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If you want to see how property could move in the future, it’s important to see how it moved in the past. New research takes a look at which capital city has been the best performing over the last 30 years and the reason behind their success.

Conducted by the Property Investment Professionals of Australia, the research revealed that no one capital city remained the top performer over that 30-year period, said its chairman Peter Koulizos.

“The facts prove Aussie investors and homebuyers over the past three decades have made solid returns across almost every capital city, depending on their ability to buy at the right time,” he said.

Going as far back to the period of 1988 to 1992, Brisbane was the top performing capital city, with house prices nearly doubling at 99 per cent.

“These owners saw the value of their asset double in less than half a decade, yet between 1993 and 1997, Brisbane was the county’s second-worst performing market,” Mr Koulizos said.

During this next period, Darwin was the top performer, with house prices rising by more than half at 56.5 per cent.

The next period, 1998 to 2002, Darwin plummeted to the worst performer, while Melbourne took out the top spot with house prices rising by 88.2 per cent.

Then from 2003 to 2007, Melbourne was the second worst performing capital city and Sydney was the worst, while Perthwas the top performer at a rise of 139.8 per cent.

“Of course, if you backed your judgment and bought in Sydney any time after 2007, you’d be very happy with your decision now,” Mr Koulizos added.

Darwin was once again the highest growing capital city for 2008 to 2012 with a percentage rise of 36.8 per cent; however, from 2013 to 2017, it was the worst performing capital city, declining by 10.5 per cent, while Sydney took out the top position with a percentage increase of 74.6 per cent.

Trying to determine a market that will see success in the next cycle is difficult, but other than investing into a property for the long term, it is the only way to see significant profit.

“Of course, many buyers don’t have access to the information or experience needed to monitor and predict property cycles,” he said.

“Investors should seek independent qualified property investment advice to give themselves the best chance of getting the best returns on their money, as timing the property market can be just as important as time in the market.


Sasha Karen, Smart Property Investment, 20 August 2018