98% of Australia’s suburbs have increased in value this century

The value of property across Australia has largely weathered the effect of inflation since the start of this century, showing strong capital growth in the past two decades, Mozo’s recent research has shown.

The ACT came out on top with the highest average capital growth during this century. All of its suburbs gained value, while Tasmania was at the bottom of the pile, with nearly 6 out of 10 suburbs losing value during the same period.

The results showed that despite inflation, many Australian suburbs have seen strong capital growth, said Mozo Director Kirsty Lamont.

“Broadly speaking, real estate has been a sound investment across the mainland with 98 per cent of Australia’s suburbs recording gains in value and average capital growth of 6.43 per cent,” she said.

To beat inflation, suburbs needed to show a capital value growth of at least 2.49% since the turn of the century. The ACT easily knocked out that goal, with an average growth of 7.16%, while Tasmania fell short, with an average 2.36% growth rate.

In recent years homeowners have also benefited not only from property appreciation, but from the added benefit of record low interest rates. And with the Reserve Bank tipped to reduce rates yet again at its August board meeting tomorrow, Aussie property hopefuls are in luck for finding a great deal.

In fact, our home loan repayments calculator shows that a 25 basis point reduction on the current average 4.51% interest rate would save a homeowner $21,153 on a $500,000 home loan, over a 25 year term.

Of the 93 suburbs across Australia that failed to increase in value, 89 were in Tasmania. Greater Hobart’s Cambridge residents faced the largest drop in value - equating to an average of around $320,000.

NSW, on the other hand, while ranked fifth for capital growth by percentage, boasted 9 of the 10 suburbs that increased the most in dollar value.

“Darling Point property owners will be charging the champagne flutes after making the biggest increase in dollar value, with a staggering average increase of $3.43 million over the last 20 years,” said Lamont.

Top 10 suburbs by dollar value increase

SuburbStateAverage increase in house price (after inflation)
1. Darling PointNSW$3,433,520
2. Whale BeachNSW$2,702,693
3. Bellevue HillNSW$2,683,463
4. Lavender BayNSW$2,656,776
5. ToorakVIC$2,579,124
6. Centennial ParkNSW$2,518,150
7. VaucluseNSW$2,400,858
8. TamaramaNSW$2,358,719
9. Cremorne PointNSW$2,316,090
10. Kurraba PointNSW$2,267,471

The Northern Territory performed much better in terms of capital growth by percentage, claiming 5 spots in the top 10, with an average growth of over 12%.

SuburbStateCapital growth over last 20 years
1. BerrinbaQLD14.71%
2. RoseberyNT13.90%
3. BakewellNT13.15%
4. ZuccoliNT12.66%
5. WollertVIC12.57%
6. JohnstonNT12.48%
7. DurackNT12.27%
8. DampierWA12.25%
9. DaytonWA12.18%
10. South BowenfelsNSW12.17%

Now that you know the best places to do it, are you ready to invest in a property of your own? Check out our home loan comparison page to find a great deal and make it happen.