RP Data has predicted that more than 250 Australian suburbs will double in value in the next 10 years.
In RP Data’s Autumn Investors Guide to Australia, tenants in almost 800 suburbs are warned they may be set to see their weekly rent double in the same time.
The real estate data firm’s Autumn Investor Guide has revealed the nation’s top property investment prospects include 263 suburbs or towns with the potential to see 100 per cent growth in the next decade, 792 where rental growth will do likewise, and 582 suburbs where rental margins are currently are topping 5.5 per cent.
RP Data analyst Cameron Kusher said that while not all the suburbs mentioned in the report would continue on trend, those hoping to buy or who are still renting could take heart that many others would not see such dramatic growth.
“Renters in Sydney are most likely to feel the pinch if the predictions, based on growth over the past five years, come to pass.” 249 suburbs have been identified in Sydney, including Vaucluse where rent for houses has grown by about $1015 (15.3 per cent per year) in the past five years and Potts Point, where houses now rent at $377 (13.9 per cent per year) more than they did in 2008.
Report co-author and RP Data analyst Tim Lawless said the growth had been predicted on suburbs with annual growth topping 7.2 per cent. ”By using a scenario based on compounding growth calculation, the value of an asset will double in ten years if it records an annual increase of 7.2 per cent,” Mr Lawless said.
“Based on this measure we have identified 263 suburbs where values are on track to double over a ten year period and 792 where weekly rents are on track to double over ten years.”
Mr Lawless said that investors were encouraged to view the free report as a guide or starting point for investigating investment opportunities.