The most stable suburbs for property investors revealed

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on January 06, 2022 Fact Checked
The most stable suburbs for property investors revealed

A new report has identified the most consistent regions in Australia for property investors.

Hotspotting's Price Predictor Index for Summer 2021/2022 revealed the most stable markets for property investors.

The report said those who prioritise safety in real estate investment can focus on the 'Consistency' markets – the ones that deliver almost identical sales numbers, quarter after quarter.

South Australia's Hallett Cove in Adelaide took out the top spot, however NSW had 16 of the top 50 most consistent suburbs in Australia. 

According to the Price Predictor Index, Hallett Cove has recorded between 50 and 66 sales every quarter for the past three years and has a median house price of $540,000.

Its median house price has increased 15% in the past 12 months, including a 5.5% increase in the most recent quarter.

Terry Ryder, founder of Hotspotting and author of the report, said sales volumes are a more accurate indicator of value than median price data.

"The property industry measures market movements by median price changes - but this is a flawed tool for depicting real estate fortunes," he said in the report.

"Changes in sales volumes are far more relevant and useful: medians record the recent past for prices, while sales volumes predict the future.

"The Price Predictor Index is a tool based on trends in sales volumes – i.e. the number of sales of houses and units.

"History shows there is a correlation between sales volumes and price movements: the number of sales changes first and prices react – with a time lag. This is true whether markets are rising or falling.

"Consistent markets can produce good price growth in the short-term and very solid long-term capital growth rates."

The report listed the 50 most consistent regions for investors in each state.

NSW

Suburb/Region Median House Price
Budgewoi (Central Coast) $600,000
Canley Heights $820,000
Colyton $685,000
Concord $2,325,000
Cooma $385,000
Elderslie $770,000
Fairlight $2,865,000
Glenwood $1,185,000
Gledswood Hills $830,000
Gymea $1,340,000
Jamisontown $770,000
Kariong $775,000
North Bondi $3,580,000
North Lambton $670,000
St Clair $750,000
Winston Hills $1,190,000

Victoria

Suburb/Region Median House Price
Clifton Springs $570,000
Colac $375,000
Geelong West $885,000
Macleod $1,065,000
Newborough $320,000

Queensland

Suburb/Region Median House Price
Albany Creek  $680,000
Bellara  $440,000
Camp Hill $1,085,000
Chermside West $675,000
Manly West $720,000
Moggill $650,000
Rothwell $470,000
Salisbury $645,000
Stafford $725,000
Stafford Heights $720,000

SA

Suburb/Region Median House Price
Hallett Cove $540,000
Marion $565,000
Salisbury Downs $355,000
Valley View $430,000

Tasmania

Suburb/Region Median House Price
Howrah $640,000
Lindisfarne $640,000
Ulverstone $370,000

WA 

Suburb/Region Median House Price
Bassendean $540,000
Beechboro $385,000
Leeming $725,000
Mt Claremont $1,410,000
Sorrento $1,100,000
West Leederville $1,125,000
Willetton $725,000

Source: Hotspotting Price Predictor Index, summer 2021-22 edition 
Full Report: hotspotting.com.au


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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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