Key takeaways
Amidst uncertainties like rising interest rates and living costs, Australian suburbs, especially in regional areas, have seen a remarkable doubling of median house and unit prices over the past five years.
This real estate surge isn't confined to major urban centers. Various suburbs across different states have experienced substantial growth, showcasing a broad trend across the country.
While these suburbs show impressive growth, not all properties within them are automatically strong investment prospects. Understanding investment-grade properties and aligning them with personal investment goals is crucial.
Forget the allure of Powerball's staggering $200 million jackpot – a group of Australian property owners have already struck gold.
Recent data from PropTrack reveals a fascinating trend: 67 suburbs where median house and unit prices have not just increased but doubled in the past five years.
Where median house and unit prices doubled in 5 years
2023 witnessed an unexpected surge in home prices, defying the odds of rising interest rates and the nationwide squeeze on living costs.
This real estate bonanza isn't limited to the usual urban hotspots.
In fact, out of these 67 suburbs, a mere 10 from Sydney, Adelaide, and Hobart made the cut.
| Suburb | State | Median | Property type | 5-year growth | |
|---|---|---|---|---|---|
| 1 | Teralba | NSW | $902,500 | House | 173.50% |
| 2 | Gables | NSW | $1,590,000 | House | 165.40% |
| 3 | Queenstown | TAS | $190,000 | House | 160.30% |
| 4 | Caddens | NSW | $1,278,000 | House | 156.50% |
| 5 | Melonba | NSW | $1,145,000 | House | 153.20% |
| 6 | Casterton | VIC | $370,000 | House | 150.80% |
| 7 | Glenwood | QLD | $485,000 | House | 148.70% |
| 8 | Rosebery | TAS | $185,000 | House | 146.70% |
| 9 | Nulsen | WA | $225,000 | House | 146.60% |
| 10 | Westbury | TAS | $710,000 | House | 136.70% |
| 11 | Crystal Brook | SA | $260,000 | House | 136.40% |
| 12 | Nikenbah | QLD | $857,500 | House | 135.70% |
| 13 | Kembla Grange | NSW | $896,250 | House | 134.00% |
| 14 | Mount Morgan | QLD | $197,500 | House | 132.40% |
| 15 | Dysart | QLD | $185,000 | House | 131.30% |
| 16 | South Hedland | WA | $320,000 | Unit | 122.20% |
| 17 | Heywood | VIC | $380,000 | House | 121.60% |
| 18 | Whyalla Stuart | SA | $195,500 | House | 121.50% |
| 19 | Dungog | NSW | $630,000 | House | 121.10% |
| 20 | Sunshine Beach | QLD | $1,560,000 | Unit | 119.70% |
| 21 | Millicent | SA | $340,000 | House | 119.40% |
| 22 | George Town | TAS | $355,000 | House | 117.80% |
| 23 | Cliftleigh | NSW | $725,000 | House | 117.10% |
| 24 | Myrtleford | VIC | $637,000 | House | 115.90% |
| 25 | Blackwater | QLD | $205,000 | House | 115.80% |
| 26 | Spalding | WA | $272,500 | House | 115.80% |
| 27 | South Hedland | WA | $420,000 | House | 115.40% |
| 28 | Warracknabeal | VIC | $232,500 | House | 114.30% |
| 29 | Elizabeth Downs | SA | $390,000 | House | 114.30% |
| 30 | Barney Point | QLD | $272,500 | House | 113.70% |
| 31 | Bokarina | QLD | $1,495,000 | House | 113.00% |
| 32 | Solomontown | SA | $183,500 | House | 112.80% |
| 33 | Rokeby | TAS | $585,000 | House | 112.70% |
| 34 | Elizabeth North | SA | $350,500 | House | 112.40% |
| 35 | Bridport | TAS | $700,000 | House | 112.10% |
| 36 | South Gladstone | QLD | $180,000 | Unit | 111.80% |
| 37 | Rangeway | WA | $190,000 | House | 111.10% |
| 38 | Barraba | NSW | $263,500 | House | 110.80% |
| 39 | Terang | VIC | $387,500 | House | 110.00% |
| 40 | Muirhead | NT | $713,000 | House | 109.70% |
| 41 | Cannon Valley | QLD | $1,100,000 | House | 109.50% |
| 42 | Orbost | VIC | $345,000 | House | 109.10% |
| 43 | Bordertown | SA | $275,000 | House | 109.10% |
| 44 | Broulee | NSW | $1,150,000 | House | 108.90% |
| 45 | Moura | QLD | $212,000 | House | 108.90% |
| 46 | Smithton | TAS | $370,000 | House | 108.50% |
| 47 | Jindabyne | NSW | $1,350,000 | House | 108.30% |
| 48 | Tocumwal | NSW | $580,000 | House | 107.10% |
| 49 | Springdale Heights | NSW | $520,000 | House | 106.80% |
| 50 | Cape Paterson | VIC | $880,000 | House | 106.80% |
| 51 | Collinsville | QLD | $160,000 | House | 106.50% |
| 52 | Boolaroo | NSW | $772,500 | House | 106.00% |
| 53 | Tara | QLD | $185,000 | House | 105.60% |
| 54 | Peterborough | SA | $148,000 | House | 105.60% |
| 55 | Kingscliff | NSW | $1,800,000 | House | 104.80% |
| 56 | Tewantin | QLD | $807,500 | Unit | 104.40% |
| 57 | Davoren Park | SA | $365,000 | House | 102.80% |
| 58 | Sellicks Beach | SA | $683,000 | House | 102.40% |
| 59 | East Devonport | TAS | $435,000 | House | 102.30% |
