The top 20 suburbs for future property price rises

Online lender Well Money has identified the top 20 suburbs nationwide where prices are likely to rise in the near future.

The October quarterly Well Money Green Shoots Report identifies which suburbs still have property price growth  and which suburbs are currently showing the clearest signs that strong price growth is just around the corner. The data comes from property research consultancy Suburbtrends and is analysed by Well Money.

Well Money says the suburbs selected show the strongest combination of inventory levels decreasing over the past three months (time it would take to sell all houses/units in a particular location if houses/units kept selling at the current rate and no more were added to the market);  days on market decreasing over the past three months (median amount of time it takes to sell property in a particular location) and asking prices increasing over the past three months.

This report follows the recent Top 20 affordable suburbs to buy apartments which was also commissioned by Well Money and its July quarterly report on suburbs’ property price growth.

“For the October quarter, our report includes 12 metro and eight regional locations, as well as 14 house and six-unit markets,” said Well Money CEO Scott Spencer (pictured above). “We found inventory levels have fallen in every one of these 20 markets over the October quarter.”

Spencer said the reason inventory levels were such an important leading indicator was because they demonstrate what was happening with the balance of power in a particular market.

“When inventory levels are falling, it means buying conditions are becoming harder, which forces buyers to compete harder and puts upward pressure on prices. In all 20 of the suburbs, days on market have either remained unchanged over the past three months or fallen. When properties sell more quickly, that’s another sign of growing buyer competition.”

Spencer said vendors took notice when supply fell and demand rose. 

“As a result, in all but two of the 20 suburbs, vendors raised their asking prices over the quarter,” he said. “That is why the Well Money Green Shoots Report is such an insightful report. Instead of looking backwards, it uses in-depth property data analysis to forecast what’s likely to happen in the not-too-distant future.”

The Top 20 suburbs where prices are likely to rise: