Perfect hindsight
So where was the best place to invest in bricks and mortar in the past five years? Those who went west would have prospered the most, as Chris Jackson discovers
The mining boom has paved the road to wealth for many astute investors in the past five years.
According to data from Australian Property Monitors there were at least 10 suburbs in Perth which recorded rises of more than 145% in the median house price (comparing figures from March quarter 2009 with the same period in 2005).
The suburbs included Aveley, Bertram, Hammond Park, Ashby, Sinagra, Tapping, Aubin Grove and Darch, where house prices more than tripled.
Real Estate Institute Western Australia president Rob Druitt said the period showed “exceptional growth”.
“The market peaked in 2006 with a median price of $474,000,” he said.
“The market started correcting in 2007 and the global financial crisis added to this downturn last year. Perth house prices went backwards by 12% in 2008, however the March quarter results for 2009 show modest growth has returned. The current median price is $430,000 and rents have plateaued at $360 per week. The market is robust and seems to be stabilizing.”
According to Real Estate Institute of Victoria president Adrian Jones, the top five suburbs in Melbourne in the past five years have been the perennially strong suburbs such as Middle Park, Balwyn, Hawthorn and Malvern East.
There was also strong growth in Maribyrnong, showcasing “the long-term undervaluing of the west”, Jones added.
“It shows that substantial capital growth is available over the medium term if you choose the right suburb, particularly when looking within 10km of the CBD,” he said.
In the north, Real Estate Institute Queensland managing director Dan Molloy said the top two performers over the past five years represent both ends of the city’s residential market.
“At number one, we have Hamilton – one of the most prestigious suburbs in Queensland – which benefited from the increased demand in top-end property over recent years,” he said.
“Coming in at number two is Inala, which is consistently one of the most affordable suburbs in Brisbane, and has benefited from first home buyer demand, as well as urban renewal projects undertaken by council.”
Other suburbs to do well in the past five years were in Brisbane’s most affordable areas that attracted both first-home buyers and investors, Molloy said.
