Want to know which suburbs exhibited the most capital growth over the last decade?
Recently the REA group complied the top 10 list and not surprisingly they were all in Sydney and Melbourne.
Leading the pack was the Sydney suburb of Tamarama where the median house price increased at an average of $300,000 a year for the past 10 years, increasing from $3.8 million in 2008 to $6.8m in 2018.
REA Group chief economist Nerida Conisbee told the Australian this is the result of a low turnover of property, minimal development and desirability.
Taking the number two spot was East Melbourne, 1.5km from the Melbourne CBD, where median house prices increased $289,000 a year between 2008 and 2018 from $1.26m to $4.15m.
Here’s the list of suburbs with the highest capital growth:
- Tamarama, NSW
- East Melbourne, Vic
- Logueville, NSW
- Bringelly, NSW
- Double Bay, NSW
- Rose Bay, NSW
- Coogee, NSW
- Bellvue Hill, NSW
- Wiloughby, NSW
This REA list looks at the dollar value growth rather than percentage capital growth and of course Melbourne and Sydney’s upper crust suburbs are tightly held, with little turnover but remain in strong demand by high net worth individuals who are prepared to pay to live there.
While this list makes interesting reading, not all properties in these locations are what I’d call investment grade properties.
While a $4million dollar mansion in Coogee or Toorak would make a lovely home, they’re not likely to make a good investment property.
On the other hand, well located appropriately appointed apartment in these suburbs have performed well over the last decade and make excellent investments.
In fact in that time the team at Metropole have bought many apartments in suburbs like these:
Source: The Australian