Australia’s fastest appreciating suburbs (under $350k)

Forget Perth, the latest RP Data figures show that the country’s fastest growing suburbs for property prices are largely small towns in rural Australia. They represent some of the more surprising markets for capital growth.

It’s one of property investing’s golden rules: don’t invest in small areas that rely too strongly on agriculture alone. It’s a solid argument – but try telling it to property owners in Cleve,SA, Cloncurry, Qld or Nathalia, Vic.

All three towns are deep within rural regions of their respective states and constitute markets where agriculture reigns supreme over their economy. Despite this, each has seen 12-month prices growth outstripping 35%, according to March RP Data figures.    

Cleve, on South Australia’s Eyre Peninsula and 226km southwest of Port Augusta, is the leader of the pack among these, and was Australia fastest growing suburb over the 12 months to March. The town of 738 people saw property values jump 48%, over the period, a truly staggering amount.

If you’re unsure of what such growth equates to, imagine this. If you purchased a house in Cleve last year for $100,000, taking out a mortgage at 80% of the purchase price, you would have seen a value increase equal to 60% of your mortgage (baring interest expenses) – in only 12 months.

Cattle town Cloncurry, 770km west of Townsville, was Queensland’s fastest growing suburb over the same period, recording a 46% increase in the median house price, according to RP Data. Other high performers include Victorian agricultural centres Nathalia, Rutherglen and Myrtleford and New South Wales’ Werris Creek.

The results:

 Source: RP Data, March 2012