PRD has provided insights into the best areas to invest, buy and rent in major Australian capital cities, such as Brisbane, Sydney, Melbourne and Perth.
The PRD Major City Market Update 2nd Half 2021 analysed whether inner, middle or outer rings provide the best opportunities in these high performing metro markets.
The inner ring was considered between 0-5km from the CBD, while the middle and outer were 5-10km and 10-20km respectively.
Brisbane
The report indicated Brisbane’s inner ring house market saw exponential growth in the second half of 2021 so far, with its median house price sitting at $1.2 million, representing a 29 per cent growth between 2017 and 2021.
Median house prices have shown solid growth since 2017, indicative of continued confidence in the Brisbane market.
Median house rental prices have strengthened, particularly in the middle and outer ring, as working from home becomes a norm.
Brisbane’s once-concerning vacancy rates have continued to decline, currently at a historical low in every sector.
Median house sale price
Inner: $1,200,000 (price growth between 2017 and 2021 of 29 per cent)
Middle: $820,000 (price growth between 2017 and 2021 of 23.3 per cent)
Outer: $625,000 (price growth between 2017 and 2021 of 15.7 per cent)
Unit sales
Inner: $525,000 (price growth between 2017 and 2021 of 5 per cent)
Middle: $456,000 (price growth between 2017 and 2021 of 0.7 per cent)
Outer: $380,000 (price growth between 2017 and 2021 of 1.9 per cent)
House: Average days to sell (Q2)
Inner: 35 days
Middle: 26 days
Outer: 29 days
Unit: Average days to sell (Q2)
Inner: 56 days
Middle: 50 days
Outer: 53 days
House rentals (Q2)
Inner: $595 per week
Middle: $525 per week
Outer: $480 per week
Unit rentals (Q2)
Inner: $440 per week
Middle: $410 per week
Outer: $370 per week
One bedroom 2021
Inner: $380 per week
Middle: $310 per week
Outer: $280 per week
Two bedrooms 2021
Inner: $450 per week
Middle: $400 per week
Outer: $340 per week
Three or more bedrooms 2021
Inner: $565 per week
Middle: $490 per week
Outer: $400 per week
Sydney
Sydney saw strong price growth across all three rings, with the median house prices for both inner and middle rings sitting at and above $2.4 million.
Median five-year house price growth was strongest in the middle ring, which as of 2021 is the most expensive region in the Sydney market.
Median house sale price
Inner: $2,400,000 (price growth between 2017 and 2021 of 11.6 per cent)
Middle: $2,430,000 (price growth between 2017 and 2021 of 15.7 per cent)
Outer: $1,627,000 (price growth between 2017 and 2021 of 13 per cent)
Unit sales
Inner: $1,030,000 (price growth between 2017 and 2021 of 2 per cent)
Middle: $890,000 (price growth between 2017 and 2021 of 3.2 per cent)
Outer: $732,000 (price growth between 2017 and 2021 of 3.1 per cent)
House: Average days to sell (Q2)
Inner: 29 days
Middle: 32 days
Outer: 31 days
Unit: Average days to sell (Q2)
Inner: 43 days
Middle: 41 days
Outer: 47 days
House rentals (Q2)
Inner: $850 per week
Middle: $780 per week
Outer: $580 per week
Two bedroom 2021
Inner: $710 per week
Middle: $595 per week
Outer: $420 per week
Three bedroom 2021
Inner: $930 per week
Middle: $750 per week
Outer: $560 per week
Four or more bedrooms 2021
Inner: $1200 per week
Middle: $1100 per week
Outer: $760 per week
Unit rentals Q2
Inner: $580 per week
Middle: $520 per week
Outer: $450 per week
Melbourne
PRD’s report noted Melbourne’s property market has seen exceptional growth between 2017 and 2021, particularly in the outer ring, by 11.5 per cent for houses and 15.7 per cent for units.
As the city faced COVID-19 lockdowns and restrictions, the outer ring market continued to surge due to working from home options becoming more commonplace and government stimulus to increase home-ownership.
Median house sale price
Inner: $1,560,000 (price growth between 2017 and 2021 of 9.9 per cent)
Middle: $1,350,000 (price growth between 2017 and 2021 of 5.9 per cent)
Outer: $920,000 (price growth between 2017 and 2021 of 11.5 per cent)
Unit sales
Inner: $585,000 (price growth between 2017 and 2021 of 3 per cent)
Middle: $660,000 (price growth between 2017 and 2021 of 11.9 per cent)
Outer: $665,000 (price growth between 2017 and 2021 of 15.7 per cent)
House: Average days to sell (Q2)
Inner: 37 days
Middle: 38 days
Outer: 37 days
Unit: Average days to sell (Q2)
Inner: 55 days
Middle: 52 days
Outer: 48 days
House rentals (Q2)
Inner: $690 per week
Middle: $580 per week
Outer: $520 per week
Two bedroom 2021
Inner: $600 per week
Middle: $495 per week
Outer: $370 per week
Three bedroom 2021
• Inner: $775 per week
• Middle: $575 per week
• Outer: $400 per week
Four or more bedrooms 2021
• Inner: $1000 per week
• Middle: $795 per week
• Outer: $450 per week
Unit rentals (Q2)
Inner: $400 per week
Middle: $400 per week
Outer: $397 per week
One bedroom 2021
Inner: $339 per week
Middle: $495 per week
Outer: $370 per week
Two bedroom 2021
• Inner: $775 per week
• Middle: $575 per week
• Outer: $400 per week
Three or more bedrooms 2021
• Inner: $1000 per week
• Middle: $795 per week
• Outer: $450 per week
Perth
The report recognised the Perth market has had a turnaround over the past 12 months, with strong annual growth this year across all rings.
Despite this, affordability remains comparatively higher than other capital cities due to historic price softening
Median House Sale Price
Inner: $900,000 (price growth between 2017 and 2021 of 15.7 per cent)
Middle: $645,000 (price growth between 2017 and 2021 of 14.2 per cent)
Outer: $535,000 (price growth between 2017 and 2021 of 13.8 per cent)
Unit Sales
Inner: $440,000 (price decline between 2017 and 2021 of 4.3 per cent)
Middle: $450,000 (price growth between 2017 and 2021 of 14.2 per cent)
Outer: $387,000 (price decline between 2017 and 2021 of 3.3 per cent)
House: Average days to sell (Q2)
Inner: 36 days
Middle: 37 days
Outer: 34 days
Unit: Average days to sell (Q2)
Inner: 45 days
Middle: 43 days
Outer: 46 days
House rentals (Q2)
Inner: $550 per week
Middle: $480 per week
Outer: $450 per week
Two bedroom 2021
Inner: $450 per week
Middle: $370 per week
Outer: $350 per week
Three bedroom 2021
• Inner: $550 per week
• Middle: $440 per week
• Outer: $400 per week
Four or more bedrooms 2021
• Inner: $740 per week
• Middle: $570 per week
• Outer: $500 per week
Unit rentals (Q2)
Inner: $420 per week
Middle: $400 per week
Outer: $385 per week
One bedroom 2021
Inner: $350 per week
Middle: $330 per week
Outer: $340 per week
Two bedroom 2021
• Inner: $425 per week
• Middle: $380 per week
• Outer: $380 per week
Three or more bedrooms 2021
• Inner: $500 per week
• Middle: $440 per week
• Outer: $400 per week
