Savvy investors are capitalising on an incredible upswing in house prices in a tiny rural town.
The best performing suburb in Australia is Wallan, a town of 11,000 people 45km north of Melbourne, where house price values have increased 46.8 per cent in the past year.
The median price for a house in Wallan is now $533,062, according to research from property data firm CoreLogic.
Wallan’s average price has increased from $198,700 just five years ago, a jump of 63.1 per cent.
The best performing suburb in Australia is Wallan, a town of 11,000 people 45km north of Melbourne, where house price value has increased 46.8 per cent in the past year (Pictured: a Wallan property up for sale for $450,000)
The median price for a house in Wallan is now $533,062, according to research from property data firm CoreLogic (Pictured: a three-bedroom home in Wallan on the market for $450,000)
Families have been investing in the town for its closeness to the city while also having a country town feel
Families have been investing in the town for its closeness to the city while also having a country town feel.
There has been an influx of housing estates being built by developers in the area.
Wallan’s meteoric rise comes as house prices in Sydney and Melbourne continue to fall.
Four of the five best-performing suburbs in Australia are in regional Victoria, with one in Tasmania.
Suburbs in New South Wales, which had been regularly doubling in value before 2017, were mostly absent from the top 50.
Second behind Wallan was South Hobart in Tasmania, where houses have had an average price rise of 35.3 per cent.
The average house price in South Hobart is $623,094, 64.1 per cent more than it was in 2013.
Hastings on Victoria’s Mornington Peninsula had house prices increase by 33.6 per cent, followed by Cockatoo 48km south-east of Melbourne.
CoreLogic research director Tim Lawless said each suburb in the Australian top 50 had a median value increase of more than 18 per cent.
There has been an influx of housing estates being built by developers in the area (Pictured: a Wallan property being sold for $490,000)
Wallan’s meteoric rise comes as house prices in Sydney and Melbourne continue to fall
National property prices have dropped annually for the first time in six years, driven by weakening markets in Sydney and Melbourne.
The median Sydney house price fell 4.5 per cent during the year to June 2018, the largest annual decline in a decade.
Home values in some areas fell by more than ten per cent, with properties on the city’s upper north shore suffering a 12.2 per cent drop.
In Melbourne, which along with Sydney makes up two-thirds of the value in the national market, growth was the slowest since September 2012.
| Rank | Suburb | State | Year-long change | Median value | |
|---|---|---|---|---|---|
| 1 2 3 4 5 |
Wallan South Hobart Hastings Cockatoo Coolaroo |
Victoria Tasmania Victoria Victoria Victoria |
+36.8 per cent +35.3 per cent +33.6 per cent +32.6 per cent +32.2 per cent |
$533,062 $623,094 $410,955 $577,029 $479,758 |