Would-be vendors in popular holiday destinations such as Byron Bay and Bright could be sitting on capital growth in excess of $2 million.
New data from PropTrack has revealed the top 10 suburbs that have experienced property price growth in excess of 200 per cent and, in some cases, more than 300 per cent.
Holiday hotspot and home of Hollywood actor Chris Hemsworth, Byron Bay tops the list, recording a whopping 361.5 per cent price growth since 2013.
A decade ago the median house price in the coastal suburb was $650,000 but now sits at a huge $3 million.
Coming in second is the North East Victorian hotspot of Bright, which sits in the alpine foothills below Falls Creek.
In 2013 the median house price in Bright was $362,500 and it has since grown 256.6 per cent to $1.29 million.
PropTrack Senior Economist Eleanor Creagh said property had proved to be a top investment for many homeowners who purchased in 2013.
“The past 10 years and accompanying decline in interest rates have seen staggering growth in property prices in many parts of the country,” she said.
“Prices at a national level have increased by an enormous 83 per cent but there are suburbs where house values in particular have seen substantially more growth, in some cases north of 300 per cent.
“The biggest winners have been houses in desirable or coastal destinations, with lifestyle regions of the Southern Highlands and holiday hotspots like Byron Bay performing exceptionally well.
“Many of the top performing suburbs are perennially popular, in desirable locales and have seen an incredible boom over the past 10 years, not just limited to the Covid period.”
Other places to make the list include Suffolk Park in NSW where the median house price has risen 256.1 per cent over the past 10 years to $2.1 million.
The Queensland suburb of Buddina, on the Sunshine Coast, also made the list, with 234.9 per cent growth over the past 10 years.
Its median house price is now $1.65 million, up from $492,750 in 2013.
Ms Creagh said while there was now some downward pressure on property prices, these were being balanced by demand drivers such as immigration and tight rental markets.
“We have now reached, or are very close to, a peak in the interest rate cycle,” she said.
“While the significant reduction in borrowing capacities and deterioration in affordability implies larger price falls than have been seen to date, the downward pressure on prices from the substantial tightening already pushed through is being counterbalanced by strong demand drivers.
“A strong rebound in immigration and tight rental markets, combined with the limited stock on market, are underpinning home prices.
“Now the RBA has paused its tightening cycle, the bottoming-out process is likely to continue, with home prices further stabilising as some of the uncertainty buyers have experienced reduces.
“With the end of rate rises seemingly in sight, both buyers and sellers can better adjust to the higher interest rate environment and move ahead with their property plans.”
