Of the dozens of research reports and opinion pieces that Propertyology produces each year, very few have attracted as much interest as our recent report, Australian real estate’s equivalent of the Bubonic Plague.
Australia has produced a tsunami of residential apartment construction in the short time since the turn of this century. To put this into context, it’s taken circa 250 years to build the 10 million dwellings which today house Australia’s 25 million population, yet we’ve built 1 million apartments just within our 8 capital cities over the last 16 years.
For a variety of reasons, Propertyology is very concerned for all owners of high-rise apartments that were built during the last 20 years. One such concern is the enormous repair bills for major structural defects – several highly publicised buildings is just the tip of the iceberg.
Every year, for ever and a day, there will be tens of thousands more apartments with major defects that get exposed and very few apartment owners will have any form of financial recourse. Consequently, existing apartment owners now have the enormous uncertainty of when-will-it-happen-to-me while the pool of prospective future buyers will forever diminish.
The financial performance of high-density apartments in every Australian city over the last decade has already been horrible.
Related Story: How To Avoid The Bubonic Plague Of Australian Real Estate
Before some of you get too carried away, yes, tens of thousands of high-rise apartments across Australia have produced asset value growth over the last decade. This is particularly the case in Sydney and Melbourne whom both benefitted from a 4-year boom during that decade. But high-rise apartment owners should be more concerned with the price growth differential between a standard house in their city and those apartments – the gap is ENORMOUS!
Each and every year that an individual city’s housing market performs sluggishly, the risk of high-rise apartment value decline significantly increases. Zero growth or even substantial losses over the next decade are highly possible. The precedent has already been set in hundreds of high-density suburbs across Australia.
With the likelihood that this real estate bubonic plague will be the biggest issue to affect Australian property markets in our 250+ year history, we’ve taken the time to compare the total increase in Australia’s big-city median detached-house prices over the decade ending May 2019 with the median apartment price increase in hundreds of high-density suburbs. For the ‘non-believers’, we’ve also included examples of individual properties with real values and sale dates to illustrate the significant under-performance.
High-rise apartment owners would be wise to consider their own circumstances after reviewing this report and our earlier Bubonic Plague report.
Melbourne
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $392,000 | $750,000 | 6.7% | 91% |
- When compared directly to its own city’s performance of detached house price growth over the last decade, Melbourne’s high-rise apartment property markets have performed significantly worse than every other Australian city;
- High-density is no longer confined to Melbourne’s inner 10-kilometre ring. Suburbs like Dandenong, as far as 34 kilometres from Melbourne’s CBD, now have six apartments for every 4 houses. In Box Hill, Elwood and Parkville, apartments represent 8 out of 10 dwellings;
- As shown in the right hand column of the table below, the detached-house versus apartment median price growth over the last 10-years is staggering. While Greater-Melbourne’s median house price increased by 91 per cent, Abbotsford (only 3 per cent), South Yarra and Balwyn (both 18 per cent), St Kilda (30 per cent) and Richmond (35 per cent) are among a long list of suburbs where the comparative apartment performance was appalling;
Related Article: Next Step For Melbourne And Sydney Property Owners
- To put percentages into dollar terms, Brunswick’s median house price increased from $540,000 to $950,000 (84 per cent growth) over the last 10-years while the median apartment price went from $400,000 to $513,000 (28 per cent growth). That’s a differential of 56 per cent (84 less 28 per cent growth) and one which is likely to widen in future years because of the ‘Bubonic Plague affect’;
- Being centrally located, in a trendy area, being close to a train station, or having a sleek fitout mean absolutely nothing from a capital growth perspective if there are thousands of same-same ‘Lego properties’ for buyers to choose from. There’s no significant point of difference from one apartment to the next;
- 10-years ago, for $380,000, one could have purchased a nice apartment in Maribyrnong, 10-kilometres north-west of the CBD, and today it’s worth $480,000 (25 per cent growth). Instead, one could have purchased a good house and backyard at Lalor for $300,000 and today it would be worth $594,000 (98 per cent growth).
