14th November 2011
Suburban sprawl: the next great place to buy
With the number of homes for sale at a record high across Australia, now is the time to make a move on your next investment property. And there are many suburbs around the country that are ripe for the picking. According to RP Data and The Property Professor, some key areas stand to make an impact on the housing market in the next year.
In Sydney, Inner West suburbs like Marrickville, Enmore and Erskineville are potential areas of growth in varying degrees of gentrification. The proximity to the Sydney CBD combined with a neighbourhood feel and smaller strips of shops and cafes are increasing interest in these areas. Expect to pay anywhere from $486,000 to $790,000 for a property here. Other Sydney suburbs that could demonstrate high rates of capital growth over the next five years include Rockdale, Turrella and Woolloomooloo. Of course, suburbs like Bondi and Darlinghurst continually maintain a strong record of growth in the rental market.
Home construction has boomed in Melbourne this year, with a 40 per cent increase in new units since 2006. Here, it’s the inner-north suburbs that look promising for investors. Coburg, Ascot Vale, West Brunswick, Clifton Hill and Thornbury are prime spots to look for modest one-bedroom homes priced at around $350,000. Other suburbs that have shown the most capital growth over the last decade include Montrose, Malvern and Box Hill.
Nundah and St Lucia are in-demand rental areas in Brisbane, where weekly rents for new tenancies have increased by 3.4 per cent. Other suburbs on the ascent include Taringa, Toowong and Auchenflower, which saw rents jump by 4 per cent. Meanwhile, Perth’s best investment suburbs fall close to the CBD and then at least 20 kilometres away. A 10-minute walk from the CBD, East and West Perth boast median prices around $250,000. Median home values are closer to $300,000 in Armidale and Camillo, a 20-minute drive away.
These are just a few of the suburban areas starting to come into their own in major cities around Australia. They are definite contenders for your next property investment, but they aren’t the only options. What are some other suburban areas you’ve identified as having high potential for growth?