Thursday, 25 July 2013

How have the investor magazine hotspots fared two years on?

How have the investor magazine hotspots fared two years on?

reposted from : 
http://www.propertyobserver.com.au/

By Larry Schlesinger
Tuesday, 23 July 2013
Two years ago Property Observer reported that out of the collective number of '100 best suburb to buy' housing hotspots named by investment magazines Your Investment Property and Australian Property Investor, only 21  featured in  both magazines' lists. Analysis of the performance of detached houses in these 21 hotspots reveals that very few are returning anything meaningful to investors while some have seen their median values fall sharply.
There are just four locations that have delivered returns in excess of inflation (around 5% over the past two years).
Property Observer looked at the movement in medians of both RP Data and Australian Property Monitors (APM), just to also see how the two major data providers differed on the same location.
Three of them – Townsville, Gladstone and Chinchilla - are in Queensland and have strong ties to the mining sector.
The fourth is the regional city of Bathurst, around 160 kilometres from Sydney in the NSW Central Tablelands, picked for its affordability and high yields, with RP Data recording a 9.8% rise in median values and APM a 5.2% increase.
Among the worst performers over the past two years have been Melbourne locations including Broadmeadows, St Kilda and Balaclava along with Paddington in Brisbane and Kensington in Adelaide.
Most astute property investors would take a long term view on their investments – indeed some of these non-performers may turn around in the coming years.
However, many investors would expect to see signs of capital growth in so-called hotspots over a two-year period and certainly not the declines recorded in some locations as the tables below show:
Suburbs in bold have achieved capital growth in excess of 5% over the the past two years according to both RP Data and APM:
RP Data figures

Suburb
State
Median house price 2011
Median house price 2013
% change over two years
Hit or miss?
1.
Ainslie
ACT
$711,000
$687,000
-3.3%
MISS
2.
Townsville
Qld
$369,000
$555,000
+50.4%
HIT
3.
Gladstone
Qld
$439,000
$595,000
+35.5%
HIT
4.
Rockhampton
Qld
$192,000
$201,000
+4.6%
HIT
5.
Toowoomba
Qld
$270,000
$270,000
0%
MISS
6.
Chinchilla
Qld
$325,000
$370,000
+13.8%
HIT
7.
Paddington
Qld
$788,000
$745,000
-5.4%
MISS
8.
Dulwich Hill
NSW
$852,000
$850,000
0%
MISS
9.
Tempe
NSW
$713,000
$700,000
-1.8%
MISS
10.
Baulkham Hills
NSW
$621,000
$645,000
+3.8%
HIT
11.
Bathurst
NSW
$273,000
$300,000
+9.8%
HIT
12.
Port Macquarie
NSW
$400,000
$395,000
-1.24%
MISS
13.
Geraldton
WA
$360,000
$375,000
+4.1%
HIT
14.
Broadmeadows
Vic
$380,000
$315,000
-17.1%
MISS
15.
Thornbury
Vic
$718,000
$700,000
-2.5%
MISS
16.
Warrnambool
Vic
$317,000
$313,000
-1.2%
MISS
17.
St Kilda
Vic
$860,000
$707,000
-17.7%
MISS
18.
Brunswick
Vic
$689,000
$640,000
-7.1%
MISS
19.
Balaclava
Vic
$916,000
$715,000
-21.9%
MISS
20.
Port Noarlunga
SA
$365,000
$353,000
-3.2%
MISS
21.
Kensington
SA
$650,000
$595,000
-8.4%
MISS
Source: Australian Property Investor magazine, Your Investment Property magazine, RP Data
APM figures

Suburb
State
Median house price 2011
Median house price 2013
% change over two years
Hit or miss?
1.
Ainslie
ACT
$688,000
$682,000
-0.8%
MISS
2.
Townsville
Qld
$395,000
$439,000
+10.2%
HIT
3.
Gladstone
Qld
$398,000
$480,000
20.6%
HIT
4.
Rockhampton
Qld
$205,000
$196,000
-4.3%
MISS
5.
Toowoomba
Qld
$271,000
$275,000
-1.4%
MISS
6.
Chinchilla
Qld
$277,000
$377,000
36%
HIT
7.
Paddington
Qld
$754,000
$718,000
-4.7%
MISS
8.
Dulwich Hill
NSW
$820,000
$850,000
+3.65%
HIT
9.
Tempe
NSW
$710,000
$714,000
+0.5%
MISS
10.
Baulkham Hills
NSW
$606,000
$630,000
+3.9%
HIT
11.
Bathurst
NSW
$285,000
$300,000
+5.2%
HIT
12.
Port Macquarie
NSW
$392,000
$380,000
-2%
MISS
13.
Geraldton
WA
$372,000
$380,000
+2.1%
MISS
14.
Broadmeadows
Vic
$386,000
$320,000
-20.6%
MISS
15.
Thornbury
Vic
$713,000
$674,000
-5.4%
MISS
16.
Warrnambool
Vic
$310,000
$304,000
-1.9%
MISS
17.
St Kilda
Vic
$822,000
$652,000
-20.6%
MISS
18.
Brunswick
Vic
$686,000
$625,000
-8.8%
MISS
19.
Balaclava
Vic
$868,000
$715,000
-17.6%
MISS
20.
Port Noarlunga
SA
$366,000
$360,000
-1.6%
MISS
21.
Kensington
SA
$530,000
$570,000
+7.5%
HIT
Source: Australian Property Investor magazine, Your Investment Property magazine, Australian Property Monitors