| High Density Suburbs [Apartments / Houses] |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Docklands | 100% | 11% | 80% |
| Southbank | 100% | 24% | 67% |
| Melbourne City | 99% | 27% | 64% |
| St Kilda | 87% | 30% | 61% |
| West Melbourne | 86% | 30% | 61% |
| South Yarra | 84% | 18% | 73% |
| Box Hill | 77% | 37% | 54% |
| North Melbourne | 77% | 24% | 67% |
| Elwood | 77% | 38% | 53% |
| Parkville | 77% | 12% | 79% |
| Collingwood | 73% | 28% | 63% |
| Abbotsford | 70% | 3% | 88% |
| Fitzroy | 66% | 40% | 51% |
| Clayton | 65% | 42% | 49% |
| Prahan | 63% | 35% | 56% |
| Toorak | 63% | 47% | 44% |
| Port Melbourne | 63% | 39% | 52% |
| Armadale | 63% | 32% | 59% |
| Richmond | 62% | 35% | 56% |
| Nottinghill | 62% | 30% | 61% |
| Dandenong | 62% | 45% | 46% |
| Hawthorn East | 59% | 27% | 64% |
| Brunswick | 52% | 28% | 63% |
| Kensington | 51% | 27% | 64% |
| Hughesdale | 50% | 48% | 43% |
| Doncaster | 46% | 28% | 63% |
| Burwood | 45% | 47% | 44% |
| Balwyn | 44% | 18% | 73% |
| Surrey Hills | 37% | 45% | 46% |
| Clifton Hill | 37% | 27% | 64% |
| Coburg | 32% | 37% | 54% |
Canberra
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $450,000 | $660,000 | 3.9% | 46% |
- Apartments and townhouses, as opposed to detached houses, have long been the more common dwelling type in Canberra. 62 per cent of all new dwellings approved in Canberra over the last 16 years were apartments and townhouses;
- 8 out of 10 properties (or more) in suburbs such as Turner, Phillip, Bruce and Braddon are apartments;
- Over the 10-years ending May 2019, Canberra’s median house price increased by 46 per cent. The median apartment price increases were below 20 per cent in 25 individual Canberra suburbs;
- The largest differential between 10-year median apartment price growth and Greater-Canberra’s house price growth were in Watson (65 per cent difference), Barton (58), Forrest (56), and Hawker (55). On the other hand, the 52 per cent increase in the median apartment price in the suburb of Lyons is a superior growth rate to house prices in many suburbs.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| City | 99% | 2% | 44% |
| Kingston | 95% | 22% | 24% |
| Barton | 94% | -12% | 58% |
| Greenway | 92% | 1% | 45% |
| Braddon | 91% | 10% | 36% |
| Phillip | 88% | 2% | 44% |
| Lawson | 84% | 0% | 46% |
| Turner | 83% | 2% | 44% |
| Bruce | 78% | 3% | 43% |
| Griffith | 64% | 32% | 12% |
| Forrest | 62% | -10% | 56% |
| Wright | 62% | 0% | 46% |
| Coombs | 61% | 0% | 46% |
| Lyneham | 61% | 19% | 27% |
| Gungahlin | 55% | 20% | 26% |
| Mawson | 53% | 18% | 28% |
| Franklin | 50% | 9% | 37% |
| Lyons | 44% | 52% | 6%** |
| Bonython | 41% | 31% | 15% |
| Harrison | 40% | 15% | 31% |
| Palmerston | 35% | 17% | 29% |
| Macquarie | 32% | 7% | 39% |
| Florey | 14% | 32% | |
| Hawker | -9% | 55% | |
| Holt | 15% | 31% | |
| Page | 11% | 35% | |
| Watson | -19% | 65% | |
| Narrabundah | 10% | 36% | |
| Gordon | 21% | 25% | |
| Chifley | 9% | 37% | |
| Pearce | 10% | 36% |
Brisbane
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $412,000 | $560,000 | 3.1% | 36% |
- Brisbane’s year-after-year modest price growth for all of the last decade has culminated in a 36 per cent total increase in Greater-Brisbane’s median house price. The table below contains the names of 20 suburbs wherein the median apartment value today is below that of 10 years ago;
- Brisbane’s contagion of high-rise apartment construction over the last 10 years was mostly contained to the inner 3-kilometre ring along with middle-ring suburbs that are adjacent to major Westfield shopping centres and / or universities. Several suburbs in the municipality of Logan have also seen declines in median apartment values over the last 10 years;
Related Article: Queensland’s Double-Digit Growth Potential
- On the balance of probability, there would be very few high-rise apartments that were built at any stage within the last decade that today have not subsequently declined in value. Apartment owners hit the hardest are those within newer buildings in suburbs such as Newstead, Milton, Bowen Hills, Hamilton, Fortitude Valley, Chermside and West End;
- 10-years ago, for $420,000, one could have purchased a new apartment in Bowen Hills, 2-kilometres north of the CBD, and today it’s worth $365,000 (a 13 per cent decline). Instead, one could have purchased a good house and backyard at Petrie for $365,000 and today it would be worth $450,000 (23 per cent growth);
- Another example of the importance of appropriate asset selection is the inner-west suburb of Auchenflower. While the median house price increased from $695,000 to $1,277,500 (84 per cent) over the last decade, the median apartment price actually declined by 1 per cent. The lost opportunity cost from lots of same-same dwellings is big!
