The suburbs with highest price growth in Australia have been revealed by new data, with 33 suburbs recording growth figures of 40 per cent or more.
The latest CoreLogic RP Data has unveiled the best-performing suburbs in Australia, with five states and one territory all featuring a suburb that has experienced 40 per cent or more growth year-on-year.
Warrawong and Austral, both in NSW, shared the title for highest-growth suburb in the country – each recording an increase in median values of 50 per cent over the 12-month period.
The median unit value in Warrawong grew to $315,000, while the median house value in Austral grew to $1.8 million.
Development opportunities following a change to zoning laws are the driving factor behind Austral’s strong performance, according to John Pierobon, principal of Grandland Real Estate.
“You've got areas which have been rezoned residential, which will be a minimum of about 15 dwellings per hectare, so where you used to have one little country homestead, or something like that on three acres, now you probably have the potential for 18 to 25 residential homes,” he explained.
The availability of dual-income opportunities in Warrawong is driving a new wave of investor activity in the market, according to LJ Hooker Warrawong director Dusko Vasileski.
“Most of the stock that we sell in Warrawong is from the 1960’s or 1970’s. When the Europeans came to the area, a lot of them did have multiple families living in the one dwelling, so a lot of the properties we sell now have granny flats or rooms downstairs that they subleased. A lot of investors and superfunds are taking advantage of the high rental returns,” he explained.
Mr Vasileski said that the biggest change to the Warrawong market over the past twelve months was the amount of time it takes to sell a property.
“Days on market – I can list and sell a house within two days. I just sold one… I made one phone call, hadn’t even put it on the market, the buyer came into the office and signed the contract,” he said.
Unit values in Adelaide’s Glenside rocketed to $478,000, with the 49.4 per cent increase placing the suburb third in the nation.
Houses in Ipswich’s Dinmore weren't far behind, growing 49.3 per cent in value over the 12 months. The current median house price in Dinmore is $265,000.
Units in Harlaxton, Toowoomba increased by 48.8 per cent based on a median price of $305,000.
Victoria’s Nyah West recorded growth of 47.9 per cent in house prices, based on a median value of $125,750.
Western Australia also made an appearance, in 15th place.
Houses in the town of Boyanup increased by 45 per cent to a current median of $492,500.
The ACT also made the list of 40 per cent-plus performers, with the value of units in Curtin increasing by 43.3 per cent. The current median unit price in Curtin is $497,500.
Only the Northern Territory and Tasmania failed to make the list.
Miena was Tasmania’s best-performing suburb, recording a 38.4 per cent increase in house values to a current median of $220,000.
McMinns Lagoon was the Northern Territory’s strongest suburb, with house prices increasing by 35.6 per cent to a current median of $800,000.
To view each state and territory’s results in more detail, head to the Best Suburbs section.