The western NSW town of Coonamble has been named in a list of “bulletproof” suburbs that appear to be “immune to drops in house prices”, regardless of market conditions.Source: The Daily Liberal
A western NSW town has been named in a list of “bulletproof” suburbs that appear to be “immune to drops in house prices”, regardless of market conditions.
Coonamble has made the list in an article titled 152 Bulletproof Suburbs Revealed, to be published in the August edition of Australian Property Investor Magazine.
Data compiled and analysed by research house Residex showed 152 suburbs or towns across Australia that ended each calendar year in the past 10 years with a positive median price “despite market booms and busts, the Global Financial Crisis and shifts in supply and demand”.
According to the report, Coonamble houses had a median value of $115,000 and commanded a median rent of $200.
The gross rent yield was 9.0 per cent and the 10-year growth per annum was 6.0 per cent.
Residex founder and consultant John Edwards said several qualities could contribute to an area’s resilience.
“Primarily, it’s all about cost and the suburb’s affordability with respect to income levels,” he said.
“Secondly, a bulletproof suburb will be found in places where the economy is diversified, or if the area is based on a single economic driver, that the industry itself is bulletproof.”
The data suggested that regional towns had a tendency to be more stable in the long run than capital city markets.
“However, they don’t have a tendency to have any pronounced growth cycle, hence they’re less susceptible to value loss and generally have stable growth at a little above inflation,” Mr Edwards said.