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Brisbane City | 99% | 14% | 22% |
| Newstead | 99% | -28% | 64% |
| Fortitude Valley | 97% | -4% | 40% |
| Bowen Hills | 96% | -13% | 49% |
| South Brisbane | 94% | 21% | 15% |
| Kangaroo Point | 90% | 19% | 17% |
| Spring Hill | 88% | -7% | 43% |
| Teneriffe | 88% | 3% | 33% |
| Milton | 80% | -21% | 57% |
| New Farm | 79% | 26% | 10% |
| Lutwyche | 77% | 30% | 6% |
| Hamilton | 75% | 18% | 18% |
| West End | 75% | -5% | 41% |
| Nundah | 74% | -6% | 42% |
| Chermside | 72% | -4% | 40% |
| Toowong | 70% | 9% | 27% |
| Taringa | 70% | 1% | 37% |
| Kelvin Grove | 68% | -8% | 44% |
| St Lucia | 68% | 7% | 29% |
| Woolloongabba | 65% | 2% | 34% |
| Auchenflower | 63% | -1% | 37% |
| Herston | 57% | 7% | 29% |
| Annerley | 57% | 7% | 29% |
| Greenslopes | 57% | 12% | 24% |
| Coorparoo | 56% | 7% | 29% |
| Morningside | 55% | 7% | 29% |
| East Brisbane | 54% | 4% | 32% |
| Bulimba | 53% | 27% | 9% |
| Indooroopilly | 52% | 4% | 32% |
| Windsor | 50% | 16% | 20% |
| Carina Heights | 46% | -3% | 39% |
| Newmarket | 44% | 7% | 29% |
| Sherwood | 44% | -6% | 42% |
| Woodridge | 41% | -14% | 50% |
| Mount Gravatt | 38% | 0% | 36% |
| Upper Mount Gravatt | 37% | -3% | 39% |
| Cleveland | 37% | 9% | 27% |
| Beenleigh | 35% | -15% | 51% |
| Wilston | 31% | 36% | 0% |
| Enogerra | 31% | -13% | 49% |
| Cannon Hill | 30% | 0% | 46% |
| Corinda | 29% | -3% | 39% |
| Springwood | 28% | -1% | 37% |
| Waterford West | 27& | -11% | 47% |
| Browns Plains | 24% | -2% | 38% |
| Underwood | 23% | -2% | 38% |
| Kippa Ring | 23% | -13% | 49% |
| Carindale | 10% | -10% | 46% |
Sydney
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $456,000 | $915,000 | 7.2% | 100% |
- From the arrival of the First Fleet at Botany Bay in 1788 to the 2016 Census, Sydney amassed 1.8 million dwellings. With 43 per cent of all dwelling stock now being apartments and townhouses (compared to the 27 per cent national average), Sydney has the highest density in Australia. Sydney is a mature apartment market with more than 6 out of every 10 new dwellings built each year, for the last 20 years, being apartments;
- Over the 10-years ending May 2019, Greater-Sydney’s median house price increased by 100 per cent. 65 per cent of that growth occurred during a 4.5-year property market boom which ended in July 2017;
Related Article: Learnings From Sydney’s 30-Year Property Market History
- As they say, ‘rising tides lift all ships’ so Sydney apartments also appreciated in value. The rates of growth however, were nowhere near as significant as detached houses. The table below contains 24 individual suburbs with a growth in median apartment value that was approximately half that of Greater-Sydney’s detached house price growth;
- Suburbs such as Ryde, which have seen an enormous increase in apartment construction in recent years, produced only a very small portion of apartment price growth (25 per cent, compared to 100 per cent for Greater-Sydney houses). Norwest and Strathfield South (29 per cent growth), Killara (32 per cent), Little Bay (34 per cent), Holroyd (40 per cent), and Asquith (41 per cent) were the weakest Sydney property markets;