| 60 | Worongary | QLD | $1,180,000 | House | 101.70% |
| 61 | Goolwa South | SA | $635,000 | House | 101.60% |
| 62 | North Kellyville | NSW | $1,730,750 | House | 101.30% |
| 63 | Hope Island | QLD | $1,700,000 | House | 101.20% |
| 64 | Cloncurry | QLD | $220,000 | House | 100.00% |
| 65 | Port Hedland | WA | $680,000 | House | 100.00% |
| 66 | Anglesea | VIC | $1,700,000 | House | 100.00% |
| 67 | Nelly Bay | QLD | $400,000 | Unit | 100.00% |
Source: PropTrack
Paul Ryan, PropTrack's senior economist, sheds light on this phenomenon.
The pandemic has reshaped our residential choices, driving a mass migration from bustling capitals to regional gems.
"People are venturing beyond the usual suspects, and it's paying off – especially in regional Australia," he observes.
Take Teralba in NSW's greater Newcastle, for instance.
This suburb has witnessed a meteoric rise in median house prices – a whopping 173% jump to $902,500 from $333,000 just five years ago.
Teralba's unique appeal is affordability coupled with serene lakeside living.
This combination attracts families and downsizers alike, seeking tranquillity without breaking the bank.
The success stories don't end there.
In Sydney's Gables and Tasmania's Queenstown, house prices have soared by 165% and 160%, respectively.
NSW's Caddens and Melonba are not far behind, with jumps of 156% and 153%.
Other notable mentions include Casterton in Victoria, Glenwood in Queensland, and Rosebery in Tasmania, all witnessing price hikes in the 146%-150% range.
The unit market also has its winners, with South Hedland in WA leading with a 122% increase.
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Fastest growing cities in Australia 2024
- Also read:Melbourne property market forecast for 2024
- Also read:Brisbane’s property market forecast for 2024
- Also read:Sydney property market forecast for 2024
Queensland's Sunshine Beach, South Gladstone, and Tewantin follow closely.
Overall, national home prices rose 5.52% in 2023, with signs of a slowdown towards the year's end.
"Affordability is starting to bite," says Ryan. "Despite the upward trend in interest rates, the relentless rise in home prices is meeting resistance."
Investment-grade properties are key
These suburbs have all been identified as being big movers, but that doesn’t necessarily mean properties in these locations are automatically a strong investment prospect.
There are more than 11 million dwellings in Australia, and they’re not all created equal.
In fact, in my mind, fewer than 4% of the properties on the market at any given time are what I would call “investment grade”.
We’ve written plenty of articles and voiced many podcasts over time to share what I consider an investment-grade property is (more here and here if you’d like to explore), so I won’t go into the characteristics of a great investment, or the type of properties that fit these criteria.
As you consider your investment journey and the types of assets you’d like to add to your portfolio, I encourage you to consider:
- What are your long-term investment goals?
- Why do you want to invest in property as opposed to other investments?
- How long do you plan to own your investment portfolio?
- What kind of budget are you working with?
These are all the kinds of questions we encourage our clients at Metropole to consider when we work together to build their investment portfolio.
Whether you plan to own one investment property or 5 (or more!), the ideal investment strategy for you will be personal, as it’s based on your own unique risk profile, income, expenses and goals.
When you take all of these things into consideration, you can work out your long-term “goal”, and break it down into smaller, more achievable goals that you aim to tick off one year to the next.
Having unclear goals can cost you a small fortune, so getting super clear on what it is you want to achieve is the first step towards building real and lasting wealth in your life.
Attaining wealth doesn’t just happen, it’s the result of a well-executed Strategic Property Plan.
Planning is bringing the future into the present so you can do something about it now!
Why not get the team at Metropole on your side to help you – we’re more than just another buyers’ agent - we help our clients safely grow intergenerational wealth through strategic property advice.
We are big enough to tip the scales in your favour, but still small enough to care.
Click here to organise a free complimentary wealth discovery chat with one of our wealth strategists.
