Key takeaways
Domain data reveals the suburbs within 15km of each city leading the recovery, with median prices skyrocketing as much as 52.9% over the past year.
Top-performing suburbs within 15km of Melbourne's CBD include Caulfield South Inner South Unit $785,000 23.2% 9km, Armadale Inner Urban House $2,720,500 10.5% 5.5km, Kew Inner East House $2,780,000 9.9% 5.9km, North Melbourne Inner Urban Unit $540,000 6.6% 3.7km.
The top-performing suburbs within 15km of Sydney's CBD are Milsons Point and Bellevue Hill, with Milsons Point's unit price rising by 25% and Bellevue Hill's house price rising by 18.4% respectively.
Top-performing suburbs within 15km of Brisbane's CBD range from $420,000 in Richlands to $557,750 in Alderley, with the exception of Rochedale where prices have risen 17.2% to $1.58 million over the same period.
To find an investment-grade suburb in a top-performing suburbs list, look for a suburb that is close to employment hubs, gentrifying suburbs, high wages growth of people living in the suburb, local amenities, access to public transport, and strong school catchment prospects.
A lot has happened in Australia’s property market over the past 12 months.
After the once-in-a-generation boom in 2020- 21, affordability issues caused by rising interest rates and tightened lending criteria put pressure on prices during 2022.
But commencing February 2023 our housing markets moved to the next phase in the property cycle - the recovery phase.
And while prices had cooled from their previous peaks, it’s clear that buyers were still paying a premium to be close to each of our major city centres.
New data from Domain reveals the suburbs within 15km of each city leading the recovery, with median prices skyrocketing as much as 52.9% over the past year.
Interestingly, while some of the recovery-leading suburbs are affluent ones, not every growth suburb is a “blue chip.”
There are also pockets near city centres where the median house and unit prices can still be considered, even after strong growth.
Here’s a breakdown of the top-performing suburbs within 15km of the CBD in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth.
Top-performing suburbs within 15km of Sydney’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Milsons Point | $2,575,000 | 25.00% | 2.4km | Unit |
| Bellevue Hill | $9,000,000 | 18.40% | 4.4km | House |
| Matraville | $835,000 | 10.60% | 10.7km | Unit |
| Elizabeth Bay | $1,032,500 | 8.70% | 1.7km | Unit |
| Breakfast Point | $1,405,000 | 8.50% | 9.5km | Unit |
| Rockdale | $700,000 | 7.70% | 11.3km | Unit |
| Meadowbank | $730,000 | 7.40% | 12.5km | Unit |
Source: Domain House Price Report
In Sydney, some of the wealthiest suburbs across the city come out on top - Milsons Point and Bellevue Hill recorded the strongest annual increase in prices (at 25% and 18.4% respectively).
The jump in prices takes Milsons Point’s unit price to a $2.57 million median whereas the median price for a house in Bellevue Hill is now $9 million.
In fact, Bellevue Hill’s median house price has risen 61.8% over the past 5 years, most likely due to its convenient location and close proximity to the city, the beach and local amenities.
But not every suburb on Sydney’s top-performers list comes with a seven-figure price tag.
Units in Rockdale have increased 7.7% to a new $700,000 median while units in Meadowbank and Matraville are equally affordable.
Meadowbank’s median unit price has increased 7.4% to $730,000 and Matraville’s median unit price has jumped 10.6% to $835,000.
Top-performing suburbs within 15km of Melbourne’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Caulfield South | $785,000 | 23.20% | 9km | Unit |
| Armadale | $2,720,500 | 10.50% | 5.5km | House |
| Kew | $2,780,000 | 9.90% | 5.9km | House |
| Balwyn | $895,000 | 8.40% | 9.9km | Unit |
| North Melbourne | $540,000 | 6.60% | 3.7km | Unit |
| Albert Park | $2,435,000 | 5.60% | 2.4km | House |
| Alphington | $1,780,000 | 5.20% | 7.2km | House |
Source: Domain House Price Report
Price increases in Melbourne’s top-performing suburbs were a little lower than in Sydney, with the tight supply causing the strongest uptick in Caulfield South where the median unit price rose 23.2% to $785,000.
But unlike Sydney, plenty of suburbs made the list for an increase in median house prices.
The highest price in Melbourne’s list was Kew’s median house price ($2.78 million, up 9.9% over the year) followed by the median house price in Armadale ($2.72 million, up 10.5% over the same period.
Houses in Alphington rose 5.2% to $1.78 million over the 12-month period, but over the five-year period, the median unit price in Alphington increased by 48.9% to $1.78 million – representing the strongest five-year growth of all the suburbs close to the CBD in Melbourne.
Top-performing suburbs within 15km of Brisbane’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Alderley | $557,750 | 25.10% | 5.4km | Unit |
| Carseldine | $522,500 | 24.40% | 13.7km | Unit |
| Taigum (House) | $557,500 | 18.00% | 14.3km | House |
| Rochedale | $1,582,500 | 17.20% | 14.8km | House |
| Sherwood | $525,000 | 16.70% | 8km | Unit |
| Taigum (Unit) | $500,000 | 15.70% | 14.3km | Unit |
| Richlands | $420,000 | 15.10% | 15km | Unit |
Source: Domain House Price Report
Prices in Brisbane’s best-performing suburbs mostly hover around the $500,000 mark - house or unit prices within 15 kilometres of Brisbane’s CBD ranged between $420,000 in Richlands, up 15.1% over the year, to $557,750 in Alderley, up 25.1% over the same period.
