2018’s fastest-growing suburbs in every Australian state
Capital city house value growth is not what it used to be. In fact, average values actually decreased over March in Sydney, Melbourne and Adelaide, CoreLogic RP Data shows. Other cities aren’t faring much better, with all but Hobart and Darwin recording small increases of under 0.5 per cent over the last month.
It may be better to look elsewhere if you’re looking for capital gains. To help you get started we’ve compiled a list of the regions in each state where property prices are increasing fastest.
Geelong’s gross state product increased by 20 per cent over 2017
For years, Illawarra was the country’s fastest growing regional area, but CoreLogic’s newest Regional Market Activity report shows that Geelong took the crown during 2017.
The Victorian city saw its average house value grow by an impressive 14.6 per cent. Units in Geelong also experienced strong value growth, increasing by 10.7 per cent.
Here in Geelong, the drivers behind property value increases are clear – the city is currently experiencing a near unprecedented period of economic and population growth. Geelong’s gross regional product increased by almost 20 per cent over 2017, and its population is expected to increase from 238,000 to 320,000 by 2020, according to Enterprise Geelong.
Newcastle and Lake Macquarie, NSW
Strong house price growth make Geelong a brilliant location to both live and invest.
On the coast 130km north of Sydney is Newcastle and Lake Macquarie, a city of over half a million people that has recently seen rapid property value growth. CoreLogic RP Data shows that the area’s average house value increased by 12.9 per cent over 2017.
Another town in NSW that demands attention is Illawarra. This area has an incredibly strong history of property price growth, and had the fastest growing average unit value in the country over 2017, with an increase of 12.8 per cent.
The Gold Coast and Sunshine Coast, QLD
In anticipation of the 2018 Commonwealth Games, local and state government poured $320 million into infrastructure and public domain improvements in the Gold Coast.
Property prices have responded, growing by 7.7 per cent over 2017 to reach an average of $615,000, making the Gold Coast the fastest growing area in the entire state. The Sunshine Coast gets a silver medal, growing by 6.2 per cent over the same period.
Higher returning properties in smaller towns usually come with higher risk.
Coober Pedy, SA
Recently South Australia has seen property price growth at levels far lower than Victoria, New South Wales or Queensland’s, but if you know where to look, opportunities can still be found. If you’re willing to buy in a far out location Coober Pedy, a small town in the North of the state, enjoyed an average property value increase of 10.77 per cent over 2017.
Despite that impressive number, the town’s property market better lends itself to long term investment thanks to an average rental yield of 12.28 per cent. That rental yield will certainly prick the ears of several property investors, however it’s important to remember that higher returning properties in smaller towns usually come with higher risk.
Narrogin is another out of the way investment location, sitting 192km southeast of Perth along the Great Southern Railway line. It’s got a small population of under 5,000, a relatively low unemployment rate, and a median weekly income that’s only slightly lower than the Australian average – impressive for such a small and remote town.
What’s even more impressive is that the average property price here grew by an eye watering 43.3 per cent, during 2017.
Hobart property has been increasing in value faster than any other capital city for over a year now. It appears that growth has started to ripple outwards, as Tasmania’s second biggest city Launceston enjoyed huge property price growth over 2017.
Your Investment Property data shows that the median property price here increased by 16.36 over the year. Despite that growth the median price here is still just $448,000 for houses and $328,000 for units.
Buying property in areas you’re unfamiliar with can be risky, especially if you don’t do your research. To make life easier, and gain a local’s insight, find an experienced real estate agent in the area for help finding the right investment.