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Best-performing suburbs for 2018 revealed

Best-performing suburbs for 2018 revealed

by Sasha Karen | December 20, 2018 | 1 minute read

In a rollercoaster year for the Australian property market, CoreLogic has released its 2019 outlook and its assessment of the best-performing suburbs of 2018. 

best suburbs in australia 2018 property investment
December 20, 2018

Australia’s overall property market in 2018 declined by 4.1 per cent over the 12 months to November 2018, and were described by CoreLogic research analyst Cameron Kusher as ‘slowing quite rapidly’.

This was the largest annual fall since December 2011.

Sydney saw the largest annual fall for dwelling values out of all the capital cities at 8.1 per cent, its highest since May 1983. Melbourne followed with a decline of 5.8 per cent, 4.2 per cent in PerthPerth, TAS Perth, WA and then 0.8 of a percentage point in Darwin.

Hobart meanwhile was the highest growing capital city for dwelling values with a rise of 9.3 per cent, followed by 4 per cent in Canberra, 1.4 per cent in Adelaide and 0.3 of a percentage point in Brisbane.

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The core of this slowdown, according to Mr Kusher, was not an economic slowdown or higher mortgage rates, but the combination of tightening credit conditions, a growing economy and mortgage rates at near record lows.

“Since the onset of financial deregulation in the mid-1980s, credit access at the time became a whole lot easier for borrowers,” Mr Kusher said.

“However, since macroprudential policies implementation began in 2015, accessing credit has become incrementally more difficult and where investors and interest-only borrowers are having to pay higher mortgage rates.”

The outlook for 2019

Mr Kusher did not expect conditions to change much in the new year, and is likely we will see “more of the same”; more national declines driven by Sydney and Melbourne.

However, he did say value growth is expected to either slow or hold steady in the rest of Australia amid tighter credit conditions.

“2019 credit conditions are expected to remain tight – a likely catalyst towards dampening housing market conditions. February will see the release of the banking royal commission findings and recommendations and will potentially deliver significant changes for the mortgage landscape,” Mr Kusher said.

“To-date the Reserve Bank has not been overly concerned with falling dwelling values largely because it has mostly been contained to Sydney and Melbourne and both cities have seen a substantial run-up in values over recent years.

“While that may be the case, if the slowing housing market delivers an impact consumer consumption, we could then see a change of tact. Were this to happen, we could see some of the temporary macroprudential measures eased back throughout 2019.”

CoreLogic also revealed their top performing suburbs for 2018 from across the country:

Category

Houses

Units

Highest median value

Bellevue Hill, Woollahra, NSW: $4,670,293

Point Piper, Woollahra, NSW: $2,232,840

Lowest median value

Zeehan, West Coast, Tas: $71,184

Newman, East Pilbara, WA: $96,274

Lowest median value within 10km of a capital city

Risdon Value, Clarence, Tas: $257,585

Glendalough, StirlingStirling, WA Stirling, SA Stirling, ACT, Tas: $244,677

Greatest 12-month change in median values

Emerald, Central Highlands, Qld: 37.4%

WarwickWarwick, WA Warwick, QLD, Southern Downs, Qld: 32.8%

Greatest five-year change in median values

ExeterExeter, TAS Exeter, SA, Wingecarribee, NSW: 150.6%

Ettalong Beach, Central Coast, NSW: 84.6%

Highest gross rental yields

Newman, East Pilbaram, WA: 14.9%

Port Hedland, Port Hedland, WA: 16%

Highest gross rental yields within 10km of a capital city

Clarendon Vale, Clarence, Tas: 7.6%

CarltonCarlton, VIC Carlton, NSW Carlton, TAS, Melbourne, Vic: 6.9%

Highest median weekly advertised rents

Bellevue Hill, Woollahra, NSW: $2,500

Millers Point, Sydney, NSW: $1,200

Lowest median weekly advertised rents

QueenstownQueenstown, SA Queenstown, TAS, West Coast, Tas: $143

Moe, Labtrobe, Vic: $160

Highest total value of sales

Mosman, Mosman, NSW: $1,031,345,280

Melbourne, Melbourne, Vic: $793,697,472

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