The top 10 suburbs in each state to have experienced the most rapid capital growth over the past 12 months have been uncovered by new data.
CoreLogic RP Data figures show that the top-performing suburb for houses across the country was East Carnarvon in Western Australia, which experienced 49.84 per cent median price growth in the 12 months to 31 January 2015.
Not far behind was Canada Bay in Sydney’s inner west, which experienced 49.49 per cent median house price growth over the period.
In Queensland, the Gold Coast suburb of Currumbin saw the median price climb by 32.01 per cent – placing it eighth on the list of the state’s top performers.
Tony Coughran, buyer’s agent at VFM Buyers Agents, said despite already experiencing significant price growth, the area’s investment credentials are still strong for new buyers.
“Older generations who have lived in the same properties for decades account for much of the area’s population. The long periods of time for which residents occupy these properties are testament to Currumbin’s superior lifestyle," he said.
“This trend, mixed with sustained interest from property investors has maintained consistently high property prices. Investors with an eye for restoration and specifically, making a property stand out amongst other subdivisions, could be successful in this market.”
The growth of neighbouring suburbs and increasing employment opportunities will also serve to boost the area’s longer-term investment prospects, he said.
“If the quality of life is not enough for investors to consider this market, then they should consider factors like the development of neighbouring areas like Southport. This location looks set to become the Gold Coast’s main commercial hub within the next five to 10 years, and is close to Currumbin," he said.
“The city professionals who will be attracted to this will create further competition in the Currumbin market.”
The suburb currently has a median house price of $830,000 and a gross rental yield of 3.7 per cent, according to CoreLogic RP Data’s figures.
In Victoria, Brunswick East placed 10th in terms of price growth, climbing 26.62 per cent.
Cate Bakos of Cate Bakos Property said the area was benefiting from the ongoing popularity but increasing unaffordability of Fitzroy North.
“There’s been an enormous push into these suburbs with both buyers and renters wanting to live in the inner-ring catchment in Melbourne’s north,” she said.
“It’s a pretty groovy place to live – with lots of lovely cafés and restaurants. In addition, it’s very easy for workers who live in the area to get into the city, so the area is very popular with double income professionals.”
Seacliff, in Adelaide’s City of Holdfast Bay, experienced 36.4 per cent growth in median price over the past 12 months.
Speaking about the suburb, Chris Waterman, principal of Waterman and Waterman, said the suburb was first established as a fishing village, but recent transport link improvements have made it a popular lifestyle destination.
“Seacliff’s shift from a maritime economy has changed the area’s demographic from lower socio-economic to mostly middle- and upper-income residents,” he said.
Mr Waterman said the suburb’s proximity to Flinders University and Flinders Medical Centre further strengthened its investment credentials.
“These institutions give landlords a lot of choices when it comes to tenants. They can either buy a one- or two-bedroom property for university staff with small families, or purchase a five-bedroom home for students. Investors could effectively turn one of these larger properties into a boarding house for students and make a very good return,” he explained.
Mr Waterman said properties close to the sea are often favoured by tenants, and highlighted land-banking opportunities close to the beach.
“An investor could buy one of the older seafront properties and build two luxury apartments in their place. This strategy has worked very well inland, where houses have been demolished to have courtyard properties built in their place,” he said.
The suburb looks “set to be one of South Australia’s stronger areas moving into the future”, according to Mr Waterman.
“The area is part of a wider beach strip that constantly experiences a high level of demand for property. There are great opportunities to be had, both for owner-occupiers and for those looking to rent out their properties,” he said.
The median price in Seacliff for houses is currently $665,000 and properties attract a gross rental yield of 3.3 per cent, according to CoreLogic RP Data figures.
