It’s no use buying an investment property in an area that nobody wants to live in and then praying for capital growth, but there are several suburbs where it seems that the owners never want to leave – holding on to their properties for an average of between 17 and 20 years. And guess what? Median prices in the top 10 are as low as $90,000.
Your Investment Property has delved into the January figures from RP Data to reveal the ten suburbs with the longest average hold periods, and has found a selection of areas where owners cling on to their homes for up to two decades. (Scroll down to see the list).
|
State |
Suburb |
Type |
Median Price |
12 month Growth |
Average Annual Growth |
Gross Rental Yield |
Average Hold Period (yrs) |
|
VIC |
H |
$735,000 |
-2% |
8.5% |
3% |
20 |
|
|
VIC |
H |
$199,900 |
22% |
10.3% |
n.a |
19 |
|
|
NSW |
H |
$405,000 |
-2% |
10.8% |
5% |
19 |
|
|
NSW |
H |
$760,000 |
22% |
6.9% |
3% |
18 |
|
|
VIC |
H |
$90,000 |
n.a |
n.a |
n.a |
18 |
|
|
NSW |
H |
$1,37,0000 |
8% |
8.7% |
3% |
17 |
|
|
TAS |
H |
$347,500 |
n.a |
n.a |
n.a |
17 |
|
|
NSW |
H |
$810,000 |
7% |
1.2% |
n.a |
17 |
|
|
VIC |
H |
$467,500 |
-12% |
8.2% |
4% |
17 |
|
|
VIC |
H |
$367,500 |
-19% |
11.4% |
n.a |
17 |
Source: RP Data, Jan 2012
Victoria takes out the top two spots, with houses in Essendon West (20 years) and Lake Boga (19 years) taking first and second places respectively. In fact, houses in Victoria account for five of the top ten suburbs with the highest average hold periods, with fifth placed Wycheproof (18 years), ninth placed Watsonia North and tenth placed Smiths Beach (both 17 years) adding to the Garden State’s tally.
New South Wales houses account for four of the top ten, while Tasmania has one entry – houses in seventh placed Montagu Bay (17 years).
Interestingly, it’s not only top end suburbs where owners are hanging on to their properties for up to two decades. While Rodd Point in NSW breaks the $1m mark with a median house price of $1.37m, Wycheproof has an astonishingly low median house price of $90,000 according to RP Data. Perhaps its remote location, around 300km from Melbourne and around 150km from Bendigo has played its part in creating such a low median.
There’s also a wide range of performance figures when it comes to capital growth. Eighth placed Dangar Island, for example, recorded a disappointing average annual growth over the past 10 years of just 1.2%. Tenth placed Smiths Beach has the highest average annual growth rate of the top ten, but its 12 month performance is a worrying -19%.
Read on for a state by state roundup of the five suburbs with the longest average hold periods, according to RP Data's January figures.
|
State |
Suburb |
Type |
Median Price |
12 month Growth |
Average Annual Growth |
Gross Rental Yield |
Average Hold Period (yrs) |
|
ACT |
U |
$430,000 |
-19% |
7.8% |
n.a |
15 |
|
|
ACT |
U |
$439,000 |
-13% |
12.2% |
n.a |
14 |
|
|
ACT |
U |
$526,225 |
0% |
8.7% |
5% |
13 |
|
|
ACT |
H |
$512,000 |
-5% |
7.2% |
n.a |
13 |
|
|
ACT |
H |
$1,700,000 |
-6% |
9.4% |
n.a |
12 |
|
|
NSW |
H |
$405,000 |
-2% |
10.8% |
5% |
19 |
|
|
NSW |
H |
$760,000 |
22% |
6.9% |
3% |
18 |
|
|
NSW |
H |
$1,370,000 |
8% |
8.7% |
3% |
17 |
|
|
NSW |
H |
$810,000 |
7% |
1.2% |
n.a |
17 |
|
|
NSW |
H |
$800,500 |
-12% |
1.9% |
n.a |
16 |
|
|
NT |
U |
$515,000 |
14% |
n.a |
5% |
8 |
|
|
NT |
H |
$419,000 |
9% |
11.2% |
6% |
8 |
|
|
NT |
H |
$507,000 |
-3% |
11.3% |
5% |
8 |
|
|
NT |
H |
$695,000 |
5% |
11.3% |
5% |
8 |
|
|
NT |
H |
$506,000 |
-17% |
10.4% |
6% |
7 |
|
|
QLD |
H |
$700,000 |
-2% |
10.0% |
n.a |
16 |
|
|
QLD |
H |
$739,500 |
3% |
10.7% |
3% |
16 |
|
|
QLD |
H |
$650,000 |
5% |
10.8% |
4% |
15 |
|
|
QLD |
U |
$365,000 |
5% |
10.7% |
n.a |
14 |
|
|
QLD |
H |
$422,000 |
-3% |
11.7% |
5% |
14 |
|
|
SA |
H |
$225,000 |
n.a |
n.a |
n.a |
16 |
|
|
SA |
H |
$360,000 |
-3% |
11.6% |
5% |
13 |
|
|
SA |
U |
$209,000 |
n.a |
n.a |
n.a |
12 |
|
|
SA |
H |
$287,500 |
-3% |
10.7% |
5% |
12 |
|
|
SA |
H |
$352,500 |
6% |
12.4% |
n.a |
12 |
|
|
TAS |
H |
$347,500 |
n.a |
n.a |
n.a |
17 |
|
|
TAS |
H |
$255,000 |
-7% |
13.7% |
6% |
14 |
|
|
TAS |
H |
$275,000 |
-20% |
14.0% |
n.a |
12 |
|
|
TAS |
H |
$192,500 |
4% |
14.2% |
n.a |
12 |
|
|
TAS |
H |
$228,500 |
-13% |
14.0% |
5% |
11 |
|
|
VIC |
H |
$735,000 |
-2% |
8.5% |
3% |
20 |
|
|
VIC |
H |
$199,900 |
22% |
10.3% |
n.a |
19 |
|
|
VIC |
H |
$90,000 |
n.a |
n.a |
n.a |
18 |
|
|
VIC |
H |
$467,500 |
-12% |
8.2% |
4% |
17 |
|
|
VIC |
H |
$367,500 |
-19% |
11.4% |
n.a |
17 |
|
|
WA |
H |
$855,000 |
n.a |
n.a |
n.a |
16 |
|
|
WA |
H |
$370,000 |
10% |
14.2% |
4% |
14 |
|
|
WA |
H |
$642,000 |
n.a |
n.a |
2% |
14 |
|
|
WA |
H |
$650,000 |
-9% |
10.0% |
4% |
13 |
|
|
WA |
H |
$325,000 |
n.a |
n.a |
5% |
12 |
Source: RP Data, Jan 2012
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