Suburbs that have seen HUGE growth in the last 10 years
You know when people say “I told you so”? It may be annoying, but sometimes, those people were actually on the money.
Remember the industry ‘know-it-alls’ who recommended buying in particular suburbs ten years ago, because they were “set to boom”? Yeah, right. We’ve all heard that line thrown around in real estate! Only, these guys actually knew their stuff.
Many of the suburbs predicted to boom in 2012 have since enjoyed immense capital growth and the greatest median house price spikes in recent years. Let’s take a look.
Suburbs with the biggest capital growth
Six-figure buyers in Oakville, NSW have become multi-millionaires over the last ten years, with the town identified as Australia’s number one suburb of capital growth.
Back in 2012, a median house in this North-West Sydney suburb would cost buyers around $930,000 but in 2023, the same home is worth a whopping $5.6 million! That is massive – a gain of 502.2% in fact.
42km west of the Sydney CBD is Luddenham, which rates as number two for long-term growth nationally. With median house prices soaring 500% since 2012, it’s incredible to think that a $550,000 home purchased back then is now valued at $3.3 million!
Third on the list is Rhodes – only 12km from the heart of Sydney. Homeowners who purchased in 2012 at approximately $860,000 for a median-priced house can now expect to list their property for $5.11 million – an increase of 494.2%.
Contributors to capital growth
Notably, while medians in every capital city have at the very least doubled since 2012, it is Sydney that has soared highest above all others.
Low cost finance and strong population growth to support housing demand have contributed to this, while it should also be noted that Sydney is considered a difficult city to build in due to geographical barriers; this means new developments are harder to get approved. With all of this in mind, Sydney’s median house price was just $401,000 back in 2012 and now, we’re looking at a number that has tripled over a ten year period to $1.35 million! That’s a huge deal for homeowners in Sydney!
While the housing median price overall has increased, there are some suburbs that have clocked rocketing growth due to the evolution of the types of properties for sale; what this means is a focus on mostly new homes, rather than overwhelmingly older homes.
With newer homes often comes better infrastructure such as schools and public transport, as well as revitalised shopping precincts that turn a tired suburb into a desirable and dynamic vicinity.
Predictions for upcoming capital growth hotspots
Think back a decade ago when Hobart was the most affordable capital city to buy a property in throughout Australia, whereas now it is the most expensive. Who even saw that coming?!
You would think that with all the flooding and bushfires we have endured in recent years, homeowners would be put off buying in areas that are typically are affected by such natural disasters. However, it seems that old Aussie resilience (perhaps even stubbornness) lingers and the lure of the sea and tree change remains a strong lifestyle goal, so it is hard to forecast where the next deep price growth will occur.
And keep in mind we have had our lives thrown into imbalance with a pandemic and regulations that changed the way people lived, travelled and worked, so places like Canberra that were certainly not on the capital growth radar ten years ago are now seeing increased values across the board.
The current market really is quite unpredictable, and because of these external factors affecting people’s livelihoods, it is harder to make predictions like we did ten years ago.
But if you’re ready to talk to a chat to a property buyers agent that knows the ins and outs of the Sydney market, understands your needs and is ready to be your auction sniper when your dream home becomes available, give us a call on (02) 8916 6172 or email our team at firstname.lastname@example.org. We’ll be happy to help!