House prices in cheaper suburbs are tipped to keep rising next year – even as the broader Australian property market slows.
As banks raise their fixed mortgage rates, Westpac is expecting an Australian property slowdown over the next two years.
While prices are set to grow by 22 per cent this year that will slow to 8 per cent in 2022 before falls of 5 per cent are predicted in 2023.
However, discount lender Well Home Loans said outer suburbs and satellite cities should continue to experience growth.
That’s because sale times in these postcodes are decreasing as supply tightens.
Most homes on their top 20 list are affordable for average-income earners who don’t have a six-figure salary, which means they can service the loan without struggling to pay their other bills.
House prices in cheaper suburbs are tipped to keep going up in 2022 even as the broader Australian property market slows. Davoren, in Adelaide’s north has a median house price of $284,500 which is less than half South Australia’s median house price of $591,558. Houses in this suburb are selling in 40 days
Ipswich, south-west of Brisbane, topped the Well Home Loans Green Shoots Report list.
Affordable postcodes tipped to grow in 2022
1. Deebing Heights, Ipswich: $424,952
2. Springfield, Ipswich: $536,000
3. Jimboomba, Logan: $457,435
4. Davoren Park, Adelaide: $284,500
5. Huntly, Bendigo: $401,648
6. Morphettville, Adelaide: $$587,510
7. Melton South, Melbourne: $470,000
8. Gawler East, Adelaide: $390,000
9. Wilton, Macarthur NSW: $815,000
10. Denham Court, Sydney: $845,000
Source: Well Home Loans Greens Shoots Report for October 2021
Median prices there are also a lot cheaper than greater Brisbane’s median house price of $731,392 in October, CoreLogic data showed.
Prices are also well below the national median property price of $686,339, a point where an average, full-time salary earner on $90,329 a year, with a 20 per cent mortgage deposit, would owe six times their income.
The Australian Prudential Regulation Authority, the banking regulator, considers a debt-to-income ratio of six or more to be mortgage stress.
Deebing Heights has a median price of $424,952 being 47km from the centre of Brisbane, with homes typically sold in 51 days in October compared with 60 days three months earlier.
Nearby Springfield came second with a mid-point house price of $536,000, with houses here sold in 39 days instead of 51.
Jimboomba, in the neighbouring Logan council area, came third …….