The top Australian suburbs for long term investment

When investing in property, it is incredibly rare and difficult to improve your financial position in a short amount of time. Being patient and investing for the long term is vital if you want to achieve success (and wealth) through property investment.

Leading property investment expert Michael Yardney (of propertyupdate.com.au) advises investors that “securing proven, high performing property that grows consistently over the long term is the only way to ensure you make it to the top of the property ladder”.

Based on CoreLogic RP Data from March 2015 (reported on news.com.au) we’ve developed a shortlist of the top Australian suburbs you should consider for investment that have experienced the most solid long term price growth over the past decade.

We have also included each area’s gross rental yield (GRY) which is a good indicator of whether investing in a particular suburb has potential for high return on investment. GRY shows how much cash the property produces annually as a percentage of its value.

What are the top performing Australian suburbs over the past 10 years?

Sydney

1. Concord West

Units in Concord West, 8 kilometres from Sydney’s CBD, recorded the highest annual growth rate of 10.4 per cent where the median unit price is $840,000. Concord West has a GRY for units of 2.93 per cent.

A reasonably priced listing located at 64-66 Queen Street, Concord West is a modern boutique two-bedroom apartment with a starting price of $629,000.

64-66 Queen Street, Concord West

2. Waitara

Coming in just behind Concord West, is the Sydney suburb of Waitara located 20 kilometres from the CBD. Waitara had a solid median annual growth rate of 10 per cent and an average house price around $1.4 million. Waitara has recorded a GRY for houses of 2.74 per cent.

The cheapest listing currently on homely.com.au is a one bedroom apartment at 2306/32 Orara Street, Waitara with a price tag of $469,000.

Melbourne

1. Altona North

Altona North in Melbourne delivered an annual growth rate of 10.6 per cent, has an affordable median unit price of $485,588 and solid GRY for units of 3.42 per cent.

A brand new two-bedroom unit is on the market with an asking price between $465,000 and 485,000 at 2/128 Chambers Road, Altona North.

2/128 Chambers Road, Altona North

2.  Burnley

Located just 4 kilometres from the CBD Burnley came in second with a yearly growth rate of 10.5 per cent. Probably due its proximity to the city, Burnley is on the pricier side with a median house price of $1.27 million but has a promising GRY for houses of 3.13 per cent.

Brisbane

1. Bundamba

Bundamba showed a solid rate of growth, with an average annual price growth of 11 per cent since 2005 and a recorded $299,900 median unit price. Bundamba has a GRY for units of 4.51 per cent.

A two-bedroom townhouse is on the market for the bargain price of $195,000 located at 8/4 Mary Street, Bundamba.

8/4 Mary Street, Bundamba

2. Goodna

Just 20 kilometres from Ipswich CBD, Goodna recorded a median annual growth of 8.7 percent with a median unit price of $310,000. Units Goodna have a GRY of 4.86 per cent.

The cheapest unit on the market at the moment is located at 14/5 Spalding Crescent, Goodna for $199,000.

Adelaide

1. Saint Peters 

Units in St Peters, three kilometres from Adelaide’s CBD, had an average growth rate of 11.4 per cent and a median price of $635,000. St Peters shows a GRY for units of 4.39 per cent.

A renovated two-bedroom unit at 6/102 Seventh Avenue, St Peters is a great prospect for investors priced from $330,000 to $350,000.

6/102 Seventh Avenue, St Peters

2. Virginia

The Adelaide suburb of Virginia showed a median growth rate of 10.6 per cent over the past ten years and an average house price of $485,000.

A good opportunity for investment is a four-bedroom house located at 17 Claret Avenue, Virginia with an asking price between $460,000 to 479,000.

Perth

1. Wellard

Situated 35 kilometres outside Perth’s CBD, Wellard showed a very promising growth rate of 18.1 per cent and a decent average house price of $460,000. Wellard has a GRY for houses of 4.86 per cent.

A bargain priced (369,000-$389,000) three-bedroom house at 26 Moonstone Pway, Wellard would be an ideal investment.

26 Moonstone Pway, Wellard

2.  Hammond Park

Hammond Park recorded a respectable annual growth rate of 16.1 per cent, median house price of $590,000 and has a GRY for houses of 4.21 per cent.

A great opportunity for investment is this three-bedroom home at 3/31 Barfield Road, Hammond Park with an asking price of $429,000.  

Darwin

1. Rosebery

Darwin’s strongest performing suburb, Rosebery, documented an impressive annual growth rate of 23 per cent and an average house price of $610,000. Houses in Rosebery have a high GRY of 5.73 per cent.

A reasonably priced listing is ($565,000) currently available at 19 Richards Crescent, Rosebery.

19 Richards Crescent, Rosebery

2. Farrar

Placed 17 kilometres from Darwin’s CBD, Farrar had a high growth rate of 22.5 per cent and an average house price of $617,000, with a GRY for houses of 5.44 per cent.

One of the cheapest three-bedroom houses available is located at 1 Savage Close, Farrar and priced at $510,000.

Hobart

1. South Arm

Located 17 kilometres from Hobart’s city centre, South Arm showed the highest average growth rate in Hobart over the past ten years of 8.1 per cent and a median house price of $390,000. South Arm shows a GRY for houses of 3.9 per cent.

A reasonably priced property at 40 Blessington Street, South Arm is a two-bedroom home with an asking price of $315,000.

40 Blessington Street, South Arm

2.  North Hobart

Only two kilometres from the CBD, North Hobart was the second best performing Hobart suburb with an annual price growth rate of 6.1 per cent and recorded an average unit price of $401,000. Records indicate North Hobart units have a GRY of 4.95 per cent.

A good investment opportunity is a three-bedroom house at 335 Argyle Street, North Hobart for offers over $460,00.

Once you’ve crunched all the numbers and figured out where you can afford to buy, we recommend expanding your research beyond the stats. Look into the suburbs proximity to the CBD, lifestyle amenities, public transport and upcoming infrastructure projects, a practical configuration with rental appeal, and even suburb reviews to see what people think about that particular area.

So remember patience is key when investing in property, the longer you own a property the better chance you have for it to appreciate in value and to ultimately build upon your wealth and expand your assets.

Happy house hunting!

From the Homely team