This article was first published byChristina Zhou on Sep 7, 2016 via domain.com.au | Image: House prices in Melbourne’s Hawthorn and Lilydale grew faster than anticipated. Photo: Alistair Walsh
It’s no secret that house price growth has slowed in most capital cities over the past year, but there is a clutch of stand-out performers that may surprise both buyers and sellers.
These suburbs defied city expectations or have bucked the trend by growing as house prices across cities fell.
While the median house price in Melbourne’s outer east dropped 0.2 per cent over the first half of 2016, houses in Lilydale – the last stop on the local train line – soared 15.4 per cent to a median of $617,500, Domain Group data shows.
Rising house prices in Ringwood over the past year, buoyed by the Eastland shopping centre redevelopment and EastLink, had pushed buyers further out, Barry Plant Lilydale’s Ashley Hutson said.
Open for inspection numbers in the area had nearly doubled compared to the same time last year, but listings were down about 30 to 40 per cent, he said.
Domain Group chief economist Andrew Wilson said Lilydale was relatively affordable compared with many outer-eastern suburbs and also offered a quasi-green change, being near the Yarra Valley.
Hawthorn in Melbourne’s inner east have also bucked the trend of flat prices growth in the region, with its median house price climbing 25.1 per cent over the past six months to $2,116,500.
In Sydney, North Bondi was the standout performer in its region after clocking 23.9 per cent growth to a house median of $2.85 million.
Blocks with older properties in North Bondi were being subdivided for new semi-detached homes, Ray White Double Bay director Elliott Placks said.
It was a more affordable entry point to the suburb and the price was in “a stretch zone” for buyers, he said.
“Because interest rates are historically low, when they look at the opportunity to go and rent something versus buying, the differential isn’t that big,” he said. “That’s why North Bondi has really picked up.”
On the west coast, Wannanup and South Guildford bucked the trend by recording more than 17 per cent growth as Perth house prices continued to slide.
“Perth and Darwin are clearly being impacted by the slump in mining investment … the population growth of Western Australia is slowing markedly, so that underlying demand for property just isn’t there anymore,” Stephen Koukoulas from Market Economics said.
Deakin and Yarralumla were the surprise suburbs for house price growth in Canberra, where medians jumped 12.8 per cent and 30.7 per cent respectively – surpassing Canberra Central’s 4.7 per cent.
Many 1940s to 60s homes on large blocks were being knocked down for a new house, he said, which was fuelling substantial price increases.
“It’s very frequent for the old, knock-down houses to be going for very high prices; people want a clean slate and don’t want to pay too much for a house that’s still in quite good condition because they’re actually paying for something that they don’t want”, he said.
In Brisbane, house prices in Northgate jumped 25.7 per cent to a median of $710,000 over first six months of the year compared with the Brisbane North area, which grew 0.7 per cent.
Kim Murdoch, of agency Place Nundah, said she stumbled across the under-the-radar pocket – near Brisbane airport – by “complete accident” when she was on a delivery job 25 years ago.
Many people still did not know where Northgate was, but it was increasingly discovered and sought for its character homes on wide, leafy streets on the hill, she said. On the other side of Toombul Road, postwar houses were being knocked down for contemporary homes.
House price growth in Adelaide’s Brighton and Park Holme defied the odds by strengthening 24.7 per cent and 19.8 per cent respectively as the Adelaide metro south region dipped 0.2 per cent.
In Hobart, Lindisfarne and West Hobart outperformed their respective regions after growing 12.3 per cent and 18 per cent.
And in the north, houses recorded price gains in Karama and Malak while values dropped 3.3 per cent across Darwin.