One of the country’s leading real estate moguls has revealed the Sydney and regional suburbs that he expects to outperform the rest of the pack for capital growth.
Writing in his Autumn 2012 Market Review, McGrath Estate Agents CEO (and judge on the TV renovation show The Block) John McGrath has tipped the following suburbs as his best picks for future growth in the Sydney metro area (scroll down to see the list):
|
Suburb |
House/apartment |
Median Price |
12 month Growth |
Average Annual Growth |
Gross Rental Yield |
Average GPO Distance |
|
House |
$1,550,000 |
-24% |
6.8% |
4.5% |
2km |
|
|
House |
$1,581,000 |
-12% |
7.7% |
2.6% |
7km |
|
|
House |
$1,445,000 |
-8% |
7.4% |
3.6% |
7km |
|
|
House |
$1,410,000 |
-13% |
5.9% |
3.9% |
12km |
|
|
House |
$1,800,000 |
-28% |
10.3% |
2.6% |
31km |
|
|
Apartment |
$575,000 |
-7% |
3.6% |
5.0% |
5km |
|
|
Apartment |
$648,250 |
-5% |
4.4% |
4.7% |
7km |
|
|
Apartment |
$457,000 |
-11% |
5.3% |
4.7% |
12km |
|
|
Apartment |
$440,000 |
-8% |
7.0% |
4.5% |
11km |
|
|
Apartment |
$528,000 |
-4% |
2.5% |
6.4% |
1km |
Source: John McGrath/RP Data, Dec 2011
If those median prices look a bit too rich for your blood, then McGrath suggests that the following regional markets are worth further inspection:
|
Suburb |
State |
Median Price (houses) |
12 month Growth |
Average Annual Growth |
Gross Rental Yield |
Average GPO Distance |
|
NSW |
$519,000 |
-3% |
7.3% |
4.2% |
99km |
|
|
QLD |
$530,000 |
-7% |
8.9% |
4.5% |
79km |
|
|
NSW |
$532,500 |
-3% |
8.8% |
4.2% |
600km |
|
|
NSW |
$320,000 |
-2% |
5.8% |
5.2% |
85km |
|
|
NSW |
$425,000 |
3% |
8.9% |
4.6% |
114km |
|
|
ACT |
$642,500 |
6% |
11.5% |
4.1% |
3km |
|
|
ACT |
$480,000 |
1% |
11.1% |
5.0% |
14km |
|
|
Lighthouse Beach |
NSW |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
|
NSW |
$561,250 |
-1% |
5.5% |
4.2% |
52km |
|
|
NSW |
$650,000 |
4% |
6.3% |
3.9% |
57km |
Source: John McGrath/RP Data, Dec 2011
Overall, McGrath believes that the property market is in a state of flux, with uncertainty being created by the European debt crisis, Australian job losses and “the banks signalling that the days of routinely following the Reserve Bank’s moves on interest rates may be over”.
Overall, however, he paints a cautiously optimistic picture for the year ahead, citing increased buyer enquiries fuelled by last year’s interest rate cuts.
“There’s also a sense among buyers that after waiting it out in 2011, now is the time to buy when lower rates allow greater borrowing power and excellent value remains on offer,” he said.
He tips suburbs within 10km of the Sydney CBD to do well, and predicts that higher rewards may be found in Southeast Queensland.
“The Gold Coast market is not out of the woods yet but those who have the capital to buy and hold medium term will see this market recover more strongly over the next 3-5 years than most other markets hit hard by the GFC,” he said.
Newcastle also hits McGrath’s radar as a promising prospect.
“It’s a developing market that is yet to be truly appreciated for its excellent lifestyle and growing local economy, with the booming Hunter Valley mines also on its doorstep,” he said.
Visit the where to buy now section of our property investment forum to discuss this year’s hotspots with investors and experts.
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