Outer city suburbs are outperforming inner city locations when it comes to capital growth, RP Data says.
According to an analysis by the valuer of value growth in statistical sub divisions (SSDs) across the nation’s capital city markets, several suburbs in outer capital city ‘mortgage belts’ are recording stronger growth than those inner city locations.
Over the 12 months to February 2009 across Sydney, Melbourne, Brisbane, Adelaide and Perth, 40 of the 51 statistical sub divisions (SSDs) evaluated recorded value falls, with exclusive suburbs witnessing the greatest value declines.
Boroondara City in Melbourne was the SSD with the greatest value falls (17.4 per cent), an area home to exclusive suburbs such as Kew, Canterbury and Hawthorn.
In contrast Western Sydney’s Fairfield-Liverpool SSD and Melbourne’s Melton-Wyndham SSD on the western outskirts recorded value growth of close to 5 per cent.
RP Data research analyst Cameron Kusher said these areas performing well had traditionally seen falling prices or lower rates of growth in recent years.
“This is an interesting shift in market conditions and performance. For the first time on record we’re seeing a surge in performance at the lower end while properties at the top end continue to show lacklustre performance.”
Mr Kusher said he expected weakness to continue in the top end markets as the financial crisis unraveled. He predicts well-located, affordable properties to be the best performers during 2009.
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