Suburbs with top growth potential identified: Residex
A major data analysis company has highlighted the top 10 suburbs likely to see fast growth over the next five years.
Expensive inner-city areas in Sydney, Melbourne, Perth and Brisbane dominate the list.
For houses, all the suburbs in the top 10 have a median price point of over $1 million, with the exception of Bulimba in Brisbane.
Residex founder John Edwards said these suburbs were likely to stay strong despite the wider market waning over the coming 12 months.
“Although inner-ring areas often fall into the least affordable class compared to their suburban neighbours, the data indicates there are still opportunities for savvy investors, in the right suburbs,” Mr Edwards said.
Growth of around 10 per cent per annum over the next five years was predicted in Sydney’s Bellevue and Rose Bay, as well as Malvern in Melbourne and Bulimba in Brisbane.
Perth also made the list, with City Beach predicted to grow by nine per cent per annum and Mount Pleasant by eight per cent.
For units, the price points tended to be more attainable, but the returns were also more conservative.
Melbourne’s Elwood is expected to have the best performance at eight per cent each year for five years, followed by St Kilda and Richmond on seven per cent.
At a median unit price of $532,000, Elwood also presented a more affordable option for investors.
Mr Edwards said these trends suggest Melbourne may defy previous predictions of a slowdown in the unit sector.
“My feeling is that there is an oversupply of property, especially units, but demand is currently being propped up by three main factors: property developers managing their units well; international buyers supporting new unit sales; and higher public confidence driven by factors like good clearance rates at auction,” he said.
The full list is reproduced below.
House value growth – top suburbs to 2019
|
City |
Suburb |
Median Value |
Capital Growth, Last Year |
Rental Yield, Last Year |
Predictions, 5 Year % p.a. |
|
Sydney |
BELLEVUE HILL |
$3,384,500 |
1.31% |
2.69% |
10%+ |
|
Melbourne |
MALVERN |
$1,674,500 |
7.68% |
3.26% |
10%+ |
|
Sydney |
ROSE BAY |
$2,319,000 |
3.37% |
2.62% |
10%+ |
|
Brisbane |
BULIMBA |
$897,500 |
4.29% |
4.47% |
10%+ |
|
Melbourne |
ELWOOD |
$1,382,500 |
12.29% |
3.41% |
9%+ |
|
Sydney |
MOSMAN |
$2,454,500 |
12.73% |
3.60% |
9%+ |
|
Perth |
CITY BEACH |
$1,851,000 |
12.80% |
3.30% |
9%+ |
|
Brisbane |
NEW FARM |
$1,170,500 |
6.65% |
3.58% |
9%+ |
|
Melbourne |
ST KILDA |
$1,125,000 |
17.19% |
3.71% |
9%+ |
|
Perth |
MOUNT PLEASANT |
$1,295,000 |
5.77% |
3.10% |
8%+ |
Source: Onthehouse.com.au / Residex
Unit value growth – top suburbs to 2019
|
City |
Suburb |
Median Value |
Capital Growth, Last Year |
Rental Yield, Last Year |
Predictions, 5 Year % p.a. |
|
Melbourne |
ELWOOD |
$532,000 |
6.12% |
4.13% |
8%+ |
|
Melbourne |
ST KILDA |
$465,500 |
6.18% |
4.51% |
7%+ |
|
Melbourne |
RICHMOND |
$507,000 |
6.41% |
4.63% |
7%+ |
|
Sydney |
NORTH BONDI |
$752,500 |
12.07% |
4.69% |
5%+ |
|
Sydney |
MILSONS POINT |
$1,061,500 |
15.43% |
4.43% |
5%+ |
|
Perth |
SUBIACO |
$632,500 |
3.82% |
4.88% |
4%+ |
|
Perth |
CLAREMONT |
$700,000 |
0.36% |
4.48% |
4%+ |
|
Perth |
WEST PERTH |
$537,000 |
2.81% |
5.67% |
4%+ |
|
Brisbane |
WEST END |
$489,500 |
6.12% |
5.31% |
4%+ |
|
Brisbane |
NEW FARM |
$501,000 |
5.17% |
5.11% |
4%+ |