27/09/2018
Two things are always true about property investing. First: there’s no such thing as a sure thing. Second: while the first point may be true, there are a number of things you can do to maximise your chances of financial success.
When it comes to choosing an investment property, in the past many investors relied on a buy-and-hold strategy. Often, what this really translated to was ‘play and pray’, as they didn’t do any research to ascertain the fundamentals of their investments.
For instance, how many people do you know who have bought an investment property in their own neighbourhood? It may be convenient, but that doesn’t make it the most strategic investment choice.
It’s only when you pay attention to the numbers that you are able to become seriously strategic about your investment decisions. By leveraging long-term data and applying key criteria, investors can improve their chances of creating wealth through property – just as the property owners in these 143 suburbs have done over the years.
To be clear, these suburbs haven’t always been property performers, nor have they grown in value in a linear fashion.
Property cycles are always moving, sometimes forwards, sometimes backwards, and sometimes only very slightly. The hotspots in this list may have experienced periods of sluggish or even backwards growth, but over the long term they have performed at the peak of all Australian suburbs.
By applying your own due diligence to your property purchases, you can work towards securing the biggest gains and most profitable outcomes. In this special report, we present real-life data prepared by CoreLogic to showcase dozens of suburbs Australia-wide that have performed above average and delivered real wealth to property owners over the last two decades.*
CHECKLIST OF LONG-TERM PROPERTY PERFORMERS
Location
The old cliché ‘location, location, location’ rings true for a reason. Whether you’re a young professional, an established family, a student or a baby boomer, it’s desirable to live near public transport, lifestyle amenities and entertainment
Demographics
Does the area have broad appeal, with house-proud owner-occupiers and a steady stream of tenants? Suburbs with both of these demographics in the mix tend to hold the strongest appeal (and enjoy the greatest growth) over the long term.
Population
In order for local property demand to remain ahead of supply, the area must have a growing population. If the population is sliding backwards, that translates to fewer new amenities and infrastructure, and less pressure on housing prices.
Supply
Constrained supply levels are essential for property price growth. If it is possible to continue building up and out, supply isn’t as constrained and capital growth slows.
SOUTH AUSTRALIA
ENFIELD
MEDIAN PRICE: $438,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 8.4%
12-MONTH GROWTH: 9.5%
Eight kilometres north of the centre of Adelaide, Enfield is part of the City of Port Adelaide Enfield Council, formed in 1996 when the City of Enfield amalgamated with the City of Port Adelaide.
It’s an older area, with plenty of opportunities for renovators to make their mark, although newer homes are increasingly popping up as development really takes off in the suburb. Blocks in Enfield tend to be of a larger size, with subdivisions becoming commonplace.
Young families are flocking to the rejuvenated suburb and taking advantage of the lovely schools and sporting facilities it has to offer. Shopping and dining options abound, and with the beach only a 20-minute drive away, Enfield is a truly versatile location.
There’s also a strong rental market, owing to the relative affordability of homes here compared to nearby suburbs.
Tranmere has grown in value by over 15% in the last three years
TRANMERE
MEDIAN PRICE: $700,500
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 9.0%
12-MONTH GROWTH: 6.9%
An in-demand suburb in the city of Campbelltown, Tranmere has seen prices rise by over $500,000 in the last two decades.
The compound growth rate for this period was a considerable 9%, with growth of 6.9% in the year to March 2018. Named for a town in Cheshire, England, Tranmere has been around since the 1830s and has heritage sites such as Tranmere House.
There are different types of properties here – modern townhouses, units and character mansions. Poets’ Corner is an area of the suburb that’s historically been home to wealthier residents.
The Gums Recreational Ground is the suburb’s largest park and contains a children’s playground, a collection of gum trees, shelter sheds, a war memorial and a garden of contemplation.
There are also walking trails and open spaces. Firle Shopping Centre is nearby, as are the schools in neighbouring Magill. Adelaide Metro buses facilitate commutes to the Adelaide CBD.
VICTORIA
BRAYBROOK
MEDIAN PRICE: $750,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 12.1%
12-MONTH GROWTH: 21.0%
Braybrook, 10km west of the Melbourne CBD, began as an industrial suburb but has evolved into a mixed-use area in recent years, thanks to the gentrification of Melbourne’s western suburbs.
Shaking off the stigma associated with the inner west for many decades, Braybrook is now the site of many new housing developments and is a popular location for first home buyers due to its affordability.
Families have a number of childcare centres and schools to choose from in the suburb, and there are opportunities to connect with neighbours at the Braybrook Community Centre.
The suburb has two shopping centres, Central West Plaza and Braybrook Plaza, as well as many smaller shopping strips. While Braybrook has been characterised as disadvantaged and as an area of low employment in the past, rising property prices point to a shift in the demographic make-up of Braybrook and surrounding suburbs.
