This article is from the Australian Property Journal archive
HOUSES close to a CBD and in an affluent area are likely to have made more money than their owners over the past five years.
Research by RiskWise Property Research shows houses there were 205 suburbs in New South Wales that earned more than their owners during the period, while 53 suburbs in Victoria did so.
RiskWise chief executive officer, Doron Peleg said that in NSW the top performers in Sydney were suburbs appealing to executives and successful professional workers looking for attractive lifestyle options within easy commuting distance from the city.
Those areas outside of the city that made the list, such as Byron Bay, were able to offer “something special”, such seaside living or rural acreage.
The exclusive enclave of Centennial Park topped the NSW list. Average house prices in the millionaires’ playground is $5.248 million, and prices rose more than $482,000 on an annual average over the past five years, while the average individual income sits at around $125,500, according to Australian Tax Office figures.
Individuals in blue-chip Point Piper who earn salaries of nearly $188,000 per year earned much less than their houses, which had an annual average capital growth over the five-year period of $456,000.
Kooyong was the top Victorian suburb, where the average house price sits at $3.38 million. Average individual income is just over $119,000, and average annual price growth for houses over the past five years was more than $219,000.
Centennial Park, 4kms south east of the Sydney CBD, is characterised by upmarket houses on larger blocks. About 60% of those employed in the prestigious suburb are executives and successful professionals.
Other top-ranking locations included the harbourside suburb of Kirribilli, which also enjoys proximity to the city, and includes Kirribilli House, an official residence of the Prime Minister. Nearly 70% of its employed residents are professionals. Point Piper is home to many of Australia’s prominent businesspeople, and about 60% of those employed in the suburb are professionals.
Houses earned more than the inhabitants of Bellevue Hill, considered one of the country’s wealthiest suburbs, while heritage-rich Dawes Point, with its small population of about 360, had the highest median mortgage repayment in the greater Sydney area, according to the 2016 ABS Census.
Victoria’s top-ranking suburbs featured a mix between affluent and less affluent areas, and metropolitan, outer suburban and regional locations.
Kooyong was followed by Flinders on the Mornington Peninsula where houses, with a median price of $1.5 million, earned on an annual average $153,000 in the past five years, clearly above the income of just over $100,000 individual income.
“While the township is about 100 kilometres from Melbourne, it is a well touristed area and offers an attractive lifestyle by the sea,” Peleg said.
Houses in Rochford, where the median price is just under $1.7 million, earned close to $142,000 on an annual average, but individual income was only $65,000.
“This small rural community is 72km from Melbourne, meaning residents can have the best of both worlds in terms of lifestyle while still being in relatively easy commuting distance from the city,” Peleg said.
In fourth is Guys Hill, is 43 kilometres south east of Melbourne. Houses have a median price of $1.3 million and earned $130,000 on average over five years while individual income sits at $61,000.
The small township of Gherang was fifth. About 30 minutes’ drive from Torquay, it is characterised by large acreage properties, farmland and some rural residential subdivision.