- There will be literally thousands of Sydney apartments which today are worth significantly less than 4 or 5 years ago. It took us very little time to find the apartment examples in these images.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Wentworth Point | Most suburbs in Sydney have 50% or more apartments. | 46% | 54% |
| Rhodes | 53% | 47% | |
| Breakfast Point | 54% | 46% | |
| Waterloo | 67% | 33% | |
| Rosehill | 46% | 54% | |
| Cremorne Point | 57% | 43% | |
| Camperdown | 65% | 35% | |
| Holroyd | 40% | 60% | |
| Botany | 59% | 41% | |
| Ryde | 25% | 75% | |
| Little Bay | 34% | 66% | |
| Bronte | 53% | 47% | |
| Greenwich | 57% | 43% | |
| North Ryde | 25% | 75% | |
| Strathfield South | 29% | 71% | |
| Norwest | 29% | 71% | |
| Killara | 32% | 68% | |
| Asquith | 41% | 59% | |
| North Turramurra | 43% | 57% | |
| Warrawee | 46% | 54% | |
| Dundas | 50% | 50% | |
| Winston Hills | 53% | 47% | |
| Carlingford | 55% | 45% | |
| Guildford | 55% | 45% | |
| Pymble | 56% | 44% | |
| Wahroonga | 61% | 39% |
Perth
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $430,000 | $515,000 | 1.8% | 19% |
- Australia’s fourth biggest city has never embraced apartment lifestyle, but that hasn’t stopped local developers trying to force the issue with the construction of numerous high-rise apartment buildings. The table below contains 19 suburbs with more than 40 per cent of total dwelling stock being apartments and townhouses;
- While the last decade was a lean one for Perth’s property market, Greater-Perth’s median detached house price still produced a 19 per cent increase;
- 22 Perth suburbs produced between zero growth and a 32 per cent decline in median apartment value over the last 10 years. Numerous inner-city suburb apartment markets performed poorly due to over-supply (and over-priced) high-rise construction, while many outer suburb apartment markets performed poorly due to low apartment demand in locations where the cost for a detached house is quite accessible;
- With a 21 per cent decline in median apartment value, the cosmopolitan Perth inner-city suburb of Burswood was one of Australia’s worst-performed apartment markets over the 10-years ending May 2019. Hundreds of property buyers would have initially been lured by the aesthetic of a shiny new apartment with water and city views and being located adjacent to the new Perth Stadium and the Crown entertainment precinct. Contrary to all of the real estate hullabaloo, neighbourhood features and benefits are not property market fundamentals;
- The apartment pictured above is a standard 2-bedroom, 2-bathroom configuration within a modern, inner-city Burswood complex. The original owner paid $810,000 in January 2008 and sold it 10-years later [June 2018] for $535,000. Instead of this $275,000 capital loss (or 34 per cent), a modest gain would have occurred if one purchased a standard Perth house during this period;
- Older-style apartments with character, found in locations such as Fremantle, performed quite well over the last decade. This is proof that apartments per se aren’t necessarily poor asset choices – substandard performance occurs as a result of cookie-cutter, same-same, mass production (and poor construction industry governance which has resulted in a significant deterioration in product quality).
