Regional housing predictions for 2020 revealed

The report breaks down median house prices in the following regional areas for the next three years to June 2020:

NSW

Wollongong

The report states those who may be looking away from Sydney due to affordability issues may be deterred from Wollongong, as the area has price growth forecast for the next three years, with house prices rising by 5 per cent in 2017-18, then staying flat, to $770,000.

Newcastle

New infrastructure on the way for the redevelopment of the Newcastle Interchange, and the upcoming light rail line is predicted to further jobs and investment, with the current economic outlook for the Hunter being positive. Prices are predicted to rise by 7 per cent in 2017-18, then easing. Over the three years, median house prices are expected to rise to a cumulative 12 per cent to $635,000.

Victoria

Ballarat

Similar to Newcastle, Ballarat’s upcoming infrastructure is set to assist employment with the Eureka Stadium development, the Ballarat Link Road and the Ballarat West Employment Zone, which will therefore create demand for housing. The prediction for this area is a cumulative rise of 6 per cent to a median house price of $360,000.

Geelong

Geelong’s local economy is strong, however price growth is expected to be limited, with a rise of 4 per cent in 2017-18, then remaining steady to a median house price of $495,000, a 4 per cent cumulative rise.

Bendigo

Due to the completion of Bendigo Hospital’s first phase, small scale works are taking place, which is expected to not drive job growth and result in what the report calls limited median house price growth of 3 per cent in 2017-18, and a cumulative growth through to 2020 of 5 per cent to $350,000.

Queensland

Gold Coast

Median house growth is expected to be pushed mainly in 2017-17 after a surge in investment before the upcoming commonwealth games, then slowing down through to 2020, to a cumulative 6 per cent to $665,000. Median unit prices are forecast to trend similarly at 5 per cent to $425,000.

Toowoomba

There are multiple upcoming infrastructure projects in Toowoomba facilitating jobs growth, with the upcoming construction and late 2018 opening of the Second Range Crossing increasing traffic and the long-term projects with the Inland Rail Project. Median housing prices are expected to grow at about 2.5 per cent per annum over the three years, with the potential for higher growth.

Sunshine Coast

The Sunshine Coast is expected to see moderate growth, as the Sunshine Coast University Hospital has finished construction and is no longer contributing significantly to the local economy. A cumulative rise of 4 per cent in median housing prices is predicted.

Townsville

Little to no change is expected in Townsville over the next three years, remaining at an estimated $330,000.

Cairns

Cairns is expected to see moderate median house price growth at a cumulative 4 per cent to $430,000, but is being held back by an unemployment rate of 6.7 per cent, recorded back in March.

Mining centres

The report mentioned price growth would be minimal for the next few years, but “brave” investors could be entering these markets. The Isaac and Mackay areas are said to have bottom out and are looking towards growth, while Gladstone has reached a new low this year.

Western Australia

Mining centres

Sales volumes in Port Hedland increased when median prices peaked in 2013, with the report stating this indicated investors were selling, whether voluntary or forced, even though the market was poor. Karratha, however, has seen a price increase after its market bottoming out in the September quarter of 2016, which may be a sign of recovery. However, without any investment plans for these areas, the report states it is unlikely the market will return to its former self in the short term.

Tasmania

Launceston

The largest regional centre in North Tasmania, a median house price rise of a cumulative 7 per cent to $300,000 is predicted in the area. There may be bleed through of population and price growth from Hobart, but the report suggested fewer job prospects in Launceston will lead to only modest rises. However, the prospects of jobs from the redevelopment of the University of Tasmania Inveresk campus may give the area a boost.