John McGrath - Australia's Top 50 Suburbs For Capital Growth
CoreLogic has identified the Top 50 suburbs nationally for capital growth, in a new report released this month.
The No 1 performer was apartments in Crows Nest, NSW, on Sydney’s Lower North Shore. The median apartment value had a spectacular rise over the year, up 29 per cent to $1,012,549.
Over the long term, apartment values rose 3.5 per cent over three years and 29.4 per cent over five years.
At a Glance:
- Crows Nest topped the list of growth suburbs with a 29 per cent growth
- New infrastructure and close proximity to the Sydney CBD has helped make Crows Nest popular
- In Victoria the popular suburb with a growth of 28.9 per cent is Bonbeach
- Crows Nest is being revitalised with a new underground metro train station and a new shopping and café precinct above it.
Operational from 2024, the train link will give locals a direct 5 minute connection to Barangaroo, 4 minutes to Chatswood CBD and 7 minutes to Martin Place.
The area is very popular with the younger demographic due to its location close to the city and its large, vibrant village with lots of shops, cafes and restaurants.
More than 60 per cent of Crows Nest’s residents are aged 20 to 49 years.
The dominant household type is childless couples (52.6 per cent), who typically choose apartment living. No wonder buyers see potential for growth!
Along the rest of the East Coast, the No 1 performer in Victoria was houses in Bonbeach.
Values rose 28.9 per cent to a median $1,010,710 over the year.
Historical growth was 6 per cent over three years and 42.4 per cent over five years.
Bonbeach is popular with executive couples and families.
What’s interesting here is that 43.8 per cent of the area’s housing is semis or terraces, which provide a lower entry price point for young couples whose budgets can’t stretch to freestanding houses.
The No 1 performer in Queensland was houses in Hamilton.
The median value increased by 22.2 per cent over the past 12 months to $1,451,092.
Growth over three years was 2.5 per cent and over five years it was 10.9 per cent.
Only 1 in 5 properties in Hamilton are freestanding houses, so competition is strong when quality homes come up for sale, especially if they are close to Brisbane River or have river views.
The report ranked suburbs by their capital growth over the past 12 months (minimum 50 sales) but they also had to show good historical growth over three years and five years to make the list.
Top 50 Performing Suburbs of Australia
#1 Crows Nest, NSW (Apartments)
#2 Bonbeach, VIC (Houses)
#3 Carnegie, VIC (Houses)
#4 Templestowe Lower, VIC (Houses)
#5 Cammeray, NSW (Apartments)
#6 Mount Colah, NSW (Houses)
#7 Earlwood, NSW (Houses)
#8 North Bondi, NSW (Houses)
#9 Caulfield South, VIC (Houses)
#10 Bondi, NSW (Houses)
#11 Moonee Ponds, VIC (Houses)
#12 Narrabeen, NSW (Apartments)
#13 Kellyville, NSW (Houses)
#14 Thirroul, NSW (Houses)
#15 North Bondi, NSW (Apartments)
#16 Sale, VIC (Apartments)
#17 Cheltenham, VIC (Houses)
#18 Bulleen, VIC (Houses)
#19 Oak Park, VIC (Houses)
#20 Elsternwick, VIC (Houses)
#21 South Yarra, VIC (Houses)
#22 Murrumbeena, VIC (Houses)
#23 Queenscliff, NSW (Apartments)
#24 St Leonards, NSW (Apartments)
#25 Hunters Hill, NSW (Houses)
#26 Berala, NSW (Houses)
#27 Bentleigh East, VIC (Houses)
#28 Prospect Vale, TAS (Apartments)
#29 Mentone, VIC (Houses)
#30 Ringwood East, VIC (Apartments)
#31 Avalon Beach, NSW (Houses)
#32 Artarmon, NSW (Apartments)
#33 Forestville, NSW (Houses)
#34 Belrose, NSW (Houses)
#35 Willoughby, NSW (Houses)
#36 Belmore, NSW (Apartments)
#37 Lane Cove, NSW (Apartments)
#38 Bilgola Plateau, NSW (Houses)
#39 Portland, VIC (Houses)
#40 Richmond, VIC (Houses)
#41 Collaroy, NSW (Apartments)
#42 Bentleigh, VIC (Houses)
#43 Donvale, VIC (Apartments)
#44 Dural, NSW (Houses)
#45 Shepparton, VIC (Apartments)
#46 Unanderra, NSW (Houses)
#47 Collaroy Plateau, NSW (Houses)
#48 Naremburn, NSW (Apartments)
#49 Hamilton, QLD (Houses)
#50 Lindfield, NSW (Houses)
This report is a great tool for investors because it presents the best suburbs for growth over the long term.
Investors always want to buy in the next ‘hot spot’ because there’s greater chance of strong short term gains.
But you have to do a lot of research to identify those up-and-coming areas that are on the cusp of a growth spurt.
The safer bet is to select suburbs with a history of steady, reliable growth over the long term.
If there are factors such as new infrastructure that are going to propel price growth even higher than historical averages, like there is in Australia’s best performing suburb, Crows Nest, that’s even better.
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 (August 24, 2020)
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