BLAIRGOWRIE
MEDIAN PRICE: $950,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 11.7%
12-MONTH GROWTH: 19.5%
A lively, bustling suburb that has been gaining ground since 1998, Blairgowrie appears to be maintaining its long streak of positive price growth.
Recording an annual growth rate of nearly 20% in March 2018, Blairgowrie’s houses have seen prices go from $103,500 in March 1998 to almost $1m two decades later.
The compound growth rate for this period was a striking 11.7%. Blairgowrie is a noteworthy travel destination on the Mornington Peninsula southeast of Melbourne, tucked right between the well-known beach resorts of Rye and Sorrento.
Visitors come for the beaches that look out onto Port Phillip Bay, and Blairgowrie is regarded as the most popular recreational scubadiving spot in Port Phillip. The clifftop walking trails in Mornington Peninsula National Park reward trekkers with incredible views of Pelly Point and the water as they traverse sand dunes onto the beach. Cafes and shops serve both tourists and residents.
WEST FOOTSCRAY
MEDIAN PRICE: $472,500
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 10.8%
12-MONTH GROWTH: 13.7%
West Footscray has been billed as the centre of Melbourne’s new wave of gentrification. Just 7km from the CBD in the City of Maribyrnong, it’s a multicultural suburb with plenty of cafes and restaurants offering cuisine from around the globe.
The main shopping precinct is Barkly Village, which has an independent supermarket and a number of ethnic grocers. West Footscray is also home to a newly built Community Centre.
First home buyers are looking towards Footscray and surrounds for affordable housing as they are priced out of similar inner-ring suburbs elsewhere in Melbourne. Young families, professional couples and hipsters are moving into the area, drawn to the short commute and colourful atmosphere.
Housing is a mix of pre-war homes in need of TLC, renovated Victorian bungalows and new builds, with subdivision commonplace. High-density housing is also increasing here.
BONBEACH
MEDIAN PRICE: $600,000
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 10.1%
12-MONTH GROWTH: 16.5%
Roughly an hour’s drive south of Melbourne, the suburb of Bonbeach is a powerhouse performer in the Victoria market. Since March 1998, unit values have risen by an average annual rate of 10.1%, from $87,000 to $600,000.
As of March 2018, growth in the last 12 months had passed the 16% mark. True to its name, Bonbeach is lauded for its white-sand beach and relaxing atmosphere. Cafes have sprung up in recent years, and Bonbeach Primary School is located here.
Since being rezoned to Bonbeach, the Patterson River Country Club, which is popular with golfers, has added to the suburb’s appeal. While amenities are limited, Bonbeach is close to the shops in suburbs like Chelsea and Carrum.
Port Phillip is another of Bonbeach’s neighbours, and travel to these areas is easy by bus or from the local railway station, which is a stop on the Frankston line.
Gentrification is transforming this inner-western suburb of Melbourne
QUEENSLAND
UNDERWOOD
MEDIAN PRICE: $555,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 9.1%
12-MONTH GROWTH: 4.7%
Underwood is a southeastern suburb of Brisbane, located around 19km from the city centre in the local council area of Logan.
Within the suburb are several large industrial estates and retail and commercial developments. Residential dwellings are a mix of older homes and architecturally designed new estates, as well as a number of properties once owned by the Housing Commission that have since been sold to private buyers.
There are a handful of million-dollar mansions in Underwood, but even the owners of smaller abodes take great pride in the presentation of their homes, with well-manicured lawns the norm and home improvements a common pastime.
The array of shopping facilities and proximity to both the M1 and M2 freeways have helped boost values in Underwood, with stores such as Bunnings and the nearby IKEA popular with renovating enthusiasts.
CAMP HILL
MEDIAN PRICE: $899,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 9.4%
12-MONTH GROWTH: 6.4%
Situated 6km southeast of the Brisbane CBD, the suburb of Camp Hill has come a long way in 20 years, recording compound growth of 9.4% over this period.
The median price is just under $900,000 after annual growth of 6.4% in the year to March 2018. For many residents, Camp Hill is a suburb that has everything. It has excellent amenities, including a thriving food scene and a shopping centre in Samuel Village.
Residents have access to good schools, such as those in nearby Holland Park, and are well served by the buses stopping at Old Cleveland Road.
GREENSLOPES
MEDIAN PRICE: $453,000
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 6.9%
12-MONTH GROWTH: -3.6%
Greenslopes, just 5km southeast of the Brisbane CBD, is a multicultural, leafy suburb conveniently situated close to the motorway.
One of Brisbane’s largest hills, Stephens Mountain, is located in Greenslopes behind the local private hospital, while shopping facilities can be found at Greenslopes Mall on Logan Road.