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| East Perth | 93% | -1% | 20% |
| Perth City | 87% | -9% | 28% |
| Burswood | 77% | -21% | 40% |
| Osborne Park | 70% | -11% | 30% |
| South Perth | 64% | 16% | 3% |
| Maylands | 60% | 3% | 16% |
| Como | 58% | 7% | 12% |
| North Fremantle | 58% | 37% | 18% ** |
| Subiaco | 56% | -10% | 29% |
| Victoria Park | 56% | 1% | 18% |
| Tuart Hill | 54% | -11% | 30% |
| Leederville | 51% | -4% | 26% |
| Rivervale | 51% | -7% | 26% |
| Fremantle | 50% | 38% | 19% ** |
| Midland | 49% | -17% | 36% |
| Joondanna | 47% | 4% | 15% |
| Wembley | 47% | -1% | 20% |
| Claremont | 47% | 0% | 19% |
| Mount Lawley | 43% | 9% | 10% |
| Cannington | 39% | -3% | 22% |
| Yokine | 36% | -3% | 22% |
| Rockingham | 34% | 7% | 12% |
| Palmyra | 34% | 10% | 9% |
| Bicton | 31% | 3% | 16% |
| East Fremantle | 30% | -3% | 22% |
| Cottesloe | 30% | -8% | 27% |
| Innaloo | 29% | -9% | 28% |
| Balcatta | 21% | -6% | 25% |
| Hamilton Hill | 19% | 0% | 19% |
| Queens Park | 17% | -20% | 39% |
| St James | 17% | -17% | 36% |
| Armadale | 16% | -32% | 51% |
| Kelmscott | 10% | -29% | 48% |
Adelaide
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $364,000 | $480,000 | 2.8% | 31% |
- Adelaide’s property market has run mostly parallel to Brisbane over the last decade. Greater-Adelaide’s median house price increased by 31 per cent during the 10-years ending May 2019;
Related Article: Adelaide Rental Market Analysis
- Aside from Adelaide’s city heart and neighbouring suburbs, the seaside suburb of Glenelg is one of the very few suburbs with apartment prominence. Villas and townhouses are found throughout suburban Adelaide.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Adelaide City | 83% | 12% | 19% |
| Glenelg | 80% | 24% | 7% |
| Ashford | 65% | 0% | 31% |
| North Adelaide | 57% | 20% | 11% |
| Glenside | 50% | 93% | 62% ** |
| Kensington | 49% | 30% | 1% |
| Norwood | 46% | 32% | 1% ** |
| Payneham | 45% | 10% | 21% |
| Plympton | 43% | 20% | 11% |
| Walkerville | 42% | -14% | 45% |
| Camden Park | 40% | 4% | 27% |
| Mawson Lakes | 37% | 2% | 29% |
| Unley | 35% | 37% | 6% ** |
| Goodwood | 29% | -14% | 45% |
| Salisbury | 27% | -25% | 56% |
Darwin
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $430,000 | $490,000 | 1.3% | 14% |
- Darwin’s property market has performed similar to Perth’s over much of the last decade, both adversely affected by the downturn of the resources sector;
- Over the last 16 calendar years, 51 per cent of all new dwellings approved in Darwin were apartments. The below table lists the suburbs with the highest concentration of attached dwellings;
- Whilst Darwin’s median house price produced growth of 14 per cent over the 10-years ending May 2019, there are 10 suburbs wherein the median apartment price is lower today than 10 years ago. The suburb of Bayview had the highest price growth differential (Darwin houses increased by 14 per cent while Bayview apartments declined by 19 per cent).
