Rising Coastal Suburb Prices Predicted
Kanebridge News
Share Button

Rising Coastal Suburb Prices Predicted

Suburbs in Sydney are set for 23% growth in 24 months.

By Terry Christodoulou
Thu, Mar 18, 2021 10:37amGrey Clock < 1 min

Coastal suburb house prices in Sydney and the Gold Coast are tipped to climb over the next two years, a new report shows.

Data calculated by Select Residential Property predicts a rise of up to 23.05% in southern Sydney suburb Gymea Bay and 21.6% in northern beaches suburb Warriewood.

Based on housing supply and data indicators — which indicates a want for larger properties, close to the water and further from the CBD as driving factors – the median house price in Gymea Bay is set to rise by $311,711 to 1,664, 359 and in Warriewood by $360,310 to $2,025,330.

In determining the price trajectory for a suburb, Select Residential Property research director Jeremy Sheppard takes into account 17 demand and supply metrics, including auction clearance rates, vacancy rates, discounting levels, days on market and the number of properties available to arrive at a ‘suburb score’.

“The list of areas with the highest growth potential all have high demand relative to supply and all scored well above 80, which are historically reflective of double-digit growth rates,” said Mr Sheppard.

Across the country, house values in the Gold Coast’s Elanora and Worongary are also expected to grow over the next 24 months, indicating a potential 22% each. Elsewhere, Melbourne’s Keilor Park and Diamond Creek are to see 10% and Adelaide’s Cumberland Park is forecast to grow by 20.6%.

Queensland’s Airlie Beach and South Townsville are expected to see unit value drop by 8.5% and 8% respectively. Similarly, the report predicts South Bunbury and Bunbury in Western Australia is staring down an 8.6% and 7% drop respectively.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

Related Stories
Another rate rise forecast, it’s just a question of how big
Another rate rise forecast, it’s just a question of how big

Amid looming rate rises, there are reasons to be cheerful as mortgage holders head into 2023

Mon, Feb 6, 2023 2 min

Mortgage holders should brace themselves for more pain as the Reserve Bank of Australia board prepares to meet tomorrow for the first time this year.

Most economists and the major banks are predicting a rise of 25 basis points will be announced, although the Commonwealth Bank suggests that the RBA may take the unusual step of a 40 basis point rise to bring the interest rate up to a more conventional 3.5 percent. This would allow the RBA to step back from further rate rises for the next few months as it assesses the impact of tightening monetary policy on the economy.

The decision by the RBA board to make consecutive rate rises since April last year is an attempt to wrestle inflation down to a more manageable 3 or 4 percent. The Australian Bureau of Statistics reports that the inflation rate rose to 7.8 percent over the December quarter, the highest it has been since 1990, reflected in higher prices for food, fuel and construction.

Higher interest rates have coincided with falling home values, which Ray White chief economist Nerida Conisbee says are down 6.1 percent in capital cities since peaking in March 2022. The pain has been greatest in Sydney, where prices have dropped 10.8 percent since February last year. Melbourne and Canberra recorded similar, albeit smaller falls, while capitals like Adelaide, which saw property prices fall 1.8 percent, are less affected.

Although prices may continue to decline, Ms Conisbee (below) said there are signs the pace is slowing and that inflation has peaked.

“December inflation came in at 7.8 per cent with construction, travel and electricity costs being the biggest drivers. It is likely that we are now at peak,” Ms Conisbee said. 

“Many of the drivers of high prices are starting to be resolved. Shipping costs are now down almost 90 per cent from their October 2021 peak (as measured by the Baltic Dry Index), while crude oil prices have almost halved from March 2022. China is back open and international migration has started up again. 

“Even construction costs look like they are close to plateau. Importantly, US inflation has pulled back from its peak of 9.1 per cent in June to 6.5 per cent in December, with many of the drivers of inflation in this country similar to Australia.”

8 Smart Home essentials

These are the smartest bits of tech for your home.

Clean Air

Technology that seamlessly fixes air quality will become widespread in homes by 2030, real-estate developers say. Will homebuyers care once the pandemic subsides?

    Your Cart
    Your cart is emptyReturn to Shop