New research has revealed the top investment-grade suburbs around the country where buyers have an advantage when entering the market.
NSW boasts five of the top 10, followed by Victoria’s three, while Queensland rounds out the top spots with two. Additionally, 80% of the top 10 are house markets, with the remainder comprising units. Scott Spencer, CEO at Well Money, said the ranking was designed to assist investors desiring both a negotiating edge and an investment in a high-quality location. He explained that the reason buyers have an edge in these areas is that “market conditions have been turning in their favor, as demand relative to supply has been falling”.
The top 10 suburbs, as listed by Well Money, are as follows:
- Alstonville, NSW (House)
December’s asking price of $901,600 was part of a 165% growth over the previous decade. Vendors selling at a 10% discount risk losing 1.1 years of profit. Alstonville’s inventory level is currently 2.2 months. Marong, Victoria (House) Over the last 10 years, house prices in this area have grown 127%, culminating in a median asking price of $574,240 at the end of last year. Vendors risk losing 1.3 years of profit if they sell at a 10% discount, while inventory levels rest at 3.8 months.
2. Valla Beach, NSW (House)
Median asking prices in December were $560,000, courtesy of a 147% increase over the previous 10 years. Valla Beach boasts an inventory level of 2.3 months, while vendors could risk losing 1.3 years of profit should they sell at a 10% profit.
3. Caloundra West, Queensland
(House) Vendors could risk parting with 1.4 years of profit should they sell at a 10% discount at the median asking price (as of December 2022) of $749,000 — part of 125% growth across the previous decade. Inventory levels are currently 1.7 months.
5. Burleigh Waters, Queensland (House)
The first suburb with a December median asking price exceeding $1 million ($1.5 million), this Gold Coast suburb experienced 193% growth over the last decade, placing vendors in the position of losing 1.4 years of profit if they sell at a 10% discount. Inventory levels currently sit at 2.8 months.
6. Highett, Victoria (Unit)
The first unit market entry sees buyers asked to fork out $630,000 for a unit — a price that grew 80 per cent over the last decade. On the vendor front, they stand to lose 1.4 years of profit if they sell at a 10 per cent discount, while inventory levels presently are 5.3 months — the highest among the top 10 suburbs.
7. Kellyville Ridge, NSW (Unit)
At $508,250, the median asking price in this suburb grew 89 per cent over the previous decade. Sellers could potentially part with 1.4 years of profit should they choose to sell at a 10 per cent discount. Inventory levels are 1.3 months, the second lowest of the top 10 suburbs.
8. Kariong, NSW (House)
House prices climbing 160 per cent in the 10 years prior meant median house prices in this suburb ended 2022 at $952,750, meaning vendors risk losing 1.4 years of profit should they sell the property at a 10 per cent discount. Inventory levels rest at 1.5 months currently.
9. Figtree, NSW (House)
At a tick over $1 million ($1,070,000), the median house price in this south coast suburb is the second highest on the list, having soared 148 per cent over the previous decade. There are 1.1 months of inventory available in the region, while vendors would lose 1.4 years of profit if they sell their property at a 10 per cent discount.
10. Somerville, Victoria (House)
Concluding last year with a median house price of $800,000 — courtesy of a 145 per cent increase over the previous decade — vendors in Somerville can expect to lose out of 1.5 years of profit if they were to part ways with their property at a 10 per cent discount. While at 5.2 months, the suburb boasts the second-highest inventory levels of any ranked suburb.