As economists make the dire prediction that Australia could fall into a recession this year, a number of suburbs have been marked as safe from any potential downturn.
Property advisory company Hello Haus looked at markets across the country where house values would either hold steady or increase in the event of a recession.
Of the top nine locations predicted to weather the storm, four are located in NSW.
Hello Haus founder Scott Aggett said the suburbs were broken down into three different price brackets – less than $750,000, $1.5m to $2.5m, and over $2.5m.
Mr Aggett said Australian property values over the past year had fallen due to interest rate rises, with East Albury ranking third on the list and the most recession-proof suburb in NSW.
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“Located three hours’ drive from Melbourne, six hours from Sydney, nine hours from Adelaide and 3.5 hours from Canberra, Albury is positioned within relatively easy access to 75 per cent of the Australian population.
“There are a myriad of property types available for purchase from contemporary and established dwellings through to attached housing. 66 per cent of the suburb’s population are homeowners.
“The median house price of $700,000 would secure a lowset three or four-bed, one-bath home on around 800 square metres of land.”
There were a number of factors that cemented a suburb as being recession-proof, including the location, the proportion of resident homeowners, and the number of days on market below 60.
This also meant that the proportion of resident homeowners exceeded 55 per cent of an individual suburb’s total population, as well as recording growth figures about 7 per cent over a 10 year period.
Leichhardt ranked seventh on the list as it offers a low-entry level into the Inner West in Sydney’s property market.
It also has benefited from infrastructure spending, including the $3.9bn Rozelle interchange, and the $750m Royal Prince Alfred Hospital redevelopment.
“For properties over $1.5m, the focus shifts to capital growth while maintaining a reasonable level of cash flow with a gross rental yield greater than two per cent.”
“All the areas we’ve chosen are within a reasonable commute of a capital city or major population centre. We’ve also sought locations where infrastructure spending would help drive the demand for property and inject dollars into the local economy.”
Bulli ranked eighth on the list and had the highest compound growth rate over 10 years in NSW, at 11 per cent. It was also popular for its beaches and a strong draw card for new residents, accessible via the Princes Hwy, Princess Hwy.
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TOP RECESSION PROOF SUBURBS IN AUSTRALIA
Banksia Park (South Australia)
East Toowoomba (Queensland)
East Albury (New South Wales)
Burleigh Waters (Queensland)
Reedy Creek (Queensland)
Leichhardt (New South Wales)
Bulli (New South Wales)
Lilyfield (New South Wales)
Source: Hello Haus