But there is one exception… houses in Brisbane’s relatively new and developing suburb of Rochedale where prices have risen 17.2% to $1.58 million.
Top-performing suburbs within 15km of Adelaide’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Glenelg North | $535,000 | 52.90% | 8.8km | Unit |
| Kurralta Park | $750,000 | 27.30% | 4.0km | House |
| Kilburn | $636,500 | 26.80% | 7.8km | House |
| Glenelg East | $1,190,000 | 25.30% | 9.0km | House |
| Somerton Park | $1,422,500 | 23.40% | 10.5km | House |
| Norwood | $607,500 | 23.40% | 2.9km | Unit |
| Hectorville | $780,000 | 21.70% | 7.1km | House |
Source: Domain House Price Report
Interestingly, the strongest growth suburb within 15km of Adelaide’s CBD is also the most affordable on the list.
Glenelg North in Adelaide Metro South has seen an enormous 52.9% increase in its median unit price to $535,000 over the past 12 months, and 72.6% over the past 5 years - demand for units in this suburb is mostly driven by affordability and proximity to the CBD.
House price increases also feature strongly on the list.
Kurralta Park saw the strongest increase in its median house price - of 27.3% to $750,000 - while houses in Somerton Park are the most expensive on the list thanks to its 23.4% increase to a new $1.42 million median.
Top-performing suburbs within 15km of Canberra’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Denman Prospect | $605,000 | 28.70% | 9.6km | Unit |
| Barton | $752,500 | 25.60% | 2.9km | Unit |
| Franklin | $534,000 | 18.70% | 9.1km | Unit |
| Macquarie | $565,000 | 12.20% | 6.8km | Unit |
| Phillip | $549,500 | 12.10% | 8.1km | Unit |
| Narrabundah | $655,000 | 11.20% | 6.3km | Unit |
Source: Domain House Price Report
Unit sales dominated Canberra’s list of top-performing suburbs over the past year, with no making an appearance for their house price growth.
The strongest increase was seen in Denman Prospect in the capital’s Weston Creek, just 9.6km or 15-minute drive from the CBD, where unit prices jumped an impressive 28.7% to reveal a new $605,000 median.
Close behind are units in Barton in Canberra Central where prices have increased 25.6% over the same period to $752,500 - this is also the suburb on the list which has the closest proximity to the CBD at 2.9km.
Top-performing suburbs within 15km of Perth’s CBD
| Suburb | Median price | Annual change | Distance to CBD (km) | Property type |
|---|---|---|---|---|
| Winthrop | $1,220,000 | 23.20% | 11.2km | House |
| Swanbourne | $2,115,000 | 20.30% | 9.1km | House |
| Applecross | $1,425,000 | 17.30% | 6.9km | House |
| White Gum Valley | $960,000 | 16.40% | 14.4km | House |
| Perth | $345,000 | 16.00% | 0km | Unit |
| Carine | $1,122,000 | 14.90% | 13km | House |
| Leederville | $849,500 | 14.70% | 2.9km | House |
Source: Domain House Price Report
Over in Australia’s western capital, Perth houses have recorded strong price growth across the city, while increases in unit prices were restrained to Perth’s CBD itself.
At the top of the list is Winthrop in Perth’s southwest, where the median house price has jumped 23.2% over the past 12 months, followed closely by median house prices in Perth’s oceanfront suburb of Swanbourne.
At just 9.1km from the CBD, house prices in Swanbourne have increased 20.3% to a new $2.11 million median over the past year - in 5 years, this was up 49.3% - owing again to constrained supply of properties and accessibility to top-rated schools.
What is driving price growth in these top-performing suburbs?
Essentially, the bulk of strong property price growth across all these suburbs listed is down to tight supply and strong demand.
Constraints of good quality property in sought-after locations near CBDs, the water, and other amenities had driven prices sharply higher in these areas.
Another significant factor is the continuous growth of the population and the scarcity of land in these inner-city areas.
Due to limited available land for housing development in close proximity to CBDs, the prices of homes in surrounding suburbs have skyrocketed, making them unaffordable for a significant portion of the Australian population.
Consequently, a substantial number of individuals have chosen to relocate to regional areas and smaller capital cities, which has stimulated robust price growth in these regions.
These trends, which were already underway for some time, experienced a massive acceleration during the pandemic as remote work became more normalised.
How to find an investment-grade suburb in a top-performing suburbs list
- 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
It’s interesting, but you will be able to identify these suburbs as they make the same list every second or third year.
They always seem to be powering ahead for two reasons – supply and demand.
Supply means there is less availability of land and therefore properties are in short supply.
Demand comes from a number of factors, including demand for aspiration suburbs, being close to employment hubs, gentrifying suburbs, high wage growth of people living in the suburb, local amenities, access to public transport, and strong school catchment prospects.
Demand does not wane for these types of locations and they are not building any more of them.
I also check to see that the local economy is providing new jobs, is growing and there is local infrastructure spending as these are good indicators of the local area and its future.
Tips: As I always say, when it comes to property investment, you should think long-term and you should focus on investment-grade properties in A-grade locations.
Never follow a trend or buy in hotspots or growth areas because these won’t give you the long-term growth that you’re looking for.
I’m talking about areas and properties which hold their value over the long term, rather than benefit from an uptick in demand.
