Batemans Bay ranks as third best prospect for price growth to 2025: Residex report
Batemans Bay on the NSW South Coast has made it to the top three localities expected to grow the most in Australia over the next eight years, according to a new report.
The latest Residex Predictions Report list identifies 109 suburbs and towns nationally that are most likely to deliver better than average growth over the next five and eight years.
The report ranks the top 109 suburbs where predicted capital growth is forecast to be between an average of 4.0 percent and 11.1 percent per annum over the next five years, and between an average of 5.1 percent and 8.4 percent per annum over the next eight years.
It is a valuable starting point for property investors researching where to buy next, Kylie Davis, Residex head of marketing said.
“The suburbs listed in the report are the ones that we would expect to perform well in future years based purely upon the statistical patterns that the Residex algorithm has identified in their historical growth rates,” said Tim Lawless, CoreLogic’s Asia Pacific Research Director.
“Residex’s predictive model doesn’t allow for new developments, changing demographic patterns, improved infrastructure or any other such factors and these can have a substantial impact on the capital gain prospects across a suburb or town.”
Based on Residex’s predictive model, Batemans Bay (postcode 2536) came in third position with an average of 8.29% growth anticipated per year over the next eight years. The top two positions were taken by Gordon in ACT and Pemulwuy in NSW.
The median house value in Batemans Bay is currently $340,000 with an annual average growth of 2.57 percent.
For that median price, a two-bedroom cottage at 15 Bent Street Batemans Bay NSW 2536 has been listed for sale at $350,000.
Similarly, another two-bedroom house at 2/6 Pacific Street Batemans Bay NSW 2536 is on the market for $359,000.
Among those that sold recently around the median prices, there was a three-bedroom house at 3/34 High Street, Batemans Bay that sold for $345,000 in October 2016.
Another three-bedroom house at 23 Golf Links Drive, Batemans Bay sold in November 2016 for $350,000.
The December report is the first Predictions Report compiled by Residex since the business was purchased by CoreLogic in 2016, and uses the combined data resources of the two businesses.
The data is drawn from median values using the CoreLogic automated valuation model, rather than median sales prices. This is an important distinction as it takes into account the value of all properties within the suburb, not just those that have transacted across the period. This makes it a more reliable and stable indicator of values across the region.
The suburb of Pemulwuy in NSW held the number two spot with house values expected to provide an average of 8.34% growth per year over the next eight years. Batemans Bay on the NSW South Coast came in third position with an average of 8.29% growth anticipated per year over the next eight years. Houses in Middle Swan ranked fourth while houses in Brighton, Tasmania ranked fifth.
In the national report, 107 suburbs had top predictions for houses while there were two suburbs for units. Across the country, 60 of the top 109 suburbs were in regional Australia and 49 were in city areas.
Broken down by state, 16 were in the ACT, 39 suburbs were within NSW, 15 were in Queensland, there was 1 from SA, 13 from Tasmania, 6 from Victoria and 19 from WA. Separate reports are also available for Victoria, NSW and Queensland.
Lawless said the report was not definitive and other suburbs could also perform strongly. Investors should conduct their own additional research before deciding to commit to a purchase.
“As with any forward looking analytic, the reports are predictions, not a guarantee of future growth, and taking into consideration your own personal circumstances is vital,” Mr Lawless said.
Get your full copy of the Residex Predictions Report here for $195 per state or $250 for the national report.
