The Age.com.au
So much for location, location, location.
All but one of the top ten performing property markets in Australia over the past decade are anything but central.
Topping the list is Oakdowns, a fringe suburb of Hobart, boasting a short drive east from Bellerive Oval or south from Hobart Airport. Median unit prices there have risen almost 35 per cent annually for the past 10 years to soar to $275,000, according to data compiled by RP Data.
The next eight rankings are similarly dominated by fast-growing suburbs on the fringes of Perth - such as Herne Hill and Jindalee - or Sydney with its Blairmount and Beecroft.
Among locations within a short distance of a city centre, only Melbourne|s relatively inner-city suburb of Gardenvale sneaks into the top 10 in price gains. Units there clocked up an average rise of 32 per cent annually over the past decade, to a median price of $328,000.
Rising house prices have sparked alarm from families struggling to enter the market and even the Reserve Bank chimed in this week, warning that more increases are likely unless the economy diverts extra resources to housing to cope with a rising population. The latest housing finance figures indicate the average first-home buyer|s mortgage is now $284,700 - more than the average outstanding home at $282,800.
RP data, though, noted while the entry costs are rising for new home buyers, the areas they tend to move to have been the star performers over the past 10 years.
'Interestingly, the analysis revealed that affordable suburbs witnessed the strongest growth over the decade,' RP said in a release. It noted that 13 of the top 20 performers have a current median price below $300,000, while 18 of them are sub-$400,000.
At a regional level, the country|s best-performing location was also away from the major centres. The north Queensland town of Silkwood, located in the sugar-growing region south of Innisfail and Cairns, reported an average increase of 35 per cent in its houses over the past decade, bringing the median price to $235,000.
That|s about half the current median dwelling price of $449,000 in the country|s capital cities, the report said.
RP Data noted the regional strong growth had come from a very low base 10 years ago.
"Undoubtedly new developments have helped boost prices in many of these areas," it said. "A cause for concern within these more affordable areas will likely be the longer-term capital growth prospects of these suburbs.
"Over the longer term the prospects aren’t so rosy.
"Longer term when reality kicks in and the lack of amenity strikes home the growth prospects tend to not be as strong".
www.theage.com.au/business/fringe-dwellers-top-property-gains-20100312-q2qv.html |
02.08.10
