The top 50 growth suburbs

The diverse nature of the nation’s property market – and the impact of the resources boom – is reflected in the list of Australia’s top 50 growth suburbs for the year to 31 January (see table below).

Two-thirds of the top performers are close to capital cities; the rest are in regions dominated by nearby mining operations.

These regional locations range from the resource-driven towns of Kalgoorlie, Whyalla, Broken Hill and Clermont, to the seachange markets of Cable Beach near Broome in the north-west of WA, Booragul on the shores of Lake Macquarie and Alexandra Headland in the heart of the Sunshine Coast.

Many of these markets are moving from a low base, such as Broken Hill, where the median house price is still just $120,000.

The highest number of top-growth suburbs are within Adelaide, Australia’s fastest growing capital city market.

Over the past year, house values within the broader Adelaide market have increased by 29.5%.

Despite this rapid rate of growth, Adelaide still boasts the most affordable house prices of any capital city. Thirty per cent – 15 of the 50 top suburbs – are within the greater Adelaide metro area, further highlighting the city’s strong property market.

The central and northern Queensland coastline is also heavily represented in the growth list. Many of these seaside townships are being lifted by strong demand from the mining sector. Often resource workers will base their families along the coastline for the lifestyle benefits, while they work in the nearby Bowen Basin. Strong population growth along the Queensland coast is also a sold market driver.

With growth now slowing in most major markets, selecting locations for the best capital growth is again being driven by strategic considerations, and the importance of solid research is becoming paramount. Buyers are gaining the upper hand in the market and properties are taking longer to sell.

Historically, the best capital growth has been found in the inner-city markets, coastal markets and resource-intensive locations, and these markets are likely to continue to provide some protection from any downturn.

However there may be some counter-intuitive opportunities during 2008. The mortgage belts of Sydney have had a rough trot since the end of 2003 and the most strategically placed locations such as the Macarthur districts are now showing strong investment fundamentals: low prices, strong yields and well above average population growth.

Also, the fringe suburbs of each capital city, where undersupplied rental markets are creating high yields, are also becoming more popular.

For example, the middle-ring southern and western suburbs of Brisbane provide low housing prices coupled with strong rental markets. These suburbs include Wacol, Logan and Ipswich and are also well placed for investment.

Rental yields in these outer suburbs are typically above average and there is growing demand from both investors and first-home buyers.

Australia’s top 50 growth suburbs
Rank	Suburb	No. sold	Median price	12 month growth	Five-year average	Weekly median rent	Gross yield
1	Mont Albert, Vic	46	$1,035,000	50.0%	12.5%	$430	2.2%
2	Glen Huntly, Vic	28	$753,250	49.9%	12.5%	$465	3.2%
3	Castlecrag, NSW	58	$1,810,000	49.0%	11.2%	$800	2.3%
4	Underdale, SA	44	$455,000	48.0%	11.0%	$315	3.6%
5	South Hedland, WA	73	$380,000	47.6%	13.7%	$750	10.3%
6	Carlton, Vic	74	$750,000	47.1%	12.9%	$420	2.9%
7	Ingham, Qld	75	$235,000	46.9%	11.2%	$183	4.0%
8	Cable Beach, WA	33	$800,000	46.8%	18.1%	$800	5.2%
9	Collinsville, Qld	60	$212,500	46.6%	22.5%	$380	9.3%
10	Pasadena, SA	42	$443,000	45.2%	11.1%	$295	3.5%
11	Echunga, SA	26	$377,500	45.2%	11.0%	$220	3.0%
12	Fig Tree Pocket, Qld	54	$850,000	44.7%	14.6%	$480	2.9%
13	Broken Hill, NSW	539	$120,000	44.6%	12.5%	$150	6.5%
14	Glen Eden, Qld	49	$375,000	44.2%	17.8%	$315	4.4%
15	Calliope, Qld	83	$360,000	44.0%	12.3%	$270	3.9%
16	Semaphore South, SA	23	$540,000	44.0%	14.8%	$360	3.5%
17	Highgate, SA	21	$705,000	43.6%	13.7%	$410	3.0%
18	Northbridge, NSW	96	$2,047,000	43.3%	12.3%	$800	2.0%
19	Elizabeth, SA	22	$208,250	41.7%	11.9%	$195	4.9%
20	South Brighton, SA	55	$445,800	41.5%	11.0%	$295	3.4%
21	Alexandra Headl’d, Qld	40	$747,500	40.8%	15.9%	$380	2.6%
22	Bronte, NSW	79	$2,025,000	39.7%	13.1%	$670	1.7%
23	Highgate Hill, Qld	55	$781,500	39.3%	14.4%	$340	2.3%
24	Clermond, Qld	48	$285,000	39.0%	16.6%	$340	6.2%
25	Whyalla, SA	72	$285,000	39.0%	11.7%	$350	6.4%
26	Gilberton, SA	17	$778,000	38.9%	8.9%	$450	3.0%
27	Kyle Bay, NSW	11	$1,218,000	38.8%	12.8%	$440	1.9%
28	Bayview, NT	21	$680,000	38.8%	21.0%	$675	5.2%
29	Mont Albert North, Vic	33	$735,000	38.7%	14.7%	$400	2.8%
30	Kensington Gardens, SA	35	$692,000	38.4%	13.6%	$350	2.6%
31	Crystal Brook, SA	12	$166,000	38.3%	12.0%	$165	5.2%
32	Ivanhoe East, Vic	25	$1,051,000	38.3%	11.8%	$490	2.4%
33	Palmyra, WA	19	$795,000	38.3%	15.8%	$350	2.3%
34	Leabrook, SA	16	$1,005,000	38.1%	15.9%	$340	1.8%
35	Wacol, Qld	27	$295,000	38.0%	15.9%	$260	4.6%
36	Abbotsford, Vic	65	$614,000	37.9%	11.6%	$420	3.6%
37	Glenelg, SA	20	$720,500	37.9%	11.3%	$328	2.4%
38	Middle Park, Vic	63	$1,241,000	37.9%	13.2%	$530	2.2%
39	Cumberland Park, SA	35	$497,000	37.7%	11.5%	$320	3.3%
40	Unley, SA	49	$755,000	37.5%	13.3%	$430	3.0%
41	Bellfield, Vic	16	$398,000	37.2%	15.4%	$260	3.4%
42	Hyde Park, Qld	34	$440,500	36.8%	13.5%	$280	3.3%
43	Seddon, Vic	55	$500,000	36.6%	14.4%	$320	3.3%
44	Booragul, NSW	19	$277,000	36.5%	11.2%	$230	4.3%
45	Kalgoorlie, WA	63	$275,000	36.1%	10.9%	$330	6.2%
46	Wonga Park, Vic	37	$659,000	35.9%	12.4%	$345	2.7%
47	Ethelton, SA	34	$326,000	35.8%	13.3%	$290	4.6%
48	Hectorville, SA	47	$400,000	35.6%	12.1%	$273	3.5%
49	South Townsville, Qld	46	$403,750	35.5%	16.0%	$280	3.6%
50	Whyalla, SA	70	$250,500	35.4%	10.6%	$350	7.3%