There are several pre-war character homes in the area, but redevelopment has seen larger unit blocks spring up in recent years. Demolition and renovation of older properties is tightly regulated by the Brisbane City Council, in an effort to preserve the charm of the area.
ANNERLEY
MEDIAN PRICE: $465,000
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 7.5%
12-MONTH GROWTH: 11.0%
Over the two decades to March 2018, Annerley’s compound growth was 7.5%, and its median unit value increased by over $300,000 during this period. Annerley offers a quiet suburban atmosphere while also being close to the Brisbane CBD.
The suburb hosts events like the Annerley Junction Christmas Fair and has a lauded food scene. There are several schools here, including Junction Park State School, Mary Immaculate Catholic Primary School and Our Lady’s College. The Princess Alexandra Hospital is just a short distance away.
NEW SOUTH WALES
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CURRANS HILL
MEDIAN PRICE: $655,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH : 11.6%
12-MONTH GROWTH: 9.0%
Located around 60km southwest of the Sydney CBD, Currans Hill is part of the Macarthur region. The suburb began as farmland and was transformed into a residential area thanks to subdivisions in the 1990s.
There are still a few pockets of undeveloped land in the north and east of the suburb. With recent developments improving infrastructure and shopping facilities in the area, Currans Hill is popular with families seeking a friendly, quiet neighbourhood in which to raise their children.
Standalone houses provide the majority of the accommodation, with most dwellings containing three or more bedrooms.
There are homes of all sizes, but the prevailing theme is laid-back, lowmaintenance living. The large number of parks, bike tracks and walking trails mean a backyard is optional, and the nearby M1 Hume Freeway allows for a reasonable commute into the city.
BRONTE
MEDIAN PRICE: $1,400,000
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 8.0%
12-MONTH GROWTH: 24.4%
Less than 30 minutes’ drive from the Sydney CBD, the suburb of Bronte is a welcome respite from the busy city.
It is situated right on the coast along Nelson Bay, and the local beach is bounded by Bronte Park. Clifftop walking paths can take you all the way to Coogee, Tamarama and Bondi Beach about 2km away.
Bronte has also become something of a foodie hub for visitors. The suburb is particularly known for propagating the surfer lifestyle.
The Bronte Surf Lifesaving Club claims to be the oldest of its kind worldwide, and the suburb hosts an annual ocean swimming event.
Bronte’s popularity has boosted its median unit price to a staggering $1.4m as of March 2018. This follows growth of 24.4% in the previous 12 months and compound growth of 8% over the past 20 years.
LISAROW
MEDIAN PRICE: $770,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 11.1%
12-MONTH GROWTH: 8.8%
The suburb of Lisarow has not shown signs of slowing down since March 1998. With strong compound growth of 11.1% over the 20 years since then and growth of 8.8% in the 12 months to March 2018, the suburb has seen its median house price increase to $770,000.
The suburb is situated in NSW’s Central Coast region. Originally, it was a rural area but has been urbanised over time into a residential hub with much medium-density housing.
Industrial activity is centred along the railway. There are also three schools in the area: Lisarow High School, Lisarow Primary School and Narara Public School. The suburb is just 5km from the Gosford CBD, which is regarded as the administrative centre of the Central Coast.
Its residents have access to many amenities, such as shopping, dining and recreational facilities. It is also convenient for those working in the CBD.
MEADOWBANK
MEDIAN PRICE: $652,500
PROPERTY TYPE: UNIT
20-YEAR GROWTH: 7.9%
12-MONTH GROWTH: 5.2%
Situated in the City of Ryde local council, Meadowbank is 15km west of the Sydney CBD and lies in a valley on the northern bank of the Parramatta River.
Meadowbank is a mixed bag of residential and commercial real estate, and there are a number of heritage-listed properties in the area.
Gentrification has been occurring in the suburb of late, with many of the older factories being demolished and replaced by high-rise apartment blocks with river views.
With ferry, bus and train services from the suburb to the city, Meadowbank is favoured by commuters, while families enjoy its relative tranquillity thanks to the absence of busy main roads, and the regular outdoor community events, including the weekly Parkrun.
Flats and apartments are more prevalent than freestanding houses in Meadowbank, and many buyers are relocating here from elsewhere in Sydney due to the affordability and convenience of the area.
Units in Warwick Farm, located around 30km from the Sydney CBD, have grown in value by a whopping 108% in the last five years
WESTERN AUSTRALIA
ATWELL
MEDIAN PRICE: $520,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 11.4%
12-MONTH GROWTH: -1.0%
While it has suffered as a result of Perth’s downturn in recent years, the suburb of Atwell has performed well in the 20 years since March 1998, recording a compound growth rate of 11.4%.
