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Suburbs with top growth potential identified: Residex

By Staff Reporter
6

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%+

 

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Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%