Sydney's Pemulwuy follows Gordon as suburb with best growth prospects: Residex report
Pemulwuy, a western Sydney suburb named after an Aboriginal warrior, is a high second on the list of suburbs predicted to grow most in the next eight years by a research report.
The Residex Predictions Report ranks the top 109 suburbs where predicted capital growth is forecast to be between an average of 4.0 percent and 11.1 percent per annum over the next five years, and between an average of 5.1 percent and 8.4 percent per annum over the next eight years.
The report is a valuable starting point for property investors researching where to buy next.
House values in Pemulwuy (postcode 2145) are expected to provide an average of 8.34 percent growth per year over the next eight years, according to the report. It ranks behind Gordon in the ACT where house values are predicted to grow by an average of 8.4% per year till 2025.
Tim Lawless, CoreLogic’s Asia Pacific research director said the suburbs listed in the report are the ones that we would expect to perform well in future years based purely upon the statistical patterns that the Residex algorithm has identified in their historical growth rates.
“Residex’s predictive model doesn’t allow for new developments, changing demographic patterns, improved infrastructure or any other such factors and these can have a substantial impact on the capital gain prospects across a suburb or town,” he said.
The December report is the first Predictions Report compiled by Residex since the business was purchased by CoreLogic in 2016, and uses the combined data resources of the two businesses.
The data is drawn from median values using the CoreLogic automated valuation model, rather than median sales prices. This is an important distinction as it takes into account the value of all properties within the suburb, not just those that have transacted across the period. This makes it a more reliable and stable indicator of values across the region.
The median value of houses in Pemulwuy was $914,000 as at October 2016, with an annual average growth of 8.22 percent, according to CoreLogic data.
Around the median price, some of the houses recently sold or on the market were:
A four-bedroom house at 7 Cummings Avenue, Pemulwuy, (below) NSW 2145, which is on the market with a price guide of $899,000.
Another four-bedroom house at 23 Bulbi Street, Pemulwuy, NSW 2145 has been listed for $980,000.
Besides the ones on the market, some houses that recently changed hands include a four-bedroom house at 36 Bulbi St, Pemulwuy, NSW 2145 that sold for $930,000 in November 2016. The selling agency was Riverbank Real Estate.
Another sale was that of a four-bedroom house at 19 Stanbury Ave, Pemulwuy, NSW 2145 for $915,000 in September 2016. This too was sold through Riverbank.
In the national report, 107 suburbs had top predictions for houses while there were two suburbs for units. Across the country, 60 of the top 109 suburbs were in regional Australia and 49 were in city areas.
Broken down by state, 16 were in the ACT, 39 suburbs were within NSW, 15 were in Queensland, there was 1 from SA, 13 from Tasmania, 6 from Victoria and 19 from WA. Separate reports are also available for Victoria, NSW and Queensland.
Lawless said the report was not definitive and other suburbs could also perform strongly. Investors should conduct their own additional research before deciding to commit to a purchase.
“As with any forward looking analytic, the reports are predictions, not a guarantee of future growth, and taking into consideration your own personal circumstances is vital,” Mr Lawless said.
Get your full copy of the Residex Predictions Report here for $195 per state or $250 for the national report.
