Lakemba, a suburb of Sydney in the Canterbury region, has been Australia's best-performing suburbs for the past decade, according to a joint study by Property Investment Professionals of Australia (PIPA) and CoreLogic.
According to the study, housing in Lakemba has recorded the strongest annual capital growth in Australia in the past 10 years, increasing on average by 8.4% per year. In fact, the value of homes in this suburb more than doubled over the period, reaching $ 881,000.
The suburb with the second best annual price growth was another suburb of Sydney, Oatlands – Dundas Valley. Prices in this district increased on average by 8.1% per year. Over the decade, the median home value increased from $ 662,302 to $ 1.44 million.
The Rockbank from Melbourne to Mount Cottrell was the third best performer of the decade. During the period, residential values ??in this suburb jumped 7.9% per year. The median price of homes increased from $ 279,684 in 2010 to $ 598,268 this year.
Substantial gains were recorded in the affordable and luxury segments. The report also showed that in moderate markets, there were suburbs that reversed the trend.
"Even though Adelaide has only recorded an average annual growth of 1.3% over the past decade, its most successful location in Prospect has seen its prices increase by 3.4% per year on the period, "said Peter Koulizos, president of PIPA.
Darwin had a similar situation. The city registered a 1.3% annual decline over the decade, but its upper suburb, Rosebery-Bellamack, registered an annual increase of 3.2%.
"This is actually quite common, as there are submarkets in the markets that operate to the beat of their own drums, usually due to the constant high demand from buyers wishing to live or d & # 39; 39; invest in these places, "said Koulizos.
The results of the study show how crucial it is to view investment as a long-term strategy. Tim Lawless, director of CoreLogic Research, said that short-term price movements are less important than longer-term trends.
"Over the past 10 years, the Sydney and Melbourne areas have outperformed most other markets due to strong economic conditions and high migration rates, which has fueled demand for housing, but these rates High capital gains have eroded accessibility to housing and have reduced rental yields, "he said.
Lawless, too, the best markets for the next 10 years will likely be different.
"As in the previous decade, where, for example, mining regions and regional coastal markets had some of the best performing areas," he said.
The tables below show the suburbs of each capital with the highest average annual growth in the last 10 years:
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