Buying a property in today’s climate will mean you need to have your wits about you, but it’s not all bad.
Realestate.com.au has crunched the numbers and revealed the top performing suburbs in the country for growth in value and returns for investors.
REA Group chief economist Nerida Conisbee unpacked the data with Auction Day.
Top long-term performers
Conisbee singled out Adelaide as one of the top performers for long term growth in property values.
“Adelaide has been phenomenal, we are now seeing around 25 $1 million plus suburbs and almost all of them have seen double-digit growth,” she said.
Houses in Sydney suburbs Vaucluse and Roseville have seen strong demand thanks to buyers looking for prestige and quality.
“Even though we are seeing some challenging conditions, we are seeing this flight to quality in Sydney, which we didn’t see in the boom.
“(In the boom) we saw a drawing away from very expensive suburbs as people got a little bit nervous about them. But we are starting to see more money flow that way,” Conisbee said.
High yield suburbs for investors
These are the suburbs delivering healthy cash flow for investors.
Surprisingly, mining towns like Newman and Dysart made the list of high yield suburbs and are seeing good cash flow for investors.
Those markets are starting to turn around in terms of price growth, Conisbee said.
“Now is actually a very good time to be looking at mining towns.
“You do need to be very careful and very selective over which ones you buy in. But given the prices seemed to have stabilised, if you buy now you can lock in a good tenant and get some decent yield. It’s actually not a bad place to look,” she said.
Watch the video for the full analysis and Conisbee’s comments on whether the financial services royal commission will affect the property market.