These suburbs have stellar growth potential

Investors who are targeting major regions in Australia should consider looking at suburbs with consistent price potential despite the market cycle, according to a new report by Select Residential Property Research Group [SRP].

The study listed 10 suburbs across major cities and regions where prices could hit as much as 30% growth in the next three years.

"These suburbs all have a number of desirable features; however, one of the main reasons why house prices are forecast to grow is an imbalance of demand to supply," SRP director of research Jeremy Sheppard said.

Topping the list is Melbourne's Balaclava. Currently, the suburb has a hefty median price of $1.07m, and over the three-year period, it could grow by 30% to $1.4m.

"The thing is, even if prices end up only climbing by half as much as predicted, such is the nature of forecasting, it's still a great return on investment over a short period," Sheppard said.

Sydney's Narraweena came second, but it has the highest potential capital growth due to its median price of $1.3m. In the next three years, houses in this suburb could have a price tag of $1.7m.

Below is the list of suburbs and their three-year forecast growth:

Source: Select Residential Property Research Group