Investor magazines' 2011 unit hotspots are more misses than hits two years on

Investor magazines' 2011 unit hotspots are more misses than hits two years on
Investor magazines' 2011 unit hotspots are more misses than hits two years on

The Queensland mining towns of GladstoneToowoomba and Chinchilla account for three of the five locations that have delivered median unit growth above inflation (around 5% over two years) when measured by both RP Data and Australian Property Monitors (APM) – the two information providers used by Your investment property and Australian Property Investor in compiling their Top 100 lists.

In line with Property Observer’s analysis earlier this week of the 21 collective detached housing hotspots which appeared in both magazines 100 'best buy' suburbs of  two year's ago, analysis of collective unit hotspots also reveal that very few have delivered any meaningful growth to date.

The other two are Paddington, the trendy inner Brisbane suburb and Baulkham Hills, about 31 kilometres north west of the Sydney CBD and part of the Greater Western Sydney growth corridor.

Property Observer looked at the movement in medians of both RP Data and Australian Property Monitors (APM) to also see how the two major data providers differed on the same location.

Similar analysis found just four hotspot markets where house prices had delivered inflation-beating returns to investors over the same period.

Averaging out results across both lists, Gladstone is the standout with 27% price growth between 2011 and 2013.

Two points are worth mentioning:

Firstly, that most astute property investors would take a long term view of their investments – indeed some of these non-performers may turn around in the coming years.

However, many investors would expect to see signs of capital growth in so-called hotspots over a two-year period and certainly not the declines recorded in some locations.

Secondly, astute investors would also be aware that investing in a suburb showing strong capital growth does not necessarily mean your investment property will perform in line with the overall suburb.

You could pick a turkey investment among a so-called ‘hotspots’. Equally, you could make an astute selection in a suburb that has not performed well.

It comes down to the exact street location (even sometimes what side of the street your property sits), the type of property you choose, what you pay for it, whether it appeals to tenants, the cost of maintenance and many other factors.

Hotspot guides can be good starting points if you're looking for a suitable investment, but always take the recommendations with a grain of salt and due your own research and due diligence.

The figures below are sourced from the 2011 and 2013 hot 100 and top 100 editions of Australian Property Investor magazine and Your investment property respectively: 

RP Data figures

 

Suburb

State

Median unit price 2011

Median unit price 2013

% change over two years

Hit or miss?

1.

Ainslie

ACT

$680,000

$728,000

7%

HIT

2.

Townsville

Qld

$473,000

$399,000

-15.6%

MISS

3.

Gladstone

Qld

$388,000

$475,000

+22.4%

HIT

4.

Rockhampton

Qld

$389,000

$325,000

-16.4%

MISS

5.

Toowoomba

Qld

$217,000

$345,000

+58.9%

HIT

6.

Chinchilla

Qld

$293,000

$310,000

+5.8%

HIT

7.

Paddington

Qld

$433,000

$492,000

+13.6%

HIT

8.

Dulwich Hill

NSW

$475,000

$485,000

+2.1%

MISS

9.

Baulkham Hills

NSW

$479,000

$520,000

+8.5%

HIT

10

Bathurst

NSW

$212,000

$227,000

+7%

HIT

11.

Port Macquarie

NSW

$290,000

$265,000

-8.6%

MISS

12.

Geraldton

WA

$265,000

$212,000

-20%

MISS

13.

Broadmeadows

Vic

$334,000

$265,000

-20.6%

MISS

14.

Thornbury

Vic

$385,000

$377,000

-2%

MISS

15.

Warrnambool

Vic

$260,000

$242,000

-6.9%

MISS

16.

St Kilda

Vic

$476,000

$440,000

-7.5%

MISS

17.

Brunswick

Vic

$420,000

$416,000

-0.9%

MISS

18.

Balaclava

Vic

$453,000

$466,000

+2.8%

MISS

19.

Port Noarlunga

SA

$219,000

$260,000

+18.7%

HIT

20.

Kensington

SA

$363,000

$404,000

+11.2%

HIT

Source: Australian Property Investor magazine, Your investment property magazine, RP Data

APM figures 

 

Suburb

State

Median unit price 2011

Median unit price 2013

% change over two years

Hit or miss?

1.

Ainslie

ACT

$690,000

$715,000

+3.6%

MISS

2.

Townsville

Qld

$443,000

$393,000

-11.2%

MISS

3.

Gladstone

Qld

$319,000

$475,000

+32.8%

HIT

4.

Rockhampton

Qld

$330,000

??

??

??

5.

Toowoomba

Qld

$281,000

$301,000

+7.1%

HIT

6.

Chinchilla

Qld

$295,000

$385,000

+30.5%

HIT

7.

Paddington

Qld

$399,000

$460,000

+15.2%

HIT

8.

Dulwich Hill

NSW

$478,000

$492,000

+2.9%

MISS

9.

Baulkham Hills

NSW

$443,000

$510,000

+15.1%

HIT

10.

Bathurst

NSW

$216,000

$220,000

+1.8%

MISS

11.

Port Macquarie

NSW

$295,000

$265,000

-10.1%

MISS

12.

Geraldton

WA

$290,000

n/a

??

??

13.

Broadmeadows

Vic

$337,000

n/a

??

??

14.

Thornbury

Vic

$383,000

$370,0000

-3.3%

MISS

15.

Warrnambool

Vic

$232,000

$230,000

-0.9%

MISS

16.

St Kilda

Vic

$480,000

$447,000

-6.8%

MISS

17.

Brunswick

Vic

$415,000

$435,000

+4.8%

MISS

18.

Balaclava

Vic

$455,000

$450,000

-1%

MISS

19.

Port Noarlunga

SA

$220,000

n/a

??

??

20.

Kensington

SA

$411,000

n/a

??

??

Source: Australian Property Investor magazine, Your investment property magazine, Australian Property Monitors

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

Comments

Be the first one to comment on this article
What would you like to say about this project?