Which capitals did not double in value over the last 10 years?

While it’s the common property investor myth that dwelling prices double every seven to 10 years and that properties always increase in value, this is certainly not the case.

In fact, while some 10 year periods have seen a doubling effect for some areas – and specific outperforming areas have been successful in regularly achieving this – many capital cities have fallen far below the mark.

Using the rule of 72, that essentially states you need to see 7.2% growth per annum for a doubling of price to occur in 10 years’ time, or that you need to see 10% growth to see a doubling in seven years’ time, it’s pretty clear which areas have yet to achieve.

Here are the latest RP Data statistics showing the annual change in dwelling values over the past 10 years:

• Darwin - 8.5%
• Perth - 7.1%
• Melbourne - 6.2%
• Adelaide - 4.0%
• Canberra - 3.7%
• Sydney - 3.7%
• Brisbane - 3.4%
• Hobart - 2.0%

Source: RP Data Core Logic Home Value Index, September

Over the past 12 months, Sydney has increased 16.2%, while Melbourne has jumped up 11.7%. Clearly this is a huge jump start for anyone wanting to see big gains over time.

What this does go some way to suggesting, however, is that it’s as much about timing your own 10 year holding period as it is relying on any 10 years to give you an uptick.