LOCATION continues to be the key to enticing home buyers, according to a nationwide report which found there are still opportunities around.
The St George Bank national property hotspots report identified the top 24 suburbs likely to provide the best value. They were selected for their proximity to the CBD, transport and retail outlets and potential for price growth.
“Many opportunities still exist to buy well located, affordable properties in capital cities and regional areas,” the report said.
Although it offered the best opportunity, the report found the most expensive suburb for home buyers was Ashburton, 12kms southeast of Melbourne CBD, with a median price of $706,750. Whilst the cheapest suburb was Redan, in the regional city of Ballarat, Victoria, with a median price of $190,000.
Elsewhere in Melbourne, Chadstone, Brunswick and Flemington had median prices of $553,000, $532,000 and $530,000 respectively.
In Sydney, Waterloo and Rockdale were the most expensive with prices of $560,000 and $525,000 respectively, whilst the cheapest was Granville for $347,000.
Brisbane’s most expensive location was Fairfield with $587,500 and cheapest was Margate with a tag of $347,000.
Adelaide’s best suburbs were Thebarton where the median is $391,250 and Glanville with $300,000.
In Perth, the suburbs were Bassendean ($445,000) and Thornlie ($365,000).
And North Hobart offered the best opportunity with prices at $335,000. Darwin’s Rapid Creek was the choice pick with $523,000 and Dickson, Canberra was nominated with price at around $505,000.
The report also found that in 2008/09 the median dwelling value across all capital cities rose by 4.5%. Darwin recorded the strongest increase, up 7% in the year to June, while Adelaide recorded the smallest at 0.6%.
Dwelling value in Melbourne rose 6.5%, while rival city Sydney grew 5.9%. Canberra was up 3.1% in the year, while Perth and Brisbane grew 1.9 and 1.4% respectively.
St George Bank chief economist Besa Deda said since December 2008, Australian median dwelling values have rebounded and, as at the end of June, they sit at their highest ever (median) level of $471,818.
Deda said Australia faces an undersupply of housing estimated at between 20,000 and 80,000 residences a year which she added is leading to an imbalance between demand and supply of housing had placed a floor under dwelling values.
“With fewer dwellings being built, the supply shortage continues to be exacerbated and is anticipated to increase over the next few years as the population grows further and the required amount of dwelling commencements needed to fill this shortage goes unfulfilled,” she concluded.
Australian Property Journal
