When it comes to buying an investment property, you want to make sure you’re putting your money into an investment-grade property in a growth suburb.
Tips: Due diligence is key here, so research into the location, demand, property type and long-term price trends is vital to make the best investment decision.
This is why looking at the average house price growth over at least 10 years is so important - it helps to give a great indicator of what to expect from your investment property in the next 10 years or longer.
On the other hand, looking at the performance of a location or a particular property over a shorter period can be deceptive.
Many investors are keen to know how long it will take for the value of their property to double.
It’s a question you should know the answer to - after all, capital growth is one of the main reasons people invest in real estate.
It has been often said that the average yearly increase for top-tier properties in major cities is generally around 7%, meaning that these properties would double in value within a span of 10 years.
Here, to give a clearer picture, we’ve drilled down into house prices over the last 10 years in each Australian state.
Sydney house price growth over the last 10 years
According to data on Sydney’s house price growth over the last 10 years, values in Australia’s harbour city have doubled.
SQM Research data show that the weekly asking property price for the average house in January 2013 was $866,162 or $777,312 for the average 3-bedroom house.
As of the week ending 18 Jule 2023, those figures have skyrocketed to an average of $1,797,872 for all houses or $1,595,583 for a 3-bedroom house.
As you can see in the chart below, Sydney’s house price growth has steadily increased over the entire 13-year period listed in SQM’s research, with the exception of a dip in values around 2019.
The majority of Sydney’s property price growth occurred during the 2021-2022 pandemic-induced property boom, with levels stabilising over the past 12 months.
Sydney's Asking Property Prices Graph
| Property type | Median price | 12-month change | 3-year (pa) change | 7-year (pa) change | 10-year (pa) change |
|---|---|---|---|---|---|
| All Houses | $1,797.87 | 6.80% | 9.10% | 6.00% | 7.20% |
| 3-br Houses | $1,595.58 | 6.90% | 9.00% | 5.30% | 7.00% |
| All Units | $775.442 | 7.80% | 4.10% | 2.30% | 4.10% |
| 2-br Units | $830.26 | 9.80% | 4.90% | 2.50% | 4.60% |
| Combined | $1,389.33 | 6.60% | 7.50% | 5.00% | 6.30% |
Source: SQM Research
Melbourne house price growth over the last 10 years
According to data on Melbourne’s house price growth over the last 10 years, values in Australia’s southern city have also almost doubled.
SQM Research data show that the weekly asking property price for the average Melbourne house in January 2013 was $628,610 or $630,697 for the average 3-bedroom house.
As of the week ending 18 July 2023, those figures have jumped to an average of $1,185,352 for all houses or $1,077,135 for the average 3-bedroom house.
Unlike Sydney, the data shows that Melbourne has enjoyed a more stable rise in property values, even through the Covid-19 property boom with prices stabilising but remaining at high levels over the past 12 months.
Melbourne's Asking Property Prices Graph
| Property type | Median price | 12-month change | 3-year (pa) change | 7-year (pa) change | 10-year (pa) change |
|---|---|---|---|---|---|
| All Houses | $1,185.352 | 1.70% | 5.00% | 6.50% | 6.60% |
| 3 br Houses | $1,077.135 | 1.00% | 3.30% | 4.80% | 5.80% |
| All Units | $590.843 | 1.00% | 1.20% | 3.90% | 3.60% |
| 2 br Units | $587.739 | 0.50% | 2.00% | 3.00% | 3.10% |
| Combined | $1,001.589 | 1.30% | 4.00% | 5.80% | 5.90% |
Source: SQM Research
Brisbane house price growth over the last 10 years
According to data on Brisbane’s house price growth over the last 10 years, values in Queensland’s largest city have also doubled.
SQM Research data show that the weekly asking property price for the average Brisbane house in January 2013 was $517,051 or $450,392 for the average 3-bedroom house.
As of the week ending 18 July 2023, those figures have surged to an average of $979,509 for all houses or $822,982 for the average 3-bedroom house.
That means that as of 2023, the average house price in Brisbane has risen by $432,006 over 10 years.
Or in other words, Brisbane’s property values over 10 years have risen 45.09%.
As you can see in the chart below, the majority of Brisbane’s house price growth occurred during the 2021 pandemic property market boom.
- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2024
- Also read:Home Price Growth Still Strong Over November | Latest Housing Market Stats
- Also read:Boom to bust: What makes property prices rise and fall
However, price growth has begun to slow over the past 12 months.
