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Onthehouse data reveals the top suburbs for Gen Y to buy

Onthehouse.com.au has shed light on the generational gap when it comes to home ownership, comparing the best performing suburbs over the past three decades with predictions of long term future growth.

Using the latest data from Onthehouse Holdings’ property data experts Residex, the findings provide insights into the opportunities facing the wave of Generation Y first-time buyers as they look to emulate successful Baby Boomers in the property market.

The data reveals that:

  • Then and now, outer city suburbs tend to grow faster than inner city areas, potentially offering greater returns for buyers.
  • Kellyville Ridge (Sydney), Mickelham (Melbourne), and Heathwood (Brisbane) were the top suburbs to buy in 1980. Homeowners who bought there in 1980 have seen their property values grow 678%, 647% and 1900% respectively.
  • Inner-city suburbs that have bucked this trend include Bronte in Sydney and Albert Park in Melbourne.

John Edwards, spokesperson for Onthehouse.com.au, said: “We’ve all heard anecdotal evidence of people who bought cheap in the 1980’s and are now sitting on huge returns, and this data shows that those who were prepared to invest in less popular areas with good growth potential back in the 80’s and 90’s would indeed have been handsomely rewarded.

“As Gen Y start to enter the property market over the next few years, they will also need to balance their desire to live in a ‘popular’ area versus the long term value of their new home.”

In order to find suburbs that would offer a similar proposition to first-time buyers when it came to long-term growth, onthehouse.com.au selected the top suburbs based on Residex’s eight year prediction model. The data was adjusted to focus on properties valued under $500,000, to make it more relevant for first-time buyers.

The future predictions reveal that:

  • Sydney’s western suburbs, Melbourne’s south east and suburbs in Brisbane’s south, far north and east stand out in terms of growth potential.
  • Yellow Rock in Sydney, Skenes Creek in Melbourne and Munruben in Brisbane top the prediction models.

Edwards added: “Today’s bargain suburbs could deliver great results for homeowners in the long term. Of course there will be variations depending on property itself and its location, but overall we believe these suburbs could be the future hidden gems. It’s really important that any first-time buyers do extensive research before making that commitment.”

Top five areas in Sydney with highest growth rates 1980 – 2013 (adjusted for inflation):

  1. Kellyville Ridge – up 678%
  2. Blairmount – up 621%
  3. Windsor Downs – up 531%
  4. Duffys Forest – up 522%
  5. Bronte – up 490%

Top five areas in Melbourne with highest growth rates 1980 – 2013 (adjusted for inflation):

  1. Mickleham – up 647%
  2. Elwood – up 585%
  3. Port Melbourne – up 576%
  4. Albert Park – up 574%
  5. Deepdene – up 569%

Top five areas in Brisbane with highest growth rates 1980 – 2013 (adjusted for inflation):

  1. Heathwood – up 1900%
  2. Berrinba – up 1775%
  3. Peachester – up 1234%
  4. Delaneys Creek – up 946%
  5. Forestdale – up 874%
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Top Five areas in Sydney predicted to grow in the next eight years:

  1. Yellow rock – predicted to grow by 10%
  2. Glenmore Park – predicted to grow by 10%
  3. Hassall Grove – predicted to grow by 10%
  4. Oakhurst – predicted to grow by 10%
  5. Erskine Park – predicted to grow by 10%

Top Five areas in Melbourne predicted to grow in the next eight years:

  1. Skenes Creek – predicted to grow by 9%
  2. Caroline Springs – predicted to grow by 8%
  3. Geelong – predicted to grow by 8%
  4. Apollo Bay – predicted to grow by 8%
  5. South Geelong – predicted to grow by 8%

Top Five areas in Brisbane predicted to grow in the next eight years:

  1. Munruben – predicted to grow by 10%
  2. Heritage Park – predicted to grow by 10%
  3. Scarborough – predicted to grow by 9%
  4. Chambers Flat – predicted to grow by 9%
  5. Lota – predicted to grow by 9%

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