2022.
South Australian and Victorian suburbs took out the next five spots, with New South Wales suburbs rounding out the top ten, placing 9th and 10th.
The top 20 results included a mix of metro and regional locations, each showing the clearest signs that strong price growth is just around the corner, due to a combination of decreasing inventory levels, decreasing days on market, and increasing asking prices, over the past three months.
Well Home Loans CEO Scott Spencer said the Well Home Loans Green Shoots Report had identified a diverse range of markets, most of which were reasonably affordable.
“The top 20 list includes 11 metro locations and nine regional locations scattered around seven states and territories,” Mr Spencer said.
Coming in at number one was the Ipswich, Queensland, suburb of Deebing Heights. The leading indicators were the sharp fall in inventory levels, down by 72.3 per cent, and days on market, down by 15 per cent, over
the past three months.
South Australia was the next state to appear on the list, with the Davoren Park house market ranking number four.
Over the past three months, inventory levels have fallen 52.2 per cent, while days on market have declined 2.4 per cent.
The Huntly house market in Bendigo was the standout Victorian location, the first to appear on the list, at number five.
Inventory levels and days on market were incredibly low, at 2.1 months and 22 days respectively, with vendors raising asking prices three per cent in the past three months.
The NSW market showing the clearest signs of future growth was the Wilton house market, which came in at number nine.
Over the past three months, inventory levels have fallen 46.3 per cent, triggering a 4.3 per cent jump in asking prices.
Western Australia made its appearance in the 11th spot, with the Como house market in south Perth.
During the past three months, there have been significant changes in inventory levels, down 39.8 per cent, and asking prices, up 6.2 per cent.
The first Northern Territory market to make the list was Darwin City, which was also the first unit market, ranking number 15.
While inventory levels remained high, they fell from 12.7 months to 10 months over the past three months.
That’s helped drive a 2.6 per cent rise in asking prices
The first of two Tasmanian markets on the list was the Ambleside house market in Devonport, coming in at number 18.
Over the past three months, asking prices have jumped by 11.5 per cent, likely because of the sharp fall in inventory levels, from 5.6 to 3.3 months.
Of the 20 locations, 18 were house markets and two were unit markets.
“The Well Home Loans Green Shoots Report doesn’t actively search for affordable locations, but in a nice coincidence, most of the suburbs on this list would be accessible to the average family, with asking prices ranging from less than $300,000 to just under $900,000,” Mr Spencer said.
Mr Spencer said the Well Home Loans Green Shoots Report provided valuable data for first home buyers, investors, and anyone else thinking about buying a property.
“The standout feature about this quarterly report is that it focuses on leading indicators, which give a guide to the future, rather than lagging indicators, which tell you about the past,” he said.
“The key leading indicators are inventory levels and days on market, which tell you about the balance between supply and demand.
“When those two indicators are falling, it means buying conditions are becoming harder, which suggests prices are likely to rise in the months and even years ahead.”
But while the report provides a good indication of future growth, Mr Spencer cautioned against relying solely on the report when making buying decisions.
“The Well Home Loans Green Shoots Report is one piece of the puzzle, but it’s not the entire puzzle. Do your research and seek professional advice,” he said.
