AU Best property performers
Property Here - Tuesday, June 04, 2013
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 - www.thepropertyprofessor.com.au
Read more: http://www.news.com.au/realestate/buying/best-property-performers/story-fndban6l-1226657064707#ixzz2VJS3g8vl