The top 50 growth suburbs

The diverse nature of the nation’s property market – and the impact of the resources boom – is reflected in the list of Australia’s top 50 growth suburbs for the year to 31 January (see table below).

Two-thirds of the top performers are close to capital cities; the rest are in regions dominated by nearby mining operations.

Top Australian growth suburbs

These regional locations range from the resource-driven towns of Kalgoorlie, Whyalla, Broken Hill and Clermont, to the seachange markets of Cable Beach near Broome in the north-west of WA, Booragul on the shores of Lake Macquarie and Alexandra Headland in the heart of the Sunshine Coast.

Many of these markets are moving from a low base, such as Broken Hill, where the median house price is still just $120,000.

The highest number of top-growth suburbs are within Adelaide, Australia’s fastest growing capital city market.

Top Adelaide suburbs

Over the past year, house values within the broader Adelaide market have increased by 29.5%.

Despite this rapid rate of growth, Adelaide still boasts the most affordable house prices of any capital city. Thirty per cent – 15 of the 50 top suburbs – are within the greater Adelaide metro area, further highlighting the city’s strong property market.

The central and northern Queensland coastline is also heavily represented in the growth list. Many of these seaside townships are being lifted by strong demand from the mining sector. Often resource workers will base their families along the coastline for the lifestyle benefits, while they work in the nearby Bowen Basin. Strong population growth along the Queensland coast is also a sold market driver.

With growth now slowing in most major markets, selecting locations for the best capital growth is again being driven by strategic considerations, and the importance of solid research is becoming paramount. Buyers are gaining the upper hand in the market and properties are taking longer to sell.

Historically, the best capital growth has been found in the inner-city markets, coastal markets and resource-intensive locations, and these markets are likely to continue to provide some protection from any downturn.

However there may be some counter-intuitive opportunities during 2008. The mortgage belts of Sydney have had a rough trot since the end of 2003 and the most strategically placed locations such as the Macarthur districts are now showing strong investment fundamentals: low prices, strong yields and well above average population growth.

Also, the fringe suburbs of each capital city, where undersupplied rental markets are creating high yields, are also becoming more popular.

For example, the middle-ring southern and western suburbs of Brisbane provide low housing prices coupled with strong rental markets. These suburbs include Wacol, Logan and Ipswich and are also well placed for investment.

Rental yields in these outer suburbs are typically above average and there is growing demand from both investors and first-home buyers.

Australia’s top 50 growth suburbs

Rank

Suburb

No. sold

Median price

12 month growth

Five-year average

Weekly
median rent

Gross
yield

1

Mont Albert, Vic

46

$1,035,000

50.0%

12.5%

$430

2.2%

2

Glen Huntly, Vic

28

$753,250

49.9%

12.5%

$465

3.2%

3

Castlecrag, NSW

58

$1,810,000

49.0%

11.2%

$800

2.3%

4

Underdale, SA

44

$455,000

48.0%

11.0%

$315

3.6%

5

South Hedland, WA

73

$380,000

47.6%

13.7%

$750

10.3%

6

Carlton, Vic

74

$750,000

47.1%

12.9%

$420

2.9%

7

Ingham, Qld

75

$235,000

46.9%

11.2%

$183

4.0%

8

Cable Beach, WA

33

$800,000

46.8%

18.1%

$800

5.2%

9

Collinsville, Qld

60

$212,500

46.6%

22.5%

$380

9.3%

10

Pasadena, SA

42

$443,000

45.2%

11.1%

$295

3.5%

11

Echunga, SA

26

$377,500

45.2%

11.0%

$220

3.0%

12

Fig Tree Pocket, Qld

54

$850,000

44.7%

14.6%

$480

2.9%

13

Broken Hill, NSW

539

$120,000

44.6%

12.5%

$150

6.5%

14

Glen Eden, Qld

49

$375,000

44.2%

17.8%

$315

4.4%

15

Calliope, Qld

83

$360,000

44.0%

12.3%

$270

3.9%

16

Semaphore South, SA

23

$540,000

44.0%

14.8%

$360

3.5%

17

Highgate, SA

21

$705,000

43.6%

13.7%

$410

3.0%

18

Northbridge, NSW

96

$2,047,000

43.3%

12.3%

$800

2.0%

19

Elizabeth, SA

22

$208,250

41.7%

11.9%

$195

4.9%

20

South Brighton, SA

55

$445,800

41.5%

11.0%

$295

3.4%

21

Alexandra Headl’d, Qld

40

$747,500

40.8%

15.9%

$380

2.6%

22

Bronte, NSW

79

$2,025,000

39.7%

13.1%

$670

1.7%

23

Highgate Hill, Qld

55

$781,500

39.3%

14.4%

$340

2.3%

24

Clermond, Qld

48

$285,000

39.0%

16.6%

$340

6.2%

25

Whyalla, SA

72

$285,000

39.0%

11.7%

$350

6.4%

26

Gilberton, SA

17

$778,000

38.9%

8.9%

$450

3.0%

27

Kyle Bay, NSW

11

$1,218,000

38.8%

12.8%

$440

1.9%

28

Bayview, NT

21

$680,000

38.8%

21.0%

$675

5.2%

29

Mont Albert North, Vic

33

$735,000

38.7%

14.7%

$400

2.8%

30

Kensington Gardens, SA

35

$692,000

38.4%

13.6%

$350

2.6%

31

Crystal Brook, SA

12

$166,000

38.3%

12.0%

$165

5.2%

32

Ivanhoe East, Vic

25

$1,051,000

38.3%

11.8%

$490

2.4%

33

Palmyra, WA

19

$795,000

38.3%

15.8%

$350

2.3%

34

Leabrook, SA

16

$1,005,000

38.1%

15.9%

$340

1.8%

35

Wacol, Qld

27

$295,000

38.0%

15.9%

$260

4.6%

36

Abbotsford, Vic

65

$614,000

37.9%

11.6%

$420

3.6%

37

Glenelg, SA

20

$720,500

37.9%

11.3%

$328

2.4%

38

Middle Park, Vic

63

$1,241,000

37.9%

13.2%

$530

2.2%

39

Cumberland Park, SA

35

$497,000

37.7%

11.5%

$320

3.3%

40

Unley, SA

49

$755,000

37.5%

13.3%

$430

3.0%

41

Bellfield, Vic

16

$398,000

37.2%

15.4%

$260

3.4%

42

Hyde Park, Qld

34

$440,500

36.8%

13.5%

$280

3.3%

43

Seddon, Vic

55

$500,000

36.6%

14.4%

$320

3.3%

44

Booragul, NSW

19

$277,000

36.5%

11.2%

$230

4.3%

45

Kalgoorlie, WA

63

$275,000

36.1%

10.9%

$330

6.2%

46

Wonga Park, Vic

37

$659,000

35.9%

12.4%

$345

2.7%

47

Ethelton, SA

34

$326,000

35.8%

13.3%

$290

4.6%

48

Hectorville, SA

47

$400,000

35.6%

12.1%

$273

3.5%

49

South Townsville, Qld

46

$403,750

35.5%

16.0%

$280

3.6%

50

Whyalla, SA

70

$250,500

35.4%

10.6%

$350

7.3%

Tim Lawless is research director with RP Data.

This story first appeared in Eureka Report

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