North West suburbs Burnie and Devonport have high potential for property pricing growth this year, according to a property analyst.
Simon Pressley, Propertyology head of research, said that on the balance of probabilities, there could be “normal property market performance” in many suburbs across Australia, including a -2% to -5% change in values in weaker areas in Victoria or NSW and a 2% to 7% price growth in areas with strong fundamentals.
“A majority of capital city and regional locations will produce house price growth in 2023,” Pressley told News Corp Australia Network.
According to PropTrack December 2022 figures, Tassie North West Coast had a strong market performance, including a 19% house price growth in Devonport, and 20% for units.
It took 31-36 days to transact a house or unit in Devonport, the city’s days on market data showed.
In East Devonport, the house price median saw an annual 24% increase while units fell by 1.5%. The time on market here was longer at 43 and 45 days.
In the Burnie region, PropTrack data showed that house values in Burnie climbed 17% while units remained steady with a -0.7% change, with houses taking an average 47 days to sell and units 38. South Burnie houses increased by 28% in 2022, while Upper Burnie’s median lifted by 14%, with the latter taking 53 days to sell and the former not having enough data for a result.
Similar to Launceston and Hobart’s vacancy rates, rental availability at North West Coast sits at a low 1.1%, REIT figures showed.
In his market outlook report, Pressley said the median house price in 130 of Australia’s 150 largest townships has jumped by 40% (or more) over the last three years.
“A majority of households have never been in a stronger financial position than right now,” he said.
The Reserve Bank of Australia said households have $1.455bn cash at their disposal in facilities like mortgage offset accounts, redraws, and term deposits.
Australian banks, meanwhile, confirmed that one in three mortgage holders are two or more years ahead of scheduled loan repayments, while credit ratings agency S&P said only 0.58% of home loans are in arrears, News Corp Australia Network reported.
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