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Darwin City | 95% | -5% | 19% |
| Larrakeyah | 84% | 2% | 12% |
| Coconut Grove | 77% | -18% | 32% |
| Woolner | 75% | -15% | 29% |
| Parap | 67% | -14% | 28% |
| Nightcliff | 66% | 11% | 3% |
| Fannie Bay | 61% | -12% | 26% |
| Rapid Creek | 59% | -5% | 19% |
| Bayview | 57% | -19% | 33% |
| Marrara | 55% | -13% | 27% |
| Milner | 48% | -2% | 16% |
| Leanyer | 29% | -13% | 27 |
Central Coast
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $323,000 | $635,000 | 6.8% | 96% |
- Affordability pressures and congestion continue to force some Sydney residents out of the harbour city to neighbouring regional locations like the New South Wales Central Coast. Apartment construction is already in higher proportions than a few capital cities – 41 per cent of all new dwellings approved over the last 16 years were apartments;
- A ripple affect from Sydney’s last booming property market generated a 96 per cent increase in Central Coast’s median house price over the 10-years ending May 2019. While this also lifted the median apartment values across the region, the table below (once again) shows that apartment values didn’t appreciate anywhere near as much as detached houses. Avoca Beach (38 per cent growth), Terrigal (56 per cent) and The Entrance North (57 per cent) produced the largest price growth differential.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Gosford City | 92% | 69% | 27% |
| West Gosford | 69% | 59% | 37% |
| Point Frederick | 62% | 93% | 3% |
| East Gosford | 55% | 63% | 33% |
| Ettalong Beach | 51% | 97% | 1% ** |
| Entrance North | 47% | 57% | 39% |
| North Gosford | 37% | 79% | 17% |
| Terrigal | 36% | 56% | 40% |
| Long Jetty | 36% | 78% | 18% |
| Woy Woy | 31% | 78% | 18% |
| Avoca Beach | 24% | 38% | 58% |
Newcastle
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $325,000 | $610,000 | 6.5% | 87% |
- Australia’s 8th largest metropolis, Newcastle’s median house price increased by 87 per cent over the last 10 years;
- While 71 per cent of all dwellings in the Newcastle municipality were recorded as detached houses at the 2016 Census, Propertyology notes that between 64 per cent and 82 per cent of all new dwellings approved in each of the last four calendar years were apartments. The port city’s housing density is rapidly intensifying;
Related Article: Population Winners And Losers
- Existing Newcastle apartment owners and prospective real estate buyers would be wise to learn the valuable lessons from several capital cities and understand the downside concerns which come from high-density apartment ownership.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Newcastle City | 95% | 64% | 23% |
| Newcastle West | 95% | 75% | 12% |
| Wickham | 65% | 0% | 87% |
| Newcastle East | 64% | 48% | 39% |
| Cooks Hill | 48% | 62% | 25% |
| Jesmond | 43% | 35% | 52% |
| Adamstown | 29% | 67% | 20% |
| Fingal Bay | 28% | 38% | 49% |
| Hamilton | 27% | 58% | 29% |
| Wallsend | 17% | 52% | 35% |
| Beresfield | 39% | 48% |
Wollongong
| Median house price [May 2009] | Median house price [May 2019] | Average annual growth rate [10YE May 2019] | Cumulative capital growth rate [10YE May 2019] |
| $369,000 | $720,000 | 6.9% | 95% |
- With 48 per cent of all new dwellings approved in Wollongong over the last 16 years being apartments, the steel city’s housing density is now higher than Brisbane and Perth;
- Like it’s regional neighbours, Newcastle and Central Coast, Wollongong’s property market rode on the back of Sydney’s last boom and is now in a downturn. 95 per cent price growth in median house prices over the last decade is an outstanding result;
- Generally speaking, a modern Wollongong apartment might have increased in value by (say) 60 per cent over the 10-years ending May 2019 while detached house prices doubled. Moving forward, unless there is another boom during the next decade, there must be some concern for asset value declines for Wollongong apartment within modern high-density buildings.
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Bellambi | 35% | 79% | 16% |
| Austinmer | 24% | 15% | 80% |
Geelong
| Median House Price [May 2009] |
Median House Price [May 2019] |
Average Annual Growth Rate [10YE May 2019] |
Cumulative Capital Growth Rate [10YE May 2019] |
| $288,000 | $535,000 | 6.4% | 85% |
Related Article: Seven Great Cities About To Be Transformed
| High Density Suburbs (Apartments / Houses) |
Apartment Capital Growth Rate [10YE May 2019] |
Price Growth Differential [House v Apartment] |
|
| Geelong City | 43% | 74% | 11% |
| Herne Hill | 32% | 39% | 46% |
| Geelong West | 27% | 38% | 47% |
DISCLAIMER: Median value, price growth rates, and house-apartment density ratios has been sourced from CoreLogic and ABS. Sales data and address of individual property assets used as examples in this report have been sourced from realestate.com and CoreLogic. Data in this report should not be relied upon as being accurate. Opinions and comments in this report are general in nature and are not to be taken as personal financial advice. Independent advice from a qualified professional is recommended.
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