The suburbs you should have bought in ten years ago to become a multi-millionaire
Australia’s number one suburb for monumental capital growth has made six-figure buyers into multi-millionaires over the past ten years.
Oakville, about an hour north-west of Sydney, has experienced the greatest median house price spike nationally since 2012, new data shows.
Ten years ago, a median house in Oakville cost $930,000, Ray White Group’s research reveals. Today, that same house is worth $5.6 million – a gain of 502.2 per cent.
Oakville is a suburb in the City of Hawkesbury, on the metro fringe, about an hour by car from Sydney.
43 Hanckel Road, Oakville, NSW
Sydney dominates the Australia-wide list, from data crunched by Ray White economist Nerida Conisbee. Generally, the rule of thumb in property is that prices double every ten years. However, at a granular level, the numbers show it can be more extreme.
Number two for long-term growth nationally is Luddenham, a Sydney suburb 42km west of the CBD.
There, the median house price has soared 500 per cent since 2012, when a house that now commands $3.3 million would have set bacj a buyer $550,000.
Third is Rhodes, an inner-west postcode about 12km from the heart of Sydney. In Rhodes, a buyer who forked out $860,000 for a median-priced house ten years ago could now expect to list it for a new median of $5.11 million (an increase of 494.2 per cent).
14 Portrush Crescent, Luddenham, NSW
Conisbee said that over ten years, Sydney’s median has lifted the most of all the capitals, although medians in every capital city have at least doubled since 2012.
“There are a lot of factors that have driven this,” she wrote in her weekly economic update. “Like the rest of Australia, low cost of finance has been a big factor. Similarly, strong population growth has supported housing demand.
“Sydney is also a difficult city to build in, with waterways, national parks and other geographic barriers making development difficult. This, along with planning and infrastructure issues, has limited new supply. Ten years ago, the median for Sydney was just $401,000. It’s now $1.35 million, more than tripling over that time period.”
2275 Mornington-Flinders Road, Flinders, VIC
“Although Darwin saw the lowest amount of growth, its median still increased from $269,000 to $550,000. At an aggregate level, it’s held that property prices more than double every 10 years. Once you get to suburb level, there are many suburbs that have seen even higher growth.”
In Melbourne, the Mornington Peninsula postcode of Flinders was number one, with a median that has shot up from $698,500 in 2012 to $3.28 million in 2022 (a change of 369.6 per cent).
Canberra’s Forde was the best suburb for ten-year price growth in the nation’s capital, nudging into the seven-figure realm. In Forde, the median house price is now $1.195 million but in 2012, a buyer would have snagged the same property for $295,000 (up 305.1 per cent).
71 Blizzard Circuit, Forde, ACT
Brisbane’s top suburb for ten-year growth is Marburg; there, the median house price has climbed 185.1 per cent to hit $700,000 (in 2012, the median was $245,500).
Adelaide buyers who bought in Hazelwood Park are laughing all the way to the valuer. A buyer who paid $655,000 for a median-priced house in 2012 is now sitting on a $1.75 million property.
Perth’s list was topped by Herne Hill, which has become a million-dollar-club suburb in ten years. In 2012, the median house price was $405,000 and today, it is $1.045 million (a rise of 158 per cent).
Primrose Sands in Hobart was number one for the Apple Isle, lifting 224.1 per cent from a median of $162,000 ten years ago, to $525,000 in 2022.
16 Lantana Place, Primrose Sands, TAS
Darwin buyers who targeted Johnston made a wise move, with 165.1 per cent house price growth over the past decade elevating the median to $627,000 from $236,500.
Conisbee said that some suburbs have clocked rocketing growth due to an evolution in types of properties for sale – mostly new, instead of overwhelmingly older homes – and better infrastructure in the local area, including schools and public transport.
“Even small changes can make a difference,” Conisbee said. “An outdated retail strip revitalised by a nice café changes the dynamic of a suburb which can flow through to the desirability to live there.”
2 Currie Crescent, Johnston, NT
Conisbee said “another major shift” in the market, which has fueled capital gains, has been the lure of the tree and sea change.
“Even with high levels of flooding occurring at the moment and destruction caused by bushfires, this is not enough to deter people,” she said of the migration to the bush and water.
Where the next wave of deep price growth will hit is challenging to forecast.
“Where we’ll see the most house price growth over the next 10 years is difficult to predict,” Conisbee said.
14 Howard Terrace, Hazelwood Park, SA
“Hobart a decade ago was the most affordable capital city in Australia and no one predicted how significantly it would change to now being one of the most expensive.
“Similarly, the pandemic drove values in regional Australia and in places like Canberra, another change that was certainly not expected even at the start of the pandemic.”
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