Burekup in south west Western Australia is ripe for future property price growth new analysis shows.
The Well Money Green Shoots Report found the small town, near Bunbury had a combination of falling inventory levels and steadily rising asking prices, which suggests capital appreciation could be around the corner.
The report also identified units in St Albans, Victoria, as a location with tight inventory levels and higher asking prices along with Moonta, North Brighton and Glenelg in South Australia.
Across the country, there were 12 metro and eight regional locations identified as having growth potential.
With 14 housing markets and six unit markets making up the top 20 locations.
Well Money Chief Executive Officer Scott Spencer said inventory levels had fallen in each of the 20 markets over the September quarter.
“The reason inventory levels are such an important leading indicator is because they tell you what’s happening with the balance of power in a particular market,” Mr Spencer said.
“When inventory levels are falling, that means buying conditions are becoming harder, which forces buyers to compete harder and puts upward pressure on prices.
Mr Spencer said in all of the top suburbs, days on market had either remained unchanged over the past three months or fallen.
“When properties sell more quickly, that’s another sign of growing buyer competition,” he said.
“When supply falls and demand rises, vendors take notice.
“As a result, in all but two of the 20 suburbs, vendors raised their asking prices over the quarter.”
Mr Spencer said despite national prices retreating there were still locations that had growth potential.
“Instead of looking backwards, it uses in-depth property data analysis to forecast what’s likely to happen in the not-too-distant future,” he said.
