The 16 Aussie towns where house prices have soared 700pc

Homeowners who were savvy enough to buy in 16 locations across the country 25 years ago have made a motza — with prices rocketing more than 700 per cent.

New analysis by Propertyology has run the numbers using data stretching back to the year 2001 and identified two capital cities and 14 regional locations where investing in residential property has paid off the most.

Over the past quarter of a century, the 16 locations where the median house price increased by 700 per cent or more were led by the Queensland mining town of Moranbah, where the median house value has risen from $35,000 to $340,000 — a jump of 970 per cent.

This house at 139 Alkira Ave, Cessnock, recently sold for $615,000.

---

This house at 114 Balfour St, Launceston, recently sold for $860,000.

---

Cessnock, Byron Bay, and Noosa were the next best performers, with 880 per cent, 845 per cent, and 800 per cent growth, respectively.

Tweed and Bega in NSW recorded growth of 780 per cent, while Launceston, Newcastle, and the Fraser Coast region were not far behind with average house price growth of about 750 per cent.

MORE: The shock tactic LSKD founder used to get first home loan

Rapper Example shows off backyard makeover with new fiancee

The only two capital cities to record growth above 700 per cent were Brisbane (760 per cent) and Hobart (700 per cent).

In fact, the analysis found every location experienced significant growth in house prices in the past 25 years — even the five worst performing townships of Mount Isa (250 per cent), Kalgoorlie (300 per cent), Alice Springs (320 per cent), Broome (395 per cent) and Karratha (400 per cent).

Propertyology head of research Simon Pressley said the wealth of seven out of every 10 Australian households was “vastly better” from the average value of their house increasing by 560 per cent over the last quarter of a century.

Interestingly, capital growth of 540 per cent in Sydney’s property market was slightly below the 560 per cent national average, while Melbourne (485 per cent) was further down the list.

Simon Pressley, founder and head of research at Propertyology. Image supplied.

---

But Mr Pressley said he did not encourage anyone to make a decision as big as investing in real estate by simplying looking at a statistical rate of growth over a period of time.

“There are some cities among that…list that do not satisfy the risk matrix that Propertyology adheres to, and there are other cities on that list that we have invested in at various times,” Mr Pressley said.

“The purpose of us looking back in time is to deepen the level of knowledge and understanding. We acquire evidence to appreciate the umpteen factors that influence growth, as well as the very tangible factors which we can define risk by. Studies like this helps us to know what to focus on when making important decisions about the future.

This house at 26 Leaward Blvd, Pialba, recently sold for $1m.

---

“As for the next 25 years, it is entirely possible that many of Australia’s 400-plus townships could produce growth of 700 per cent or more. No one has a crystal ball. But I guarantee that every city will (again) have some lean periods and some extremely prosperous periods, primarily influenced by whatever each city’s economy does each year.”

Mr Pressley also used the analysis to look back at government policy and building records over the past quarter of a century.

“Despite the daily rhetoric with plans to do this-and-that for housing supply, the total volume of new housing funded by all levels of government over the last 25 years was a piddly 105,000 dwellings — or just 2.3 per cent of national building approvals,” Mr Pressley said.

This house at 72 Furness Dr, Tewantin, in the Noosa region, recently sold for $1.105m. It had previously been purchased in 2001 for $199,500.

---

“During the first year of the last 25 years, buyers were taxed $6 billion in stamp duty charges on real estate conveyances. The size of that ‘mobility restriction tax’ progressively increased to an estimated $30 billion in 2025.

“Moreover, capital gains tax (CGT) and land taxes — both of which are payable only by property investors — increased from $9 billion in 2001 to approximately $50 billion in 2025.”

It comes amid growing pressure from unions for the federal government to halve the CGT discount from 50 per cent to 25 per cent for multiple investment property owners and to restrict access to negative gearing to one investment property.

This house at 15 Marvell St, Byron Bay, recently sold for $8.7m. In 1999, it sold for $450,000.

---

The latest ABS building approval figures for December show national total dwelling approvals fell 14.9 per cent in seasonally adjusted terms to 15,542.

MORE: Inside the insane penthouse billion-dollar tech boss is now selling

‘Everything’s going up except our wages’: Frontline workers face impossible choice

Institute of Public Affairs senior fellow Kevin You said the data reflected the failure of the National Housing Accord.

“Today, governments are approving fewer homes than they were a decade ago, despite Australia’s population being 15 per cent higher,” Dr You said.

“The National Housing Accord is one of the greatest policy failures of the past 25 years. At a time when demand for housing has been ramped up off the back of the rapid, mass migration-fuelled population increase, not enough has been done by governments to help lift supply.”