Best suburb for property price growth is … not in Sydney

Melbourne has beaten Sydney in a report on Australia’s best suburbs for property price growth over the past decade.

CoreLogic has collated nationwide data on house price growth over 10 years.

Melbourne has claimed the top spot ahead of Sydney in a report on Australia’s best-performing suburbs based on property price growth over the past decade.

The CoreLogic report revealed the top 10 suburbs in both cities recorded triple-digit growth in house and apartment prices, compared with more modest increases outside NSW and Victoria.

The standout performer was the relatively new suburb of Derrimut, 18km from the Melbourne CBD, where prices grew almost 260 per cent. Between 2008 and 2018, median values soared from $183,352 to $656,195.

Sandeep Bharti of YPA Estate Agents said the relative newness of homes was the main reason for the price growth in Derrimut, which was developed in about 2001 and 2002.

“The condition of houses is much better, and it’s close to the freeway,” Mr Bharti said. “It’s still affordable and there’s not a lot of property for sale.”

Apartments at Rushcutters Bay in Sydney recorded the ­second-strongest price growth in the past decade of 180 per cent, with unit values climbing from $286,824 to $802,981.

Houses at Strathfield also posted triple-digit price growth, rising in value from $1,106,932 in 2008 to $3,015,932 this year.

Aaron Papadimatos of Devine Real Estate said much of that growth occurred in the past few years as a result of people seeking bigger blocks close to schools.

“Last year I had a property in Augusta Street where the owners made $200,000 in the space of a few months,” Mr Papadimatos said. “In February they bought it for $2.4 million then in July it sold for $2.6m. They hadn’t touched it.”

 

Other standout performers were Eastwood, Burwood and Riverstone in Sydney, and Ashburton, Box Hill and Heathmont in Melbourne.

Price growth in the other states and territories was much more subdued, with Wattle Grove in Perth recording the biggest rises outside of NSW and Victoria. Median values in the quiet suburb rose almost 90 per cent, from $266,839 to $506,235.

The aptly named suburbs Success and Tapping also posted increases of more than 75 per cent.

Queensland’s best performer was Underwood in Logan City, where house prices climbed 65 per cent, from $363,048 to $601,345, followed by Ashgrove and ­Sunny­bank in Brisbane.

The Gold Coast had Queensland’s best-performing apartments, with Paradise Point units rising from $400,142 to $576,240.

Gillen in Alice Springs did better than anywhere in Darwin, with price growth of 43 per cent.

South Australia’s standout suburb was Grange in Adelaide, where prices increased 49.4 per cent from $490,309 to $732,554.

O’Conner and Downer were Canberra’s best performers with price growth of 70.8 and 60.7 per cent respectively. Tasmania was not included in the report.