Burgeoning commuter suburbs in Australia’s capital cities have topped a list of growth areas where buyers can enter the market for under $550,000.
Tarneit, in Melbourne’s west, took out top spot on the national list of growth suburbs, recording annual growth of 18.3%. Rockingham, south of Perth, took out second place, followed by Craigieburn in Melbourne’s north.
Tracey Dean, Director of Sweeney Estate Agents in Tarneit, says the suburb is popular with families, first home buyers and investors.
“Tarneit is only about 20km from the CBD. The amenities are coming thick and fast – not only do we have Werribee Plaza, which is the largest shopping centre in the west, but we have a new train station opening this month. There’s also 13 highly-regarded schools in the area,” she says.
Now is the time to jump in.
“(The growth) is a fantastic achievement for the area, particularly for people who have already invested in the market.
“There is so much more coming into the market. Now is the time to jump in.”
New South Wales’ suburbs rounded out the top 10, with a strong showing from Sydney’s western suburbs including Campelltown, Lalor Park, Penrith and Blacktown. Suburbs in Newcastle and the Central Coast also featured.
Entry level: Best growth suburbs under $350,000
Tarneit, in Melbourne’s west, recorded annual growth of 18.3%
Understanding the data
Eight out of the top 10 suburbs in the national list recorded annual growth of more than 10%. The results are based on two-bedroom houses with a maximum median sold price of $550,000 – where suburbs have had at least 10 sold properties in the last year.
Annual growth is calculated as the compound annual growth rate in median price, comparing the median price of property sales in the preceding 12 months to the median price of properties sold in the same 12-month period five years ago – again limited to suburbs which have had at least 10 sold properties in both periods for two-bedroom houses.
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National top 10 growth suburbs under $550,000
Listed as suburb, state, annual growth, median sold price
Tarneit – VIC – 18.3% – $294,000
Rockingham – WA – 13.1% – $500,000
Craigieburn – VIC – 12% – $300,000
Campbelltown – NSW – 11.7% – $477, 500
Lalor Park – NSW – 11.6% – $501,500
Islington – NSW – 11% – $452,500
Penrith – NSW – 10.9% – $470,000
Blacktown – NSW – 10.5% – $507,500
Carrington – NSW – 9.4% – $443,750
Bateau Bay – NSW – 9% – $480,000
Blacktown, in western Sydney, recorded annual growth of 10.5%
Commuter suburbs lead the way
Proximity to the city, good transport options and family-friendly neighbourhoods were all common themes among the suburbs that took out the top three spots nationally.
Richard Smith, Senior Sales Consultant at Greg Hocking Tarneit, says the suburb was well-planned to include lots of open space and connected services.
“You’ve got extended bus services, plenty of parks. It’s all made up of estates, they’ve all got schools and shopping centres, access to public transport,” he says.
He says many of the homes on the market are practically brand new – most being as little as three years old. He says that’s an attractive proposition for investors, with maintenance and upkeep likely to be lower.
You have got the best of both worlds – rental return and growth.
“Rental yield is pretty high – around 5%, which is more than you get from the bank at the moment,” Smith says. “ You have got the best of both worlds – rental return and growth.”
Commute time: Australia’s most affordable suburbs within 20km of the CBD
In Rockingham, where annual growth was recorded at 13.1%, Roger Moorhouse, Director of Acton Rockingham says buyers are seeking affordability and a beach lifestyle
He says Rockingham’s proximity to Perth – about a 45 minute drive – makes it a popular choice for buyers, with the suburb is home to a diverse range of people.
“We’ve got on of the country’s largest naval bases nearby at Garden Island, so there’s a dominant population of naval personnel,” he says.
“We have a lot of fly-in fly-out workers and we’re also close to industrial areas of Fremantle and Cockburn so we also have a lot of blue-collar workers.”
Moorhouse says infrastructure, including freeways and public transport, and further planned land releases also make the area attractive to buyers.
“There’s infill planned within the beach and city centre locations … population growth over the next 10 years is predicted to be massive.”
Population growth over the next 10 years is predicted to be massive.
Rockingham, south of Perth, recorded annual growth of 13.1%
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In Craigieburn, which came in third place with annual growth of 12% for two-bedroom houses, Ray White Craigieburn Director Andrew Bellino says affordability and infrastructure are key to the suburb’s popularity.
“It’s only about 30km from the CBD, so it’s not a big distance to travel.”
If you’re looking at buying put your best foot forward.
He says a number of investors – particularly those from Sydney – are now looking to buy in Craigieburn – where he says the price is about half of what you would likely pay for a home a similar distance from the CBD in Sydney.
“There’s no sign of (the market) slowing down in the near future,” Bellino says.
“If you’re looking at buying put your best foot forward, put in a good offer rather than beating around the bush.
“We’re seeing three to five bidders at every auction. Buyers sitting back and waiting for the market to slow might be waiting a long time.”
Close to the CBD: Top 5 affordable inner-city suburbs
Top 5 growth suburbs by state
Rankings are based on a maximum median sales price of $550,000 and are for two-bedroom houses. Listed by suburb, annual growth, median sold price.
NSW
Campbelltown – 11.7% – $477, 500
Lalor Park – 11.6% – $501,500
Islington – 11% – $452,500
Penrith – 10.9% – $470,000
Blacktown – 10.5% – $507,500
VIC
Tarneit – 18.3% – $294,000
Craigieburn – 12% – $300,000
Eaglehawk – 7.7% – $235,000
Castlemaine – 7.5% – $335,000
Chelsea – 7.3% – $520,500
QLD
Palm Beach – 5.7% – $533,750
South Toowoomba – 5.1% – $289,000
East Toowoomba – 5% – $348,500
Labrador – 5% – $397,500
Roma – 4.8% – $252,500
SA
Somerton Park – 4.3% – $545,000
Adelaide – 3.2% – $516,000
Mawson Lakes – 2.9% – $337,500
West Croydon – 2.8% – $419,500
Prospect – 2.6% – $476,000
WA
Rockingham – 13.1% – $500,000
Westminster – 8.8% – $464,500
Coolbellup – 6.5% – $521,250
Belmont – 6.4% – $515,000
Midland – 6.2% – $460,000
TAS
West Hobart – 2.4% – $427,500
West Launceston – 1.8% – $245,000
South Hobart – 1.1% – $360,000
Mowbray – 0.5% – $195,000
South Launceston – 0.5% – $236,000
No data was returned for NT and ACT within the search parameters.
*Data source: realestate.com.au/invest. Correct at time of publication.
Main photo: Kate Hunter