2016's top 15 forecast investor growth localities: APM

Australian Property Monitors recently released its list of the best 625 suburbs across Australia with the suggestion investors should exercise caution in the coming year.

There are just 15 suburbs out of the 625 predicted to have double digit growth, headlined perhaps by the surprise inclusion of New South Wales' popular beachside town, Byron Bay.

Balwyn, Box Hill North and Toorak are the only three suburbs that offer double digit growth for units as well as for houses.

Released ahead of the recent Chinese stockmarket turmoil, APM's housing market expert, Dr Andrew Wilson cautioned the great Sydney boom had clearly ended.

"The peak of the cycle for both Sydney and Melbourne was June," he advised.

More recently he noted “it will be a flat year for Sydney property prices this year.”

“I’ve been predicting up to a 4% property price growth rate in Sydney, and about the same nationally.

"Economic circumstances are now set to deteriorate and it will be a year of circumspection."

Wilson is one of a growing number of experts cautioning investors against expecting bonanza-sized capital returns from property in 2016 as things cool down.

The APM forecast in the AFR Smart Investor magazine even suggested it was why they created the list.

"If the experts are right and heat does come out of the market, minor differences in asset quality will start to produce very different results.

"The choice between one postcode and the one adjacent could lead to years of regret," the article said, adding their list of the most investable suburbs would be an important weapon for any reader seeking to add to their property portfolio.

The data ranks suburbs according to the price growth over the year to August 31, puts that in context of a three-year growth rate, adds a median price and average yields and then includes APM's exclusive 12-month forecast.

These predictions take into account growth characteristics at a national level, a capital city or regional level and then at a suburban level. 

They include macroeconomic inputs such as monetary policy and confidence levels, while also taking into account more granular considerations that vary from suburb to suburb.

There isn't a single suburb in Queensland, South Australia, Australian Capital Territory, West Australian or Northern Territory that envisaged to fetch 10 per cent or more.

Victoria dominates the list of suburbs which have a 10 per cent or higher 12 month forecast, with only one suburb coming from all six other states.

Balwyn - 12%

Box Hill - 12%

Box Hill North - 12%

Byron Bay - 12%

Doncaster East - 12%

Glen Waverley - 12%

Mount Waverley - 12%

Templestowe - 12%

Templestowe Lower - 12%

Balwyn North - 10%

Bentleigh - 10%

Carnegie - 10% 

Fitzroy North - 10%

Glen Huntly - 10%

Toorak  - 10%