This article is from the Australian Property Journal archive
LAKEMBA in Sydney’s Canterbury has recorded the highest annual capital growth in the country over the past decade, followed by the Oatlands and Dundas Valley region.
Research from the Property Investment Professionals of Australia (PIPA) and CoreLogic showed third place was Rockbank-Mount Cottrell in Melbourne’s west, which posted 7.9% annual growth to be at the top in Melbourne.
Home owners in Lakemba have enjoyed 8.4% increases in value each year, from $394,500 to $881,500, and Oatlands and Dundas Valley at 8.1% from $662,000 to $1.41 million.
PIPA chairman Peter Koulizos said the national results showed a mix of affordable and prestige suburbs had performed well over the period.
However, the research also showed that locations within markets that were deemed subdued continued to record robust house value growth.
Adelaide only recorded average annual growth of 1.3%, while its top performing location of Prospect saw prices increase by 3.4% over the period, tracked closely by North Adelaide and Nailsworth-Broadview.
Similarly, in Darwin prices reduced on average 1.9% annually as Rosebery-Bellamack median values increased 3.2%. Palmerston-South was the only other location of post positive growth, of 1.6% each year.
Perth also recorded negative annual growth of 1.4% through the period. Riverton-Shelley-Rossmoyne (0.6%) and Willetton (0.5%) were the only upwards movers.
“This is actually quite common, because there are submarkets within markets which operate to the beat of their own drums, usually because of consistently strong demand from buyers keen to live or invest in those locations,” Koulizos said.
Sydney recorded the highest average annual capital growth over the decade at 5.5%, followed by Melbourne on 4.9% and Hobart on 3.4%.
Bridgwater-Gagebrook led Hobart with 5.2% each year, and then Rokeby (5.0%) and West Moonah (4.6%). Melbourne’s second and third best performers were the southern and northern components of Doncaster East, at 7.8% and 7.5% respectively.
“Annual growth of between 1.3% to 2.8% over the past decade is part of the reason why so many investors and property investment experts are eyeing Brisbane, Adelaide and Canberra as potentially having the best capital growth prospects over the next 10-year period,” Koulizos said.
Top performers in Brisbane were Robertson (3.7%) and then Tarragindi and New Farm, while Casey (6.4%) was the clear leader in Canberra, ahead of Crace and Forde.
CoreLogic head of research Tim Lawless said investing in the housing market is typically a long-term strategy.
“Short-term movements are less important than the longer-term trends, which typically see housing values moving through a cycle where values will rise, fall and track sideways.”
