The number one top performing suburb for consistent capital growth in Australia is Wallan, Victoria located approximately 45 km from Melbourne, according to new CoreLogic research.
Houses in Wallan have a median value of $533,062, with a 36.8% median value growth in the past 12 months, 55.2% growth in the past three years and 63.1% growth in the past five years, making it the top performing suburb in Australia.
Wallan was just one of four Victorian suburbs that made it in the national top five and just one of the 41 that made it in the national top 50 performing suburbs.
Ranked second for the Top Performing Suburbs list is South Hobart in Tasmania. South Hobart is the only suburb that made the cut from Tasmania. It has a median value of $623,094, growing 35.3% in median value over the past 12 months, 46.7% in the past three years and 64.1% in the past five years.
The July 2018 edition National Top Performing Suburbs Report identifies suburbs where median value growth across 12 months, 3 years and 5 years has been higher than 18%. The formula, together with a range of other criteria, identifies suburbs and property types that have demonstrated consistent growth historically.
“Every suburb in the top 50 national report had median value growth higher than 18%,” said Tim Lawless, Research Director at CoreLogic. “The range of growth for 12 months performance was between 36.8% as the highest and 22.9% at the lowest. The range of median value growth across 5 years was 105.9% and 18.7%.”
The report was created by analysing the house and unit markets across more than 12,000 suburbs across Australia. The initial task was to identify areas that had a reasonable volume of sales to ensure the suburbs put forward were not volatile markets. As such, suburbs with fewer than 50 house or unit sales over the last 12 months were removed, as were suburbs that did not record median value growth across 12 months, 3 years, 5 years or 10 years. As a final step, the CoreLogic research team conducted a ‘sanity check’ to ensure the final list did not include any obvious poor choices such as an over-dependency on mining towns or places with higher risk ratings.
Suburbs were then ranked from highest to lowest by their median value performance over the past 12 months to one decimal point. Where suburbs had identical growth levels, the ranking next looked at 3 year growth. The Top Performing Suburbs Report is available at national and state levels.
Top 5 Performing Suburbs by Consistent Median Value Growth
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Victoria dominated the national list with 41 of the 50 suburbs. NSW had six on the list, while there were only two in Queensland, and just one in Tasmania.
“These results are in alignment with the performance of the housing market generally being a two speed market of Victoria and NSW performing more strongly than the rest of the country,” Mr Lawless said.
The third top performing suburb was Hastings, Victoria with a median value of $410,955 for unit properties. Hastings showed a 33.6% growth in medium value over the past 12 months, 43.7% growth in the past three years and 43.0% in the past five years.
Queensland’s two suburbs on the list ranked twenty-fifth and fiftieth. Underwood, ranked number 25, has a median value of $601,345 with a 24.4% growth in the past twelve months. Auchenflower, ranked number 50 on the list, has a median value of $1,096,808 and showed a 22.9% growth in the past twelve months.
Median values for houses ranged from $300,461 in Cooma, NSW ranked fortyseventh on the list to $1,622,991 in Box Hill, VIC ranked tenth on the list. Median values for units ranged from $387,189 in Cranbourne, VIC ranked forty-fifth to $1,116,939 in Balwyn North, VIC ranked twentieth on the list.
The July 2018 edition CoreLogic Top Performing Suburbs Report is based on listings and AVM data current to May 2018 and settled sales data to March 2018. The report is available for purchase on the CoreLogic Report Store for $99.