+500% price increases: suburbs where growth just won’t quit

By |

With the help of Residex, Your Investment Property has dug through the record books to find which areas have had the best long-term capital growth over the last 20 years. The quest was to uncover which suburbs have seen the largest and most consistent long-term property prices increases, taking into account one factor: will that growth continue? 

 

DRUMMOND COVE HOUSES, WA

>1695% total capital growth in 20 years

>15.53% average annual growth over 20 years

>$546,266 in capital gains over 20 years

>Median house price 18 times higher

 Growth triggers:

  • Proximity to Geraldton port (15km)
  • Proximity to proposed new port
  • Resources boom

Has it peaked? Probably not. Growth was consistent through out the 90s and 2000s, and though growth slowed over 2009, average annual growth was a healthy 10% for both 2010 and 2011. With mining activities within the area set to continue in the years ahead, Drummond Cove’s property values should fare well. 

 

TAMARAMA UNITS, NSW

>418% total capital growth over 20 years

>8.57% average annual growth over 20 years

>$725,838 in capital gains over 20 years

>Median unit price quintupled

 Growth triggers:

  • Desirable beach side location
  • Prestige suburb
  • Proximity to Sydney CBD
  • Low vacancy rate of just 1.2%

Has it peaked? Sydney’s Eastern suburbs are suffering at the moment, however, a long history of capital growth in Tamarama, coupled with its well-sought after seaside settings, suggest high growth in the Tamarama unit market will be pretty assured. 

 

MORANBAH HOUSES, QLD

>1474% total capital growth over 20 years

>14.78% average annual growth over 20 years

>$492,110 in capital gains over 20 years

>Median house price 15 times higher

 Growth triggers:

  • Coal mining centre
  • Growing population
  • Extremely tight rental market: vacancy rate at just 0.2%
  • High proportion of owner occupiers at 42%

Has it peaked? Unlikely. There’s plenty of growth left in the area. Demand from investors and homeowners continue to rise and prices are still growing rapidly thanks to the large number of coal projects and limited number of housing in the area.

 

QUEANBEYAN UNITS, NSW

>370% capital growth over 20 years

>8.05% average annual growth over 20 years

>$238,157 in capital gains over 20 years

>Median unit price grew fivefold

 Growth triggers:

  • Diverse economy
  • Proximity to Canberra
  • Strong employment market
  • Low vacancy rate at 1.2%
  • Easy access to schools, hospitals and entertainment areas

Has it peaked? It’s unlikely. Average annual capital growth remains good, though prices might rely heavily on the level of public sector jobs in nearby Canberra.

  

DAMPIER HOUSES, WA

>1580% total capital growth in 20 years

>15.15% average annual growth over 20 years

>$1,039,228 in capital gains over 20 years

>Median house price 17 times higher

 Growth triggers:

  • Port town close to resources boom
  • Leverages off growth in nearby Karratha

Has it peaked? Like many WA mining towns, house prices dipped during 2008 and 2009. Capital growth has since recovered and average annual growth was at 20% in 2011, suggesting there might be more growth ahead.

  

BONDI BEACH UNITS, NSW

>368% capital growth over 20 years

>8.02% average annual growth over 20 years

>$518,147 in capital gains over 20 years

>Median unit price almost quintupled

 Growth triggers:

  • Desirable, world famous beach location
  • Good links to the Sydney CBD
  • Low vacancy rate at 1.2% 

Has it peaked? Like Tamarama, capital growth in Bondi Beach might suffer along with Sydney’s other Eastern suburbs in the short-term, but as the economy picks up the long-term growth prospects of its unit market are likely to remain good.

 

ALBERT PARK HOUSES, VIC

>583% capital growth over 20 years

>10.08% average annual growth over 20 years

>$1,142,165 in capital gains over 20 years

>Median house price grew almost sevenfold

 Growth triggers:

  • Desirable inner city location
  • Prestigious neighbourhood
  • Scarcity factor

Has it peaked? Despite the ongoing decline in prestige market property purchases, Albert Park’s rapid growth looks set to continue, thanks to strong underlying demand.

 

 ALPHINGTON HOUSES, VIC

>566% total capital growth over 20 years

>9.95% average annual growth over 20 years

>$951,000 in capital gains over 20 years

>Median house price more than quintupled

 Growth triggers:

  • Proximity to large commercial area
  • Good road and public transport links
  • Close to parks

Has it peaked? Unlikely. The suburb is still experiencing strong growth in median value despite overall weakening in the Melbourne market. However, price gains depend on which section of the suburb. Further out parts of the area, which are not as condensed, may fare better.  

  

COTTESLOE UNITS, WA 

>501% total capital growth in 20 years

>9.38% average annual growth over 20 years

>$718,977 in capital gains over 20 years

>Median unit price six times higher 

Growth triggers:

  • Desirable beachside location
  • Nearby affluent Peppermint Grove
  • Good public transport links
  • Easy access to Perth CBD

Has it peaked? Unlikely. Prices dipped in 2009 but has since recovered, signalling it is entering another upward phase. The suburb’s settings – neatly sandwiched on a peninsula between the Swan River and the ocean – should ensure healthy demand and capital growth in the longer term.

The full results of this report are featured in the February issue of Your Investment Property. To grab a copy click here. The results apply to Residex data for suburbs between 1991 and 2011. Always do you own research before buying property.

Do you have more than $120k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : kariong , greenwood , st kilda west , eagle vale , werribee

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here