NAB has released a new list of Australian suburbs that are expected to see above average price growth this year, according to the predictions of over 300 real estate agents and property developers.
NAB also reported that Brisbane will likely overtake Sydney’s strong performance in 2015. Brisbane is expected to reach 5.7% capital growth in house prices, while Sydney is expected to have 4.1%.
Melbourne's capital growth is estimated to be at 2.7%, Adelaide's at 2.1% and Perth's at 1.8%.
“With more signs emerging that the residential housing market is losing steam, NAB Economics expects average capital city house prices to cool to around 4% over the year to end-2015 and 2% over the year to end-2016,” the report stated.
“Our assessment of the market remains that house price growth will continue to moderate because of rising unemployment, sluggish household income growth, affordability concerns, cost of living pressures and high levels of household debt.”
“We are also forecasting two further interest rates cuts of 25 bps in March and 25 bps in August 2015 (bringing the official cash rate down to 2%) which should support house prices a little more than previously expected.”
NAB’s top 28 list is as follows:
NSW                                   QUEENSLAND                    SOUTH AUSTRALIA        
Eastwood                            Brisbane                              Mile End
Glebe                                  Gold Coast                          Norwood            
Manly                                  Toowoomba                        Parkside
Marrickville                          West End
Oran Park                            WA
Penrith                                Baldivis
Ryde                                   Belmont
Surry Hills                           Bentley
Sydney                               Mandurah
VICTORIA                          Subiaco               
Glen Iris