The diverse nature of the nation’s property market – and the impact of the resources boom – is reflected in the list of Australia’s top 50 growth suburbs for the year to 31 January (see table below).
Two-thirds of the top performers are close to capital cities; the rest are in regions dominated by nearby mining operations.
These regional locations range from the resource-driven towns of Kalgoorlie, Whyalla, Broken Hill and Clermont, to the seachange markets of Cable Beach near Broome in the north-west of WA, Booragul on the shores of Lake Macquarie and Alexandra Headland in the heart of the Sunshine Coast.
Many of these markets are moving from a low base, such as Broken Hill, where the median house price is still just $120,000.
The highest number of top-growth suburbs are within Adelaide, Australia’s fastest growing capital city market.
Over the past year, house values within the broader Adelaide market have increased by 29.5%.
Despite this rapid rate of growth, Adelaide still boasts the most affordable house prices of any capital city. Thirty per cent – 15 of the 50 top suburbs – are within the greater Adelaide metro area, further highlighting the city’s strong property market.
The central and northern Queensland coastline is also heavily represented in the growth list. Many of these seaside townships are being lifted by strong demand from the mining sector. Often resource workers will base their families along the coastline for the lifestyle benefits, while they work in the nearby Bowen Basin. Strong population growth along the Queensland coast is also a sold market driver.
With growth now slowing in most major markets, selecting locations for the best capital growth is again being driven by strategic considerations, and the importance of solid research is becoming paramount. Buyers are gaining the upper hand in the market and properties are taking longer to sell.
Historically, the best capital growth has been found in the inner-city markets, coastal markets and resource-intensive locations, and these markets are likely to continue to provide some protection from any downturn.
However there may be some counter-intuitive opportunities during 2008. The mortgage belts of Sydney have had a rough trot since the end of 2003 and the most strategically placed locations such as the Macarthur districts are now showing strong investment fundamentals: low prices, strong yields and well above average population growth.
Also, the fringe suburbs of each capital city, where undersupplied rental markets are creating high yields, are also becoming more popular.
For example, the middle-ring southern and western suburbs of Brisbane provide low housing prices coupled with strong rental markets. These suburbs include Wacol, Logan and Ipswich and are also well placed for investment.
Rental yields in these outer suburbs are typically above average and there is growing demand from both investors and first-home buyers.
|
Australia’s top 50 growth suburbs |
|||||||||||
|
Rank |
Suburb |
No. sold |
Median price |
12 month growth |
Five-year average |
Weekly |
Gross |
||||
|
1 |
Mont Albert, Vic |
46 |
$1,035,000 |
50.0% |
12.5% |
$430 |
2.2% |
||||
|
2 |
Glen Huntly, Vic |
28 |
$753,250 |
49.9% |
12.5% |
$465 |
3.2% |
||||
|
3 |
Castlecrag, NSW |
58 |
$1,810,000 |
49.0% |
11.2% |
$800 |
2.3% |
||||
|
4 |
Underdale, SA |
44 |
$455,000 |
48.0% |
11.0% |
$315 |
3.6% |
||||
|
5 |
South Hedland, WA |
73 |
$380,000 |
47.6% |
13.7% |
$750 |
10.3% |
||||
|
6 |
Carlton, Vic |
74 |
$750,000 |
47.1% |
12.9% |
$420 |
2.9% |
||||
|
7 |
Ingham, Qld |
75 |
$235,000 |
46.9% |
11.2% |
$183 |
4.0% |
||||
|
8 |
Cable Beach, WA |
33 |
$800,000 |
46.8% |
