They are the property boom suburbs where prices have skyrocketed a staggering 33% in the last 12 months.
Is your neighborhood on the list?
Top growth suburbs in Melbourne are Windsor, Abbotsford, Northcote, Wheelers Hill and Oakleigh South.
“Windsor is one of the areas where there is a gentrification happening – the hipsters are moving in and that brings with it a whole range of infrastructure people love. Windsor is an area which can’t be ignored going forward,” John McGrath, property founder and CEO of McGrath Estate Agents said.
Windsor is particular booming because so many people are moving into the area in such large numbers, its actually transforming the place and there are huge apartment blocks overtaking the original old houses.
“There is a mix of both – Paddington in Sydney was once an area which people didn’t want to live in and now its one of the hottest suburbs in Australia. These areas can change quite quickly,” McGrath said.
He added that the gentrification in areas such as these, and the new population, infrastructure and spending that goes with it, can completely change an area.
In Sydney, Londonderry saw a 33% increase in prices while Westmead enjoyed similar numbers.
“That came off the back of some really significant infrastructure. Whether its roadways, hospitals or learning institutions, its also a big attraction,” McGrath said.
“There is a lot of infrastructure happening in Melbourne, Sydney and Brisbane at the moment so if I was an investor I’d be looking at where is going to benefit off the back of that.”
Canberra is also another favorable area – leading into the election it was a bit quiet as usual but coming off the back of it, the area has seen a good spurt in terms of prices.
Area’s such as Curtin has got some great government housing which is now being transformed into private ownership.
As a result a new social group are moving into the area who want, and bring with them, restaurants, cafes and a range of others things which perhaps didn’t exist before.
Franklin/Harrison, Cook/Aranda, O’Connor and Kambah are also boom suburbs for the Canberra area.
It’s easy to imagine that you’re not going to lose a great deal of money if you invest in the right area on the eastern coast of Australia.
But what prospects to our nation’s other cities have in store?
“Adelaide is on the move but generally usually moves much slower than other cities,” McGrath said.
“Perth is undergoing some challenges now off the back of some really tough few years for resources – for an investor that probably represents value but it is going to be rocky before it gets better.”
“If you stick to the big cities, and the smaller cities around them, they are great investment options,” he said.
First homebuyers are also going to need to look at these areas, not just investors.
“In Sydney, within 10-15km of the city we’re talking $800,000 for a one-bed unit nowadays, so a lot of people should be looking to move or invest in nearby cities instead.”