John McGrath - Australia's Top 50 Affordable Suburbs For Growth

John McGrath - Australia's Top 50 Affordable Suburbs For Growth

John McGrath
John McGrath
07/09/2020 | 3 MIN READ

Affordability is especially key for first home buyers and first-time investors, so let’s take a look at the top 50 best performing affordable suburbs nationwide from a new report published by CoreLogic. 


Affordable suburbs were defined as having a median price of less than $500,000 and were ranked according to capital growth over the past 12 months. They also had to show good historical growth over three years and five years to make the list. 

At a Glance:

  • No 1 performer was Broken Hill in NSW (Houses), where the median value has increased by 30.7 per cent over the past 12 months to $119,156
  • No 1 performer in Victoria was Orbost (Houses) in East Gippsland
  • No 1 performer in Queensland was coal mining town, Moranbah (Houses), where the median value rose 23.9 per cent to $238,576
  • The No 1 performer was Broken Hill in NSW (Houses), where the median value has increased by 30.7 per cent over the past 12 months to $119,156.


Its medium term growth is impressive at 47 per cent over three years and 39 per cent over five years. 


Dubbed the ‘Silver City’, Broken Hill is Australia’s oldest mining town and the birthplace of BHP (Broken Hill Proprietary) in 1885.


Today, another mining company, Perilya, is reviving the mining industry using modern technology and machinery to re-start dormant mines and discover new ones. 


Since 2002, Perilya has been expanding in Broken Hill, which has brought long term jobs and investment to the area.


Renewable energy projects and other infrastructure projects are also underway.


This has created a sense of security over the long term for local workers.  


A huge capital injection from the state government’s Regional Growth Fund, established in 2017, is also revitalising the town with upgrades to the public pool, skate park and tennis courts; and the building of a recycling centre and a motor sport facility.


The airport is getting an upgrade, too. 


Along the rest of the East Coast, the No 1 performer in Victoria was Orbost (Houses) in East Gippsland.


Values rose 25.6 per cent to a median $201,502 over the year.


Historical growth was 25.2 per cent over three years and 28.2 per cent over five years. 


Orbost is a small historical town in Snowy River country.


It’s the service centre for the beef, cattle and sawmilling industries but also has an emerging tourism industry, with several festivals and popular cycling competitions bringing new money into its economy in recent times.  


The No 1 performer in Queensland was coal mining town, Moranbah (Houses), where the median value rose 23.9 per cent to $238,576.

The median value increased by 37.5 per cent over three years and 17.1 per cent over five years.


The lower growth over five years reflects the mining sector’s downturn in 2017. 

Top Performing 50 Affordable Suburbs of Australia 


#1 Broken Hill, NSW (Houses)


#2 Orbost, VIC (Houses) 


#3 Stawell, VIC (Houses) 


#4 Moranbah, QLD (Houses) 


#5 Dalby, QLD (Houses) 


#6 Townsville City, QLD (Apartments)


#7 Youngtown, TAS (Houses) 


#8 Notting Hill, VIC (Apartments)


#9 Sale, VIC (Apartments)


#10 Portland, VIC (Houses) 


#11 Oakey, QLD (Houses) 


#12 Swan Hill, VIC (Houses) 


#13 Deniliquin, NSW (Houses) 


#14 Corowa, NSW (Houses) 


#15 Numurkah, VIC (Houses) 


#16 Elermore Vale, NSW (Apartments)


#17 Howlong, NSW (Houses) 


#18 Warrnambool, VIC (Apartments)


#19 Prospect Vale, TAS (Apartments)


#20 Tocumwal, NSW (Houses) 


#21 Redcliffe, QLD (Apartments)


#22 Devonport, TAS (Apartments)


#23 Primrose Sands, TAS (Houses) 


#24 St Helens, TAS (Houses) 


#25 Bairnsdale, VIC (Houses) 


#26 Ararat, VIC (Houses) 


#27 Gosford, NSW (Apartments)


#28 Highton, VIC (Apartments)


#29 Trevallyn, TAS (Houses) 


#30 Newnham, TAS (Houses) 


#31 North Ward, QLD (Apartments)


#32 Mount Gambier, SA (Apartments)


#33 Nanango, QLD (Houses) 


#34 Somerset, TAS (Houses) 


#35 Camperdown, VIC (Houses) 


#36 Yarrawonga, VIC (Houses) 


#37 Cobram, VIC (Houses) 


#38 Noble Park, VIC (Apartments)


#39 Warracknabeal, VIC (Houses) 


#40 Newstead, TAS (Houses) 


#41 Longford, TAS (Houses) 


#42 Footscray, VIC (Apartments)


#43 Horsham, VIC (Houses) 


#44 Rosebery, TAS (Houses) 


#45 Moama, NSW (Houses) 


#46 Warrnambool, VIC (Houses) 


#47 Prospect Vale, TAS (Houses) 


#48 Norwood, TAS (Houses) 


#49 Tweed Heads, NSW (Apartments)


#50 Myrtleford, VIC (Houses) 


A word of warning on investing in mining towns. Mining is a cyclical industry, so housing prices in these areas tend to have booms and busts. For most investors, it’s far better to invest in areas with a diversity of industries and jobs, some lifestyle appeal and good local amenities for greater stability. 


While COVID-19 has caused some price softening along the East Coast this year, latest official numbers show the rate of decline has eased over the past two months in Brisbane and Sydney and stayed roughly the same in Melbourne, despite Stage Four restrictions being imposed.  


Sydney recorded a fall in home values of -0.5 per cent in August following an -0.9 per cent drop in July. Brisbane had a negligible -0.1 per cent decline in August and -0.4 per cent in July. 


In Melbourne, where no real estate offices are open and and no inspections of properties for sale are allowed during Stage Four restrictions, home values dipped -1.2 per cent in both months. The total decline in Melbourne home values caused by the virus to date is -4.6 per cent. 


Regional markets have continued to outperform their capital city counterparts across the largest states. The benefit of distance from the cities and a boost in demand from newly appointed work-from-homers seeking to relocate for lifestyle and cheaper housing is keeping regional prices robust. 

 

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters. 

 

This article originally appeared in The Real Estate Conversation (September 7, 2020)

 

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