Following the slumps in the state market, the growth rate for the 12 months to March 2018 fell to -1%, and in the three years since 2015 there’s been a decline in values of 11.9%.
However, house prices in Atwell remain high at a median of $520,000. Atwell is around 20km south of the centre of Perth in the City of Cockburn LGA. Many reserves and trees are dotted throughout the suburb.
It is mainly populated by families and there are several local community centres, including the Harvest Lakes Community Centre on the grounds of Harmony Primary School, which cultivates a community atmosphere. Other schools in the suburb are Atwell Primary and Atwell College, which also caters to children with special needs.
There are several medical facilities in Atwell and three shopping areas, ensuring the suburb has everything local residents need. Access to the Perth CBD is also easy via the Kwinana Freeway or by train from Cockburn Central Station.
VICTORIA PARK
MEDIAN PRICE: $450,000
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 7.4%
12-MONTH GROWTH: 0.0%
The suburb of Victoria Park is nestled within inner-southeast Perth and seems to have weathered the worst of WA’s property market blues. Unit prices rose from $107,500 in March 1998 to $450,000 in March 2018 – an average annual growth rate of 7.4% over the last two decades.
Values slipped by 3.2% in the past three years, in line with the slump in the Perth market. Victoria Park serves as the eastern gateway to the Perth CBD and is easily accessible given the many arterial roads in this area.
It is the intersection point of the Canning Highway, the
Great Eastern Highway, Albany Highway and The Causeway. The Causeway Bridge also makes bus rides to Perth smooth and traffic-free, and the suburb is served by a local train station. Victoria Park’s ideal location makes it a good option for working professionals, families and students.
An inner-city suburb of Perth, Victoria Park has suffered during the recent downturn – but in the long term it has performed well
TASMANIA
Sandy Bay
GLENORCHY
MEDIAN PRICE: $242,500
PROPERTY TYPE: UNIT
20-YEAR COMPOUND GROWTH: 6.3%
12-MONTH GROWTH: 12.3%
With nature on its doorstep, the suburb of Glenorchy sits in the northern part of Hobart, an area rich in amenities. Apartments in Glenorchy are incredibly low priced at a median of less than $250,000, while exhibiting considerable long-term growth potential.
The compound growth rate for units over the 20 years to March 2018 was recorded at 6.3%, with growth of 12.3% in the last year of that period.
The suburb is bounded by the Derwent River and Mount Wellington. Once a largely agricultural hub, it is now mainly suburban. It is home to sports facilities such an Australian rules football oval, a pool and a football ground.
The commercial area contains a cinema and shopping centres such as Northgate Shopping Centre, Glenorchy Central and Glenorchy Plaza. Cosgrove High School, Guilford Young College and Dominic College are also located in this suburb, making it an ideal choice for families.
NORTHERN TERRITORY
Darwin City
HOWARD SPRINGS
MEDIAN PRICE: $625,000
PROPERTY TYPE: HOUSE
10-YEAR COMPOUND GROWTH: 1.7%
12-MONTH GROWTH: -3.5%
Situated in the outer ring of Darwin, the rural suburb of Howard Springs is valued by residents for its laidback atmosphere.
The downturn in the Top End has made its impact on the suburb, with the growth rate for houses plummeting to -11.5% in the three years since 2015.
Annual growth to March 2018 was -3.5%, and for the previous 10 years the compound growth rate was 1.7%. Howard Springs has its share of amenities, including a tavern and a supermarket.
Most of all, the suburb is known for its areas of natural beauty. It is rich in wildlife and bushland that encourage an active lifestyle.
Its major attraction is Howard Springs National Park, which has been a recreational venue of choice for Darwinians for many years. There are walking and hiking trails, and the park is perfect for barbecues and picnics.
AUS CAPITAL TERRITORY
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RIVETT
MEDIAN PRICE: $622,000
PROPERTY TYPE: HOUSE
20-YEAR COMPOUND GROWTH: 8.4%
12-MONTH GROWTH: 10.1%
A suburb of Canberra established in the late 1960s, Rivett has seen consistent steady growth. It recorded 8.4% compound growth over the 20 years since March 1998.
This positive trend has been maintained with an impressive growth rate of 20.1% in the three years to March 2018, taking Rivett’s current median house price to $622,000.
The suburb is named for decorated personality Sir David Rivett, and most of its street names are taken from Australian flora.
The local shopping centre is on Rivett Place, and Rivett Preschool and Burrangiri Respite Services, which provides day care for the elderly, are nearby. Playing fields situated across from the shopping centre facilitate recreational activities, as do the many neighbourhood parks. Rivett is served by the Route 27 ACTION bus to Woden Town Centre and Route 279 to Canberra.
