Westmead takes top spot for strongest house price growth in FY16: McGrath
The East Coast capital city suburbs with the highest price growth prove that lifestyle options, strong or improving infrastructure, good schools, local jobs or proximity to employment hubs, public transport and a vibrant ‘village’ atmosphere are key factors in driving prices skyward, according to McGrath's latest report.
Figures compiled by CoreLogic RP Data reveal the suburbs with the greatest house and apartment price growth over the 12 months to June 30, 2016.
A key element in the price growth of many suburbs this year has been a lack of stock, which has intensified competition.
In Sydney, Westmead recorded the strongest house price growth for FY2016 at 33.2 percent.
"We attribute this to the $900 million Westmead Hospital redevelopment project currently underway and a growing resident population of well-paid health service professionals," the report stated.
Westmead is also home to an expanding campus of the University of Western Sydney and is situated right next door to Parramatta, Sydney’s second CBD.
Fairlight recorded the strongest apartment price growth at a staggering 46%.
A shortage of stock combined with a large difference between house and apartment prices and the ripple effect from its beachside neighbour, Manly all contributed to this phenomenal price rise.
In Melbourne, St Kilda East house prices rose 35.4 percent due to improved amenities, gentrification and increased demand from buyers priced out of Albert Park, Middle Park and Elwood.
Carlisle Street in Balaclava, a small suburb in the St Kilda East postcode, has been transformed over the past decade into a buzzy café village where locals love to hang out.
There are shops, major supermarkets, schools, the recently upgraded train station and easy access to the city and St Kilda foreshore.
There are beautiful period houses and apartments protected by heritage order. It’s a great place to live and gaining appeal as a destination suburb.
Brighton had the second highest apartment price growth at 27.3%, reflecting demand from downsizers who have lived and loved the location for 30 years and are now selling their family homes and moving into apartments and townhouses in the same area.
In Brisbane, house price growth was greatest in Robertson at 25.6%; while beachside Woody Point on the Redcliffe peninsula achieved the best apartment price growth at 24.2%.
WILSTON recorded the third best house price growth at 20.3% over FY2016. WILSTON is a highly regarded area with a great café village, excellent schools and spectacular homes – many with city views due to the suburb’s elevated position.
Camp Hill enjoyed the second best apartment price growth at 18.9% due to strong demand from first home buyers.
In the nation’s capital, it’s all about O’Connor, which had the highest price growth for both houses at 21.5 percent and apartments at 15.3 percent in FY2016.
O’Connor is close to everything and has a great café and shopping precinct. Families love the tree-lined streets and good sized blocks and it is in the catchment areas for Turner School and Lyneham Primary School. Being walking distance to the CBD and the Australian National University is also a major drawcard for young buyers and investors.
Identifying Price Growth Hot Spots
Macro Factors
• Strong population growth
• Good local employment or access to job hubs
• Gentrification of housing stock
• Growing household incomes
• Lifestyle amenities – cafes, shops, entertainment and recreation
• Schools and catchment zones
• Presence of big retail brands
• Public transport and walkability
Market Factors
• Rising tenant and buyer demand
• Low or falling days on market
• Low or falling vacancy rates
• More auctions and rising clearance rates
• Reduced vendor discounting
• Limited supply of future housing
