(Realestate) – Property in capital cities can vary significantly at a suburb level – and Australia’s 10 best price performers are concentrated in just four metro areas.
According to new realestate.com.au data, the top 10 suburbs are within the metropolitan regions of Adelaide, Sydney, Hobart and Melbourne, all achieving double-digit median price growth for the 12 months to 31 May.
Find out how your suburb performed with our interactive:
Adelaide fared strongest with four suburbs making the list. Highbury, in the city’s north, came in strongest with a 26% increase to a median sale price of $587,500.
North Adelaide (22%), Smithfield Plains in the north (20%) and Marino in the south (20%) also featured in the list.
Sydney’s Northern Beaches stood out in a steadying metro market, with both Palm Beach (24%) and Collaroy (19%) achieving solid growth for the 12-month period. Palm Beach’s median sale price of $3.4 million was by far the highest on the list, followed by Collaroy‘s $2,795,000 median.
In Hobart, Chigwell (23%) and Dodges Ferry (20%) were the top performers with median sale prices of $326,000 and $360,000, respectively, signalling demand in a very different market to the Sydney stars.
Warburton (20%) and Whittlesea (19%) in Melbourne’s east and north-east were the only Victorian entries.
The realestate.com.au data looked at suburbs with at least 30 homes sold for the year ending May 31 2019, which were located within 30 kilometres of a capital city.
Palm Beach in Sydney’s Northern Beaches achieved 24% price growth. Picture: realestate.com.au/buy
No suburbs in the ACT, NT, Queensland and Western Australia made the top 10.
Their absence speaks to broader activity in their capital-city markets, according to Nerida Conisbee, realestate.com.au’s Chief Economist.
“They are just generally a lot weaker markets, especially compared to Adelaide and Hobart. WA and NT are very skewed markets… Brisbane has a lot of stability but not a lot of price growth; it just moves along,” Conisbee says.
Access to more affordable housing is one of a number of factors driving prices up in Adelaide, she says.
“Adelaide’s been going well for quite some time. A lot of it has to do with the fact the city’s economy is doing well. Rental growth has been happening for a while; people are moving to Adelaide for jobs and investors are very interested.
“Owner-occupiers and investors have both been seeing it as far more appealing than cities like Sydney and Melbourne. There’s demand and you can still buy in these suburbs, it’s far cheaper.”
Conisbee says Hobart used to be “very cheap, but not anymore”, so buyers who are priced out have moved to other suburbs.
Highbury in Adelaide had the highest growth for the 12 months to 31 May 2019. Picture: realestate.com.au/sold
“It’s a ripple effect. We were seeing a lot of activity in premium suburbs like Battery Point and Sandy Bay, but first home buyers or investors are looking at other areas, which has triggered price growth,” she says.
“In Melbourne, outer suburban areas are offering big homes on big blocks at quite an affordable price. A lot of those areas won’t likely continue to see that kind of price growth; it’s just reflective of some high demand.”