Bundy top property performer over past 25 years
THE beachside suburb of Bargara is surging ahead, with growth in median apartment prices outstripping regions further to our south.
The news comes after the release of a joint study by Aussie Homes Loans and CoreLogic, which analysed data from the past 25 years.
The report, 25 Years of Housing Trends, found the median unit price in Bargara in the early 1990s sat at $82,750.
Fast-forward to now and that figure has jumped to a median of $415,000, representing a growth of 6.7 per cent annually.
Bargara's growth was closely followed by Gooburrum, which lifted its median house price from $91,000 to $427,000, or 6.4 per cent annually.
These performances compare with Brisbane's average house and unit increases of 5.9 per cent and 4.5 per cent respectively.
The landmark report, which lists the top 20 suburbs in the Wide Bay-Burnett region for value growth, puts the Bundaberg region well ahead of the Fraser Coast and Gympie housing markets, with seven mentions in the top 10.
Aussie Home Loans CEO James Symond said the report showed housing to be a bankable market, if you could afford it.
"Our report clearly shows that housing continues to grow as Australia's largest asset class,” he said.
"Queensland's average owner-occupier loan size has increased approximately in line with property values, with the typical loan size now $341,700 or 6.1 per cent per annum higher since 1993.
"With average mortgage rates currently close to their record low levels of the 1960s, loan serviceability levels have improved but housing affordability remains a major challenge.”
Mr Symond also pointed to a discrepancy in household income and property prices.
"Household incomes haven't kept pace with rising property prices. This is demonstrated by Queensland's shrinking first home buyer numbers from 22.2 per cent in 1993 to 18.3 per cent in 2018, while investors have taken a bigger slice of the pie, up from 28.7 per cent to 34.2 per cent over the same period,” he said.
"The last 25 years has seen five property cycles and we expect the pattern of cyclic growth to continue. Suburbs where population and jobs growth continues apace are expected to dominate the top performers over the next 25 years.”
The report also found if home values increased at the same annual rate as they have over the past 25 years, there will be a median dwelling value nationally of $2.9 million by the year 2043.