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Australia’s top investment hot spots

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14 Apr

Australia’s top investment hot spots

launch-admin Apr 14, 2014 0 446

Media Release

 

Onthehouse reveals top inner ring city suburbs predicted to grow over next five years

 

Australia 14 April 2014: New research released today from Onthehouse’s property data arm Residex, reveals Australia’s top suburbs for residential property investment, based on their latest predictions data.

 

Although property market growth is expected to stabilise in 2014, the data shows that some inner ring suburbs still offer strong investment potential. 

 

John Edwards, consulting analyst for Onthehouse and founder of Residex, commented: “We are expecting to see Sydney and Melbourne’s growth rates slowdown in the next six months and in other national markets next year. 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.”

 

The findings show that every capital city has inner ring areas that offer strong opportunities for investors. Sydney’s Bellevue Hill, Melbourne’s Malvern, Brisbane’s Bulimba and Perth’s City Beach all feature prominently in the national top 10 for predicted growth – with annual average rates of growth over the next five years of better than 8%.

 

Mr Edwards commented: “From a national perspective, I’m expecting to see commentary from the RBA later this year that will affect consumer sentiment and again moderate growth. This will mean changes in the recent strong national growth trends. Property investors will need to be cautious about which suburbs they invest in – particularly in inner city areas, which will deliver a very mixed range of returns.

 

“Stable growth never occurs in a linear way. Overall, we expect to see a fall in growth by the end of the year, followed by two to three years of minimal to zero growth. Then by 2018, we are expecting to see a return to strong growth rates.”

 

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%+

                                                                                    Source: Onthehouse.com.au / Residex

 

Units are predicted to deliver lower returns than houses, with the top inner ring suburbs returning an average of 4 to 8%growth per annum over the next five years. Melbourne dominates the national top five – with Elwood, St Kilda, Richmond and Rhodes. While units in Sydney’s North Bondi, Perth’s Subiaco and Brisbane’s West End are predicted to deliver the top inner ring growth results in their respective cities.

 

Mr Edwards, added: “Melbourne is defying past predictions. 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 are managing their units well; international buyers are supporting new unit sales; and higher public confidence is being driven by factors like good clearance rates at auction.

 

“Anybody buying property over the next 12 months needs to be aware of the growth patterns, now more than ever it is important to do solid research around the market to back up your decisions with data and insight.”

 

 

-ENDS-

 

Media contacts

Ashford Pritchard: E ashford@launchgroup.com.au  / T 02 9492 1040 / M 0411 020 680

Laura Douglas: E laura@launchgroup.com / T 02 9492 1000 / M 0452 505 859

 

About onthousehouse.com.au

www.onthehouse.com.au is Australia’s most transparent and comprehensive real estate portal, empowering consumers to make informed property decisions by providing them with free access to information. Over 1 million unique browsers visit onthehouse.com.au every month to search listings and view in-depth property data, making it Australia’s third most popular real estate platform.

 

Onthehouse.com.au is the flagship consumer offering of Onthehouse Holdings (ASX:OTH), the 360-degree property market services group that provides comprehensive real estate agency solutions, information and analytics services. Onthehouse Holdings businesses together help over half of Australia’s real estate agencies, as well as being used by financial institutions and other property-related professionals.

 

 

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Laura Douglas, Account Manager 

Launch Management Group Pty Ltd

 

FSA #100, Fox Studios Australia,

38 Driver Avenue, Moore Park, NSW 2021

 

office:                   + 61 2 9492 1002

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