The two capitals have recorded the largest house and unit price growth over the past 10 years, new research has revealed.
According to the Top Growth Suburbs Over the Past Decade report from onthehouse.com.au (a CoreLogic business), the Melbourne suburb of Derrimut and the Sydney suburb of Rushcutters Bay recorded the largest national house and unit price growth since May 2008.
The research, which compared median home values from May 2008 to May 2018, revealed that houses in Derrimut, located in Melbourne’s west, recorded the largest national price growth over the past 10 years, with home values rising by 257.9 per cent, from $183,352 in May 2008 to $656,195 in May 2018.
The sharpest recorded national unit price growth was in Rushcutters Bay, located in Sydney’s east, where prices rose by 180 per cent, from $286,824 to $802,981 over the same period.
Strathfield, located in Sydney’s inner west, recorded the largest house price growth in NSW and the sharpest national median house price growth, with values rising by 172.6 per cent, from $1,106,358 in May 2008 to $3,015,932 in May 2018.
Bondi Junction in Sydney’s east recorded the largest national median unit price growth, with prices increasing by 153.6 per cent, from $507,503 to $1,287,022.
Altona North in Melbourne’s southwest recorded the largest unit price growth in Victoria, rising by 164 per cent, from $248,314 in May 2008 to $655,491 in May 2018.
In Queensland, the suburb of Underwood, located in Brisbane’s southeast, topped the state’s list for price growth over the past decade, with house prices rising by 65.6 per cent, from $363,048 to $601,345. The largest unit price growth was in Paradise Point on Queensland’s Gold Coast, where prices jumped by 44 per cent, from $400,142 to $576,240.
Meanwhile, Wattle Grove in Perth’s east recorded the largest house price growth in Western Australia over the past decade, up by 89.7 per cent, from $266,839 in May 2008 to $506,235 in May 2018. Unit prices in West Leederville, located in Perth’s northwest, experienced the sharpest increase in Western Australia, rising by 48 per cent, from $317,847 to $470,316.
The coastal suburb of Grange in Adelaide’s west recorded the sharpest house price growth in South Australia over the past decade, with values rising by 49.4 per cent, from $490,309 to $732,554. Unit prices in Norwood, located in Adelaide’s east, experienced the largest increase, up by 35 per cent, from $383,483 to $517,731.
In the ACT, the best-performing suburb for house price growth was O’Connor in northern Canberra, where values increased by 70.8 per cent, from $620,447 in May 2008 to $1,059,701 in May 2018. The Canberra suburb of Mawson recorded the largest unit price growth, up by 73.6 per cent from $288,983 to $501,556.
The best-performing suburb for house price growth in the Northern Territory was Gillen in Alice Springs, where values rose by 43 per cent, from $319,154 in May 2008 to $456,233 in May 2018. The largest unit price growth was in the Darwin suburb of Larrakeyah, where values jumped by 18.6 per cent from $377,467 to $477,736.
House and unit price trends in Tasmania were not recorded in the report.
Demand dwindling over the past year
The stats follow on from a Property Outlook report from realestate.com.au, which highlighted that while Sydney and Melbourne remain the two most popular property markets in the year to July 2018, demand is declining.
Interest in property in Sydney has seen the biggest drop in demand, falling by 22.5 per cent over the last year. This was fairly consistent for both houses and apartments, which saw demand decline by 22.5 per cent and 23.1 per cent, respectively.
The median price also saw a decline by 7.4 per cent over the last year to $815,000. The report suggested that the price decline would likely continue over the rest of the year.
Meanwhile, the report outlined that there were signs of positivity in the Melbourne market despite demand falling year-on-year (dropping by 6.1 per cent).
There was less interest in demand for housing in the Victorian capital over the year (falling by 12.8 per cent), but apartments had been gaining traction with demand rising by 4.5 per cent.
The median price was also rising, but barely, at 0.5 of a percentage point to $653,000. However, the researchers argued that there is a chance for this growth to be reversed throughout the rest of the year.
From Mortgage Business