Affordable Units Close To CBD’s Suited To First Home Buyers Across Australia
CoreLogic has today released the latest onthehouse.com.au First Home Buyers Unit Growth Report which ranks suburbs with a relative close proximity to CBD’s by highest annual growth rate, and price bracket, with a special focus on targeting properties ideal for First Home Buyers.
For First Home Buyers (FHBs), affordability and availability are important, and units offer a far more viable option across these two measures, especially if minimal commuting time is high on the priority list. But FHBs also care about future capital gains for their journey up the property ladder. So for FHB’s, whilst the dream may be a standalone home, the smarts appear to be all about units.
Units are the far better market performer right across the capital city markets when compared to their detached housing counterparts. Whilst house values have continued to decline over the last twelve months (detached homes fell -3.1% in value, while units fell just -0.5%), capital city house prices are still actually 37.5% up on the last five years, making entering the property market increasingly difficult if going for a standalone house. To better understand unit performance, the latest onthehouse.com.au assessed units within a relatively close proximity of the CBD http://propertynews.onthehouse.com.au/firsthomebuyers to identify highest growth suburbs and potential first home buyer areas. The resulting list details top performing suburbs within 30kms from the CBD in three median value brackets: under $350,000, $350,000 - $500,000 and $500,000 - $800,000. This list is ranked from highest to lowest annual growth, providing diverse options for FHB’s across Australia’s capital cities.
Best buys under $350,000:
Perhaps unsurprisingly, only four capital cities met the criteria for ‘under $350k’ price bracket, so pickings are slim (and competition will be fierce), but of those that did, FHBs with tight budgets would do well to consider Hobart, which represented not only the highest value growth but also the most affordable. Units in Claremont and Glenorchy made the top two suburbs, with the lowest median value units ($258,319 and $341,663 respectively) an annual rate of growth of 11.7% and 18.2% respectively, plus just 12kms (Claremont) and 7kms (Glenorchy) to the CBD.
Suburbs in Queensland, South Australia and Western Australia also featured in this lower value bracket, but not all had positive growth for those potential future capital gains. Prospect in Adelaide had the highest growth at 4.9%.
Best buys $350,000 - $500,000:
FHBs with slightly deeper pockets have much more choice, with 8 capital cities offering units within 30km’s of the CBD in the $350,000 - $500,000 median value bracket.
Melbourne was home to the best performers, with ten qualifying suburbs recording the highest annual unit value growth across all capital city suburbs. Fawkner topped the list (median value $482,865 and a standout 12 month value growth of 25.1%). Beyond Melbourne, the highest 12 month growth was recorded in Perth’s West Leaderville, with unit values up 8.2%. Brisbane offers opportunity too, with all top 10 suburbs recording positive unit value growth, including Spring Hill, just 1km from the CBD. Some higher value suburbs in this medium value bracket are however seeing negative value growth, reflecting the trend of the top price bracket.
Best buys $500,000 - $800,000:
Melbourne dominates the top median value bracket analysed too, contributing the top 10 suburbs with highest annual growth within this range. Clayton South had the highest growth in units at 21.6% over the year to July 18 and a median value of $540,075.
Perth finally gets a look in (compared to a limited/non-existent showing in the lower two price brackets) with 7 of 9 suburbs included in the analysis recording an increase in value over the year. Units in North Coogee actually out performed all of the remaining capital city suburbs, coming in at 11 place for highest growth with an annual increase in unit values of 9.1%. Sydney suburbs in this price bracket also performed better relative to growth within the $350k-$500k price bracket, with all top suburbs showing an increase in unit values over the 12 months.
For full commentary and the detailed suburb statistics list comparing highest growth suburbs for units within 30kms of the CBD in three median value brackets across Australia, download the full onthehouse.com.au report here.