Brisbane's Asking Property Prices Graph
| Property type | Median price | 12-month change | 3-year (pa) change | 7-year (pa) change | 10-year (pa) change |
|---|---|---|---|---|---|
| All Houses | $979.509 | 6.40% | 14.90% | 7.50% | 6.60% |
| 3-br Houses | $822.982 | 1.70% | 13.40% | 6.70% | 6.20% |
| All Units | $529.051 | 16.70% | 11.70% | 5.00% | 4.30% |
| 2-br Units | $525.292 | 19.10% | 12.70% | 5.30% | 4.50% |
| Combined | $868.253 | 7.7% | 14.20% | 7.10% | 6.20% |
Source: SQM Research
Adelaide house price growth over the last 10 years
According to data on Adelaide’s house price growth over the last 10 years, values in the South Australian capital have grown strongly.
SQM Research data show that the weekly asking property price for the average Adelaide house in January 2013 was $464,379 or $435,460 for the average 3-bedroom house.
As of the week ending 18 July 2023, those figures have risen to an average of $776,252 for all houses or $717,468 for the average 3-bedroom house.
That means that as of 2023, the average house price in Adelaide has risen by $308,346 over 10 years.
Or in other words, Adelaide’s property values over 10 years have risen 40.49%.
As you can see by the chart below, the majority of that increase happened during the pandemic boom when an otherwise very stable property market skyrocketed in line with a nationwide property surge.
Unlike values in Sydney, Melbourne or Brisbane, Adelaide’s property prices have continued to rise sharply into 2023.
Adelaide's Asking Property Prices Graph
| Property type | Median price | 12-month change | 3-year (pa) change | 7-year (pa) change | 10-year (pa) change |
|---|---|---|---|---|---|
| All Houses | $776.252 | 8.10% | 14.00% | 6.70% | 5.30% |
| 3-br Houses | $717.468 | 6.70% | 13.40% | 6.40% | 5.10% |
| All Units | $419.566 | 18.60% | 10.70% | 5.20% | 3.80% |
| 2-br Units | $414.601 | 14.40% | 12.50% | 5.60% | 4.20% |
| Combined | $712.381 | 9.00% | 13.50% | 6.50% | 5.10% |
Source: SQM Research
Perth house price growth over the last 10 years
According to data on Perth’s house price growth over the last 10 years, values in Western Australia's most major have also enjoyed some, albeit smaller, growth.
SQM Research data show that the weekly asking property price for the average Perth house in January 2013 was $703,425 or $613,704 for the average 3-bedroom house.
As of the week ending 18 July 2023, those figures have increased slightly to an average of $830,884 for all houses or $734,017 for the average 3-bedroom house.
Perth’s house price growth over the past decade is much more modest versus the other Australian states but the city’s property values have still risen a respectable 13.23% over the 10-year period.
Perth’s Asking Property Prices Graph
| Property type | Median price | 12-month change | 3-year (pa) change | 7-year (pa) change | 10-year (pa) change |
|---|---|---|---|---|---|
| All Houses | $830.884 | 9.10% | 7.30% | 2.60% | 1.20% |
| 3 br Houses | $734.017 | 8.20% | 8.50% | 2.50% | 1.40% |
| All Units | $445.216 | 9.20% | 5.50% | 0.30% | -0.30% |
| 2 br Units | $451.036 | 12.90% | 7.20% | 1.00% | 0.60% |
| Combined | $731.331 | 9.00% | 6.90% | 2.20% | 1.00% |
Source: SQM Research
Which Australian city has the best result?
The data differs for each of Australia’s 5 most major cities, but there is a clear trend throughout growth.
The data shows that in Sydney, Melbourne, Brisbane and Adelaide, house prices have increased by an impressive 40-50%.
Perth has enjoyed a lower but equally stable 13.23%.
House prices over the last 10 years in each major Australian city
| City | Avg. house price, Jan 2023 | Annual change | 10-year growth |
|---|---|---|---|
| Sydney | $1.73mil | 7.1% | 49.81% |
| Melbourne | $1.18mil | 6.5% | 46.72% |
| Brisbane | $942k | 6.2% | 45.09% |
| Adelaide | $780k | 5.3% | 40.49% |
| Perth | $811k | 1.5% | 13.23% |
However, history shows that some properties outperform others in terms of capital growth by as much as 50-100%.
So there is no reason why strategic property investors who buy an investment-grade property in 2023 cannot see their property’s value double within the next 7 to 10 years.
Note: The problem is...in my mind only around 4% of the properties on the market currently are what I would call "investment-grade".
It’s also worthwhile noting that you can’t just look at a city or state-wide level.
Because not only does each city have its own property cycle - there are cycles within each cycle.
READ MORE: Do property values really double every 7 to 10 years?
