Are these Australia’s most overheated markets?

By MoneyQuest posted on May 02, 2014

Whether you believe there’s a price bubble or not, there’s no denying that some markets are surging way too fast beyond their fundamentals.

Some might call this speculative buying. Others may see it as pent-up demand simply catching up. But if the statistics are to be believed, some markets are indeed in danger of overheating.

The list below, compiled from the recent statistics from RP Data, shows that many suburbs in NSW, particularly around Sydney, have already surged beyond sustainable levels during the past 12 months. The recent quarterly performance indicates that the bullish buying continues unabated.

While it’s great news for investors looking to cash out, it’s looking grim for those who want to get in. Buying into these suburbs at these levels means you’re already buying at the top of the market and are likely to pay a premium. This exposes you to unnecessary risks down the line.

Overheated markets?

State	Suburb	Type	Number Sold	Median Price	Quarterly Growth	12 month Growth	Time on Market (days)	Average distance to CBD (km)
NSW	BIRCHGROVE	U	22	$957,500	21%	47%	n.a	3
NSW	MATCHAM	H	25	$1,189,000	13%	43%	89	55
NSW	PLUMPTON	U	42	$403,000	28%	41%	56	19
NSW	BELLA VISTA	U	15	$425,000	25%	41%	n.a	28
NSW	BRIGHTON-LE-SANDS	H	41	$1,115,000	17%	33%	n.a	10
NSW	ERINA	H	69	$560,000	8%	32%	69	51
NSW	COLLAROY PLATEAU	H	59	$1,100,000	9%	26%	71	17
NSW	EPPING	H	267	$1,191,000	8%	25%	67	16
NSW	WEST WOLLONGONG	U	39	$310,000	27%	25%	70	67
NSW	GOULBURN	U	37	$229,000	10%	25%	82	154
NSW	GLEBE	H	88	$1,187,500	8%	25%	67	2
NSW	ST JOHNS PARK	H	40	$553,000	9%	25%	91	28
NSW	CENTENNIAL PARK	U	46	$555,000	8%	25%	50	3
NSW	HOMEBUSH	H	34	$1,176,000	7%	24%	n.a	12
NSW	TREGEAR	H	48	$286,000	8%	24%	40	41
NSW	RIVERSTONE	H	123	$515,000	7%	24%	47	38
NSW	CHURCH POINT	H	19	$1,425,000	7%	24%	129	25
NSW	TASCOTT	H	58	$445,000	9%	24%	56	47
NSW	NORTH STRATHFIELD	H	22	$ 1,110,500	5%	23%	n.a	11
NSW	TELOPEA	U	44	$557,500	13%	23%	23	18
NSW	TOONGABBIE	U	149	$465,000	4%	23%	51	23
NSW	GRANVILLE	H	151	$536,500	9%	22%	61	18
NSW	EASTWOOD	H	202	$1,132,500	10%	22%	72	14
NSW	RICHMOND	H	76	$458,500	7%	22%	84	64
NSW	PYMBLE	H	205	$1,500,000	6%	22%	95	15
NSW	REDHEAD	H	36	$767,000	15%	22%	78	106
NSW	CABRAMATTA	H	112	$572,000	8%	22%	77	26
NSW	BALMAIN EAST	H	32	$1,960,000	21%	22%	77	2
NSW	SEAFORTH	U	17	$909,000	17%	21%	80	9
NSW	MIDDLETON GRANGE	H	100	$536,000	9%	21%	52	31
NSW	LEWISHAM	H	36	$1,000,000	11%	21%	47	6
NSW	BRADBURY	U	20	$276,000	17%	21%	60	42
NSW	DRUMMOYNE	U	145	$810,000	6%	21%	70	5
QLD	GUMDALE	H	34	$870,000	20%	46%	104	13
QLD	SUNSHINE BEACH	H	49	$1,025,000	11%	39%	104	118
QLD	WYNNUM WEST	U	106	$354,500	6%	29%	84	6
QLD	HAWTHORNE	H	101	$962,500	5%	27%	67	3
QLD	MERRIMAC	U	114	$380,000	15%	25%	86	56
SA	GLENGOWRIE	U	49	$492,500	21%	48%	96	9
SA	MORPHETTVILLE	U	39	$357,797	13%	30%	55	9
SA	UNLEY	H	51	$916,000	13%	30%	70	3
SA	MAYLANDS	H	22	$776,000	19%	27%	n.a	4
SA	BIRKENHEAD	H	31	$360,000	6%	26%	93	14
SA	KENSINGTON PARK	U	19	$405,000	7%	24%	65	5
SA	TOORAK GARDENS	H	38	$1,260,000	14%	24%	104	4
SA	EXETER	H	22	$465,000	13%	22%	83	14
SA	LINDEN PARK	H	27	$720,000	8%	22%	84	5
SA	WAYVILLE	U	35	$480,000	30%	22%	72	2
SA	GOODWOOD	U	22	$479,000	7%	21%	82	3
VIC	QUARRY HILL	H	54	$388,500	6%	30%	57	130
VIC	PRINCES HILL	H	20	$1,216,250	11%	29%	n.a	3
VIC	GOWANBRAE	H	35	$600,000	9%	29%	80	13
VIC	WEST MELBOURNE	H	44	$770,000	27%	27%	110	1
VIC	MONT ALBERT NORTH	H	77	$980,000	5%	26%	108	13
VIC	BALWYN NORTH	H	343	$1,232,500	5%	24%	87	11
VIC	BALWYN NORTH	U	51	$728,000	6%	24%	53	12
VIC	KEW EAST	H	71	$1,240,000	8%	23%	99	8
VIC	BALACLAVA	H	36	$867,500	6%	23%	68	7
WA	ROSSMOYNE	H	46	$1,100,000	6%	25%	120	10
WA	EAST CANNINGTON	H	111	$530,000	7%	23%	53	11

Disclaimer:

This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.

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Are these Australia’s most overheated markets?