New report identifies top 100 suburbs where growth is constant for properties under $500,000.
The most affordable suburb in Australia with the most consistent median value growth is Coolaroo in Victoria according to a new report from CoreLogic.
Coolaroo is 16.8km north of Melbourne, near the suburbs of Broadmeadows and Somerton. Houses in Coolaroo have a median value of $475,235, growing by 33.4% over the past 12 months and 64.2% over the past three years making it first in the new affordable rankings.
Victoria dominated the national list of top affordable performers with 62 out of the top 100 suburbs located in the state – with four in the top five suburbs.
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Close to Coolaroo is Dallas which ranked fifth on the list with a median value of $455,560 and capital growth over the past 12 months of 26.2%. Rosebud on the Mornington Peninsula is the strongest suburb for units with growth of 29.3%.
NSW had 20 suburbs in the list, Tasmania had 12, Queensland had four and WA had two. South Australia, the Northern Territory and ACT had no suburbs on the list.
The Top Affordable Suburbs Report is a new report from CoreLogic that identifies suburbs where property values are below $500,000 and have strongly performing capital growth.
It identifies the top 100 suburbs where median value growth across 12 months has been higher than 13%. The formula, together with criteria that confirm strong and consistent volumes of property sales, identifies suburbs and property types that have demonstrated consistent growth historically but where prices remain under the $500,000 mark.
“While a lot of the attention has been on the affordability of Tasmania, the Top Affordable Suburbs report shows that when you also take long term value growth into the equation, then Victoria has performed more strongly,” said Tim Lawless, Research Director at CoreLogic.
“The range of growth for 12 months performance in Victoria was between 33.4% as the highest and 13.4% at the lowest. The range of median value growth in Victoria across 5 years in the under $500,000 market was 71.8% and 15.7%
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 were removed, as were suburbs that did not record median value growth across 12 months, 3 years, 5 years or 10 years.
Suburbs where the median value was higher than $500,000 were then taken out of the assessment. 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 Affordable Suburbs report is available at national level.
Housing market suburbs made up 60 of the top 100, while 40 suburbs were based on capital growth for units.
Houses in Cooma, near the snow fields were the top performing affordable suburb in NSW, ranked number 20 nationally with 12 month growth of 22% and a median value of $302,401.
The top affordable growth suburb in Tasmania was houses in Moonah with a median value of $381,754 and median value growth of 19.4%. In Queensland, it was units in Palm Beach where the median value was $474,556 and 22.7% growth over the past 12 months.
Median house values in the report ranged from $206,622 in Bridgewater in Tasmania up to $499,107 in Belmont in Victoria. Median unit values ranged from $246,950 in Glenorchy in Tasmania to $499,724 in Long Jetty, NSW.
The highest frequency value range in this report is between $405,663 and $499,724 with 58 suburbs within the range. There were 36 suburbs within the $300,000 value range, and just five suburbs in the $200,000 bracket.
The CoreLogic Top Affordable Suburbs Report is based on AVM data current to April 2018 and is available for purchase on the CoreLogic Report Store for $99.