Aussies who are looking to purchase an investment property, or just want to have some more power at the negotiating table, might want to look into these 20 suburbs.
New research commissioned by Well Money found Australia’s top 20 investment-grade suburbs where buyers had a negotiating edge.
The research began by considering every suburb in Australia, before filtering out suburbs that weren’t investment-grade, where demand had not been falling and where prices had not increased by at least 45 per cent over the past decade.
Also read: Hottest 100 suburbs to buy property in 2023
That left a small list of investment-grade suburbs where conditions were favourable to buyers and where investors knew they had plenty of bargaining power - because, even if a potential buyer offered a 10 per cent discount to the asking price, vendors would still be giving up only a fraction of the profits they'd made over the previous decade.
The top 20 suburbs are situated in Queensland (eight), New South Wales (five), Victoria (four), Tasmania (two) and Western Australia (one). The list includes six metro and 14 regional locations, as well as 17 house and three unit markets.
Well Money CEO Scott Spencer said the rankings were designed to help investors who wanted to buy in quality locations and held a negotiating edge over vendors.
“Buyers hold a negotiating advantage in each of these suburbs right now, because vendors have enjoyed capital growth of at least 45 per cent over the past decade. So, even if they were to reduce their asking price by 10 per cent, they’d still finish well ahead,” Spencer said.
“Another reason why buyers have the edge in these suburbs is because market conditions have been turning in their favour, as demand - relative to supply - has been falling.”
Spencer added that the suburbs in this report were quality, investment-grade locations, meaning there were plenty of renters looking for homes.
“All of them have low inventory levels - which will put upward pressure on price growth - and low vacancy rates - which will put upward pressure on rental growth. So, the data suggests that investors would be more likely than not to enjoy positive returns,” he said.
Top 20 suburbs
Here are the top 20 suburbs and the median home price as of December 2022:
Alstonville, NSW, 2477 - $901,600
Marong, VIC, 3515 - $574,240
Valla Beach, NSW, 2448 - $560,000
Caloundra West, Qld, 4551 - $749,000
Burleigh Waters 4220, Qld - $1,495,000
Highett, VIC, 3190 - $630,000
Kellyville Ridge, NSW, 2155 - $508,250
Kariong, NSW, 2250 - $952,750
Figtree, NSW, 2525 - $1,070,000
Somerville, VIC, 3912 - $800,000
Pomona, Qld, 4568 - $950,000
Donvale, VIC, 3111 - $825,000
Mountain Creek, Qld, 4557 - $949,000
Bald Hills, Qld, 4036 - $748,800
Vasse, WA, 6280 - $487,990
Mermaid Waters, Qld, 4218 - $1,699,000
Geilston Bay, TAS, 7015 - $695,000
Eaglehawk Neck, TAS, 7179 - $698,000
Glass House Mountains, Qld, 4518 - $765,000
Yarrabilba, Qld, 4207 - $540,800