Best new million-dollar suburbs for capital growth revealed
Among the new suburbs to have attained or neared a median property price of $1 million, some may have reached a peak for now while others promise investors ongoing strong capital growth.
Strong capital growth over the past three years has elevated more and more suburbs nationwide close to the million-dollar-plus price bracket, but which of these have the most upside potential over the long-term?
Research from Hotspotting and buyers’ agency Propertybuyer has identified the Top 10 million-dollar hotspots around the country for home buyers and investors.
Propertybuyer CEO Rich Harvey said each suburb selected features positive economic and market fundamentals to drive its price performance over the years ahead.
“While million-dollar suburbs are more common than ever before, there are certain pockets, and certain suburbs, that are primed for superior capital growth,” Mr Harvey said.
“These top million-dollar markets are not just randomly selected. Rather, they have the classic drivers of population growth, lifestyle appeal, employment opportunities and infrastructure.
“They generally are also established suburbs rather than greenfield ones that can become oversupplied with new unit stock, plus they are in desirable locations and are strategically positioned suburbs close to a variety of attributes.”
The top 10 list features nine house suburbs and one unit suburb, with four in Queensland, three in New South Wales, two in Victoria and one in South Australia.
Top 10 million-dollar hotspots
| Suburb | State | Property Type | 12mth Sales | Median | 12mth Growth |
|---|---|---|---|---|---|
| Avalon Beach | NSW | Unit | 43 | $1,100,000 | -4% |
| Birtinya | QLD | House | 63 | $960,000 | 12% |
| Brighton | QLD | House | 181 | $945,000 | 14% |
| Chelsea Heights | VIC | House | 51 | $950,000 | 6% |
| Chittaway Bay | NSW | House | 39 | $973,000 | 8% |
| Ferntree Gully | VIC | House | 302 | $898000 | 3% |
| Flinders Park | SA | House | 98 | $935,000 | 13% |
| Kotara | NSW | House | 57 | $913,000 | 1% |
| Southport | QLD | House | 294 | $976,000 | 13% |
| Wynnum West | QLD | House | 185 | $920,000 | 11% |
Source: PropertyTrack, Propertybuyer & Hotspotting
Mr Harvey said most of these suburbs were teetering on the edge of hitting a million-dollar median price, with the smartest property buyers purchasing before they tipped over into the new price threshold.
“These types of million-dollar median suburbs are generally undergoing gentrification, which means ongoing price growth and will allow owners to build their wealth for the future,” he said.
“The trick is to get in before they hit the million-dollar median mark and be secure in the knowledge that you have bought in a fantastic location early and will reap the benefits of ongoing price growth for many years to come.”
Mr Harvey said Chittaway Bay on the NSW Central Coast is one of the top suburbs that epitomises the potential of new million-dollar locations.
“Chittaway Bay has the magic of being a ‘20-minute suburb’ where work, shopping and playing can be all close by.
“It’s on the doorstep of one of the largest employment hubs on the Central Coast, the Tuggerah Business Park, a 75-ha estate, which is considered to be one of the region’s premier business locations.
“Next to this is Westfield Tuggerah, which provides significant shopping and restaurant facilities to the area,” he said.
“Chittaway Bay offers a desirable lifestyle, it has job nodes, good access to transport and plenty of community amenities, including a lakefront that has many kilometres of bike and walking trails plus public parks.”
Hotspotting Director Terry Ryder said Wynnum West on Brisbane’s bayside had often been overlooked by investors, but now had a strong capital growth trajectory.
“The suburb is within commuting distance of the CBD by bus or train, allowing city workers to live a bayside lifestyle not far from the office.
“Importantly, Wynnum West is close to significant job nodes, including the Brisbane Airport precinct and the Port of Brisbane,” Mr Ryder said.
“Wynnum West has long been undervalued, but it is now on a strong trajectory of further growth offering some of the most consistent median price growth on the bayside of Brisbane in the past two years.”
Mr Harvey said another strong performer was Flinders Park in Adelaide, which boasted waterways and lush green spaces.
“Flinders Park is just three kilometres from the Adelaide CBD, is close to the airport, and is just five kilometres from Adelaide’s famous beaches,” Mr Harvey said.
“It is bordered by the River Torrens to the south, plus, the Torrens Linear Park runs alongside the river with kilometres of walking and cycling paths.
“Flinders Park is also serviced by the Flinders Park Village Shopping Centre and has a number of schools including Flinders Park Primary School and Nazareth Catholic College.”