18.1% |
$800 |
5.2% |
||||
|
9 |
Collinsville, Qld |
60 |
$212,500 |
46.6% |
22.5% |
$380 |
9.3% |
||||
|
10 |
Pasadena, SA |
42 |
$443,000 |
45.2% |
11.1% |
$295 |
3.5% |
||||
|
11 |
Echunga, SA |
26 |
$377,500 |
45.2% |
11.0% |
$220 |
3.0% |
||||
|
12 |
Fig Tree Pocket, Qld |
54 |
$850,000 |
44.7% |
14.6% |
$480 |
2.9% |
||||
|
13 |
Broken Hill, NSW |
539 |
$120,000 |
44.6% |
12.5% |
$150 |
6.5% |
||||
|
14 |
Glen Eden, Qld |
49 |
$375,000 |
44.2% |
17.8% |
$315 |
4.4% |
||||
|
15 |
Calliope, Qld |
83 |
$360,000 |
44.0% |
12.3% |
$270 |
3.9% |
||||
|
16 |
Semaphore South, SA |
23 |
$540,000 |
44.0% |
14.8% |
$360 |
3.5% |
||||
|
17 |
Highgate, SA |
21 |
$705,000 |
43.6% |
13.7% |
$410 |
3.0% |
||||
|
18 |
Northbridge, NSW |
96 |
$2,047,000 |
43.3% |
12.3% |
$800 |
2.0% |
||||
|
19 |
Elizabeth, SA |
22 |
$208,250 |
41.7% |
11.9% |
$195 |
4.9% |
||||
|
20 |
South Brighton, SA |
55 |
$445,800 |
41.5% |
11.0% |
$295 |
3.4% |
||||
|
21 |
Alexandra Headl’d, Qld |
40 |
$747,500 |
40.8% |
15.9% |
$380 |
2.6% |
||||
|
22 |
Bronte, NSW |
79 |
$2,025,000 |
39.7% |
13.1% |
$670 |
1.7% |
||||
|
23 |
Highgate Hill, Qld |
55 |
$781,500 |
39.3% |
14.4% |
$340 |
2.3% |
||||
|
24 |
Clermond, Qld |
48 |
$285,000 |
39.0% |
16.6% |
$340 |
6.2% |
||||
|
25 |
Whyalla, SA |
72 |
$285,000 |
39.0% |
11.7% |
$350 |
6.4% |
||||
|
26 |
Gilberton, SA |
17 |
$778,000 |
38.9% |
8.9% |
$450 |
3.0% |
||||
|
27 |
Kyle Bay, NSW |
11 |
$1,218,000 |
38.8% |
12.8% |
$440 |
1.9% |
||||
|
28 |
Bayview, NT |
21 |
$680,000 |
38.8% |
21.0% |
$675 |
5.2% |
||||
|
29 |
Mont Albert North, Vic |
33 |
$735,000 |
38.7% |
14.7% |
$400 |
2.8% |
||||
|
30 |
Kensington Gardens, SA |
35 |
$692,000 |
38.4% |
13.6% |
$350 |
2.6% |
||||
|
31 |
Crystal Brook, SA |
12 |
$166,000 |
38.3% |
12.0% |
$165 |
5.2% |
||||
|
32 |
Ivanhoe East, Vic |
25 |
$1,051,000 |
38.3% |
11.8% |
$490 |
2.4% |
||||
|
33 |
Palmyra, WA |
19 |
$795,000 |
38.3% |
15.8% |
$350 |
2.3% |
||||
|
34 |
Leabrook, SA |
16 |
$1,005,000 |
38.1% |
15.9% |
$340 |
1.8% |
||||
|
35 |
Wacol, Qld |
27 |
$295,000 |
38.0% |
15.9% |
$260 |
4.6% |
||||
|
36 |
Abbotsford, Vic |
65 |
$614,000 |
37.9% |
11.6% |
$420 |
3.6% |
||||
|
37 |
Glenelg, SA |
20 |
$720,500 |
37.9% |
11.3% |
$328 |
2.4% |
||||
|
38 |
Middle Park, Vic |
63 |
$1,241,000 |
37.9% |
13.2% |
$530 |
2.2% |
||||
|
39 |
Cumberland Park, SA |
35 |
$497,000 |
37.7% |
11.5% |
$320 |
3.3% |
||||
|
40 |
Unley, SA |
49 |
$755,000 |
37.5% |
13.3% |
$430 |
3.0% |
||||
|
41 |
Bellfield, Vic |
16 |
$398,000 |
37.2% |
15.4% |
$260 |
3.4% |
||||
|
42 |
Hyde Park, Qld |
34 |
$440,500 |
36.8% |
13.5% |
$280 |
3.3% |
||||
|
43 |
Seddon, Vic |
55 |
$500,000 |
36.6% |
14.4% |
$320 |
3.3% |
||||
|
44 |
Booragul, NSW |
19 |
$277,000 |
36.5% |
11.2% |
$230 |
4.3% |
||||
|
45 |
Kalgoorlie, WA |
63 |
$275,000 |
36.1% |
10.9% |
$330 |
6.2% |
||||
|
46 |
Wonga Park, Vic |
37 |
$659,000 |
35.9% |
12.4% |
$345 |
2.7% |
||||
|
47 |
Ethelton, SA |
34 |
$326,000 |
35.8% |
13.3% |
$290 |
4.6% |
||||
|
48 |
Hectorville, SA |
47 |
$400,000 |
35.6% |
12.1% |
$273 |
3.5% |
||||
|
49 |
South Townsville, Qld |
46 |
$403,750 |
35.5% |
16.0% |
$280 |
3.6% |
||||
|
50 |
Whyalla, SA |
70 |
$250,500 |
35.4% |
10.6% |
$350 |
7.3% |
||||
Tim Lawless is research director with RP Data.
This story first appeared in Eureka Report
ABOUT THE AUTHOR
COMMENTS
SmartCompany is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while it is being reviewed, but we’re working as fast as we can to keep the conversation rolling.
The SmartCompany comment section is members-only content. Please subscribe to leave a comment.
The SmartCompany comment section is members-only content. Please login to leave a comment.