Research out today from CoreLogic on the best performing council areas at the top and bottom end for median house price growth showed that Sydney and Melbourne as the two top performers over the past two decades.
While the data shows a strong growth rate, the results varied dramatically between the states and territories and within different regions.
Over the 20 years to December 2016, median selling prices of houses nationally have increased at a compound annual rate of 7.2%.
This indicates that on average, property prices have doubled over ten years.
Note: This research highlights the 25 council areas across the country that have seen the greatest compound annual increase in median house prices over the past 20 years. Note that data for the Northern Territory is not available for 20 years and as a result has been excluded from the analysis.
Best Performers Snapshot (More in the adjacent Top 25 List)
• Murrumbidgee council area in the New South Wales Riverina – over the past 20 years the median price jumped by 13.0% per annum
• Isaac, in the coal mining heartland of Queensland’s Bowen Basin is in second place & with an interesting result given 3-4 years ago house prices were substantially higher due to the mining boom, however, they have fallen by -22.4% pa over the past five years as the mining boom has unwound.
Top 25 council areas for median house price increases, 20 years to Dec-16
Elsewhere on the top 25 list; New South Wales and Victorian council areas feature heavily, especially those located within Sydney and Melbourne.
The council area results highlight the strong increases in prices in Sydney and Melbourne which have outstripped those of the rest of the country.
In Sydney in particular, this has occurred despite the fact that prices generally fell between 2003 and 2009.
In contrast, the research also shows the 25 council areas nationally that have seen the lowest annual increases in median house prices over the past 25 years.
Not one of these council areas is situated in a capital city, highlighting that there is often a divide between the performance of capital city and regional housing markets.
Of interest is that most of these council areas are in regional areas linked to single industries such as mining or agriculture.
The past, of course, is no indicator of future performance, but the data provides a good insight into the areas which are likely to see stronger price growth in the future.
Bottom 25 council areas for median house price increases, 20 years to Dec-16
Regions with diverse economies and not reliant on single or a handful of industries are likely to see higher levels of housing demand.
Subsequently, these areas also tend to see greater increases in selling prices due to the heightened level of housing demand.