The top 10 suburbs in each state to have experienced the fastest capital growth over the most recent quarter have been uncovered by new data.
Quarterly growth figures provided by CoreLogic RP Data indicate that suburbs in Australia’s regional centres were amongst the best performing over the period.
Amongst the larger suburbs, Newcastle in New South Wales performed well with a growth figure of 31.78 per cent in house prices over the quarter.
East Mackay, in Queensland’s north, experienced growth of 33.83 per cent, making it the number two performing suburb in the nation, just behind the small coastal town of Huskisson in NSW, on 34.64 per cent.
Victoria’s best-ranked suburb was Alfredton, a suburb of Ballarat. It returned a figure of 31.11 per cent for the quarter.
North Geelong and Geelong West ranked eighth and ninth in Victoria for quarterly median growth. North Geelong had a rate of 17.02 per cent and West Geelong 16.9 per cent.
Dover Heights was Sydney’s best-performing suburb with a figure of 28.21 per cent. North Manly was not far behind on 27.5 per cent. The two suburbs ranked fifth and sixth, respectively, in the state. Bella Vista, in the city’s north west, ranked ninth with a figure of 26.39 per cent.
Right Property Group’s director Victor Kumar explained that as a relatively new suburb, Bella Vista had been targeted at a specific market segment.
“It has been marketed well to appeal to a certain demographic. The target is the business owners in the nearby business parks, as well as a wealthy migrant community,” he said.
He attributed much of the suburb’s recent growth to the confirmation of the construction of a train station, to be completed within the next four years. Speculation about the train station has already assisted in providing a boost to the market, in an area which is plagued by congestion issues, he said.
“There are a lot of people who speculated in this area, including the Baulkham Hills district, when the train station was first announced,” he said.
Mr Kumar said that the completion of the train station would have future flow on effects for the market.
“Now that the station is actually under way, it has made the houses around it a lot more valuable, purely because it improves access … A lot more businesses will start moving in because logistics will be easier. That will have a flow-on effect to the wider community and property values.”
Taylors Hill was Melbourne’s best-performing suburb at number four in the state, with a growth figure of 28.29 per cent. The suburb recorded a unit rental yield of 5.49 per cent.
The two territories continue to be amongst the nation’s slowest growth markets, with the ACT ahead of the Northern Territory.
Lyons, ranked sixth fastest growing suburb in the ACT, had a growth rate of 10.5 per cent.
Principal of Canberra Property Buyer Solutions Tom Duffy has previously expressed the view that the suburb is transitioning toward a strong growth period.
“I think the suburb offers a lot of opportunity to investors. It tends to be quite a strong area for the rental market. It actually could be a suburb that moves well over the next couple of years, mainly because of its proximity to Woden,” Mr Duffy said late last year.
The inner-Darwin suburb of Larrakeyah recorded a 12.21 per cent growth rate, despite a large number of new developments previously giving voice to concerns regarding oversupply.
Petersen’s Property Search buyer’s agent Tod Peterson believes that these concerns were largely unfounded, stating that Darwin has a long history of undersupply.
“Initially, there was some concern that an oversupply of units might develop in the area, I do not think that is the case now. We have always had a lack of accommodation in Darwin, and have always secured very good rents in the area,” Mr Peterson said recently.