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Property Here - Tuesday, June 04, 2013

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It is five years since the Australian property market was first impacted by the events which led to the Global Financial Crisis. It was in the first week of March 2008 that the residential property market virtually stopped dead in its tracks. Up to this point, demand for property and house prices were increasing rapidly but it was the increase in the cash rate by the RBA at this time that started the decline in demand for property and prices. A few months later, even worse was to come when the effects of the GFC impacted on the whole Australian economy.

So, how has the property market performed since the initial impact of the GFC and where are the new hot spots?

I have sourced data from the ABS to help determine how each of the capital city markets has performed in the five years from March 2008 to March 2013.

Sydney - 15.1 per cent

Melbourne - 16.1 per cent

Brisbane - 0.0 per cent

Adelaide - 5.3 per cent

Perth - 6.4 per cent

Hobart - 3.2 per cent

Canberra - 15.0 per cent

Darwin - 40.7 per cent

Other than Darwin, all other capital cities have performed relatively poorly, when you compare this growth to the historical growth of Australian house prices. Brisbane has virtually seen no growth in house prices in the last five years.

However, this doesn't mean that every suburb within these capital cities have performed poorly. I have used data from RP Data to compile the list below which highlights just a few suburbs from each of the five major capital cities which have performed relatively well over this five year period.

SYDNEY (15.1 per cent)

Arncliffe - 35.3 per cent

Campsie - 34.8 per cent

Ashfield - 31.4 per cent

Marrickville - 31.0 per cent

MELBOURNE (16.1 per cent)

Braybrook - 42.0 per cent

Brunswick East - 38.2 per cent

Geelong - 30.4 per cent

Seddon - 30.0 per cent

BRISBANE (0.0 per cent)

Sandgate - 22.7 per cent

Kelvin Grove - 15.9 per cent

Brighton - 11.4 per cent

Chermside - 11.4 per cent

ADELAIDE (5.3 per cent)

Port Noarlunga - 19.9 per cent

Flinders Park - 12.5 per cent

Christies Beach 11.5 per cent

Flinders Park - 11.1 per cent

Brooklyn Park - 11.1 per cent

PERTH (6.4 per cent)

Riverton - 20.2 per cent

Bull Creek - 19.3 per cent

Duncraig - 14.0 per cent

Can you see a common theme in these outperforming suburbs?

It's their location. All of the suburbs above are relatively close to facilities (CBD) or near water (beach or river). Suburbs in these types of locations (especially those close to the CBD) tend to do well in almost any market as this is where the demand for property, relative to supply, is the greatest.

That's enough of the past. What about the future?

If you are looking to buy into a suburb which is forecast to outperform others in the next five years, consider these:

SYDNEY: Ashfield, Leichhardt, Marrickville, Sans Souci

MELBOURNE: Coburg, Flemington, Maidstone, Seddon

BRISBANE: Annerley, Kelvin Grove, Margate, Woody Point

ADELAIDE: Christies Beach, Port Noarlunga, Thebarton, Torrensville

PERTH: East Victoria Park, Scarborough, Victoria Park, Yanchep

Peter Koulizos, property lecturer and author -

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