Tasmanian suburb top location for growth

An affordable suburb in Tasmania is set to witness the strongest price appreciation this year, according to the latest market forecast by Select Residential Property Research (SRP).

St Leonards, a suburb in Tasmania’s Launceston area, is poised to see a 7.5% increase in median house price this year, thanks to a strong demand. This suburb currently has a median price of $269,000, which could grow further by $20,000 this year. St Leonards has a demand-to-supply ratio of 78.

"While it's only located about 10 minutes from the centre of Launceston, St Leonards offers a mix of residential and semi-rural homes, with an affordable price tag to boot," said Jeremy Sheppard, director of research at SRP.

SRP's market forecast identified 20 locations where median prices could rise by between by as much as $200,000 in 2020 alone. Twelve of the 20 areas are located in New South Wales. St. Leonards is the only Tasmanian suburb on the list.

Following St Leonards is Bangor, a suburb in the Sutherland Shire of Sydney. While Bangor is also expected to witness a 7.5% growth in median prices, the suburb was pipped at the post for the top spot due to a slightly inferior demand-to-supply ratio at 77.

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Bangor is on the higher-end of the market and has a median price of around $1.02m, which could grow further by $76,000.

"About 28 kilometres south of the city, Bangor has a relatively affordable median house price, in Sydney terms, as well as being located near the Georges and Woronora rivers, which makes it an attractive proposition for both homebuyers and investors," Sheppard said.

Next on the list is Crestwood, a suburb at the Canberra-Queanbeyan that borders NSW and the Australian Capital Territory. Unlike Bangor, Crestwood is substantially more affordable, with a median price of $481,000.

"Crestwood is located within an easy commute of Canberra however, its median house price is significantly more affordable than our nation's capital," Sheppard said.

Crestwood is projected to realise a 7.3% annual growth in median prices this year.

Adelaide's Birkenhead came in fourth. Its median dwelling value of $403,000 is also expected to grow by 7.3% this year.

"Birkenhead is located on the Lefevre Peninsula, so its borders feature reaches of the Port River. On top of that, it is only about 14 kilometres from Adelaide's city centre, making it an easy commute for homeowners or renters in the area," Sheppard said.

Heathcote in Sydney completes the top five. With a median price of $836,000, Heathcote is likely to witness a 7.1% gain this year.

Six suburbs in the upper 10 of the list have a median price of under $1m. This, Sheppard said, indicates the increasing importance of housing affordability for buyers.

The table below shows the top 20 suburbs that have the strongest price growth forecast this year: