With the Sydney and Melbourne booms dominating national headlines over the past few years, you’d think every other market in the country is in the doldrums. But that’s not true.
As the following data from CoreLogic shows, there are plenty of suburbs across Australia where home owners and investors are making great money through property, even when they are located in a capital city that has experienced little overall growth in recent times.
These figures also show that despite both Sydney and Melbourne slowing down, premium suburbs with more demand than supply are still experiencing price growth.
So, let’s take a look at those suburban areas that have performed best in each state over the 12 months to May 2018.
Top growth suburbs by state
In the Australian Capital Territory, the first six suburbs of our top 10 are all in the desirable inner north or the fast-growing outer Gungahlin region. This part of Canberra is set to benefit from the brand-new light rail, which will commence operations in December. The light rail provides direct access to the CBD for Gungahlin residents via the inner north.
Most of our top performers are in Melbourne, however, the Geelong area of Newcomb makes the list at No 8. Geelong is about 70km from Melbourne and is Australia’s leading regional city for house price growth. You can buy a house in Geelong for about a quarter of a million dollars less than Melbourne and enjoy spectacular beaches, buzzing café and shopping precincts and a rising number of jobs in service industries.
3. New South Wales
Regional areas dominate the top 10 performing suburbs, which is no surprise, given the ripple effect from Sydney is well underway.
The top 10 suburbs were a mixed bag representing areas in Brisbane and its outer regions, the Gold Coast, the Sunshine Coast and Townsville. Only one suburb – Hamilton, is in Brisbane city, which reflects the stronger demand seen in the state’s regional areas of late.
5. Western Australia
The top 10 comprised eight suburbs in Perth and two in the Pilbara region. Claremont and Applecross are listed twice due to strong capital growth amongst both houses and apartments.
6. South Australia
Adelaide suburbs dominated the top 10, with Norwood breaching the million dollar median mark over the past year.
The top 10 suburbs were all in Greater Hobart bar Bridport, in the Dorset council area in the state’s north east. Hobart has had two years of very solid capital growth and has led the capitals over the past year. Some of these suburbs have extremely short days on market – as little as seven in Bellerive (apartments) and Claremont (houses) and only 13 for the top growth suburb of Blackmans Bay.
8. Northern Territory
Growth was only mild – less than 5% across the board for the top 10 performing suburbs, with some even in negative territory.
Source: CoreLogic, 12 months to May 31, 2018, All properties, Suburbs with 40 sales minimum over 12 months
One of the great things about property is there are always opportunities if you’re willing to put in the work to find out which suburbs have the best prospects for future growth and why.
There is certainly a world outside ‘the big two’ capital city markets, with plenty of property success stories to tell in areas where median prices are well below Sydney and Melbourne.
You will find a few commonalities among top performing suburbs, such as new or planned infrastructure, high performing schools and lifestyle amenities such as beaches, cafes and proximity to work centres.
Making money in real estate begins and ends with good quality research. To help you, this type of data above and much more is easily available from suppliers such as CoreLogic and realestate.com.au.
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