Australian Capital City Railway Study 2013

Key Findings


Sydneys railway suburbs return higher rental yields for both house and unit due to the lower median prices for railway suburbs city-wide.
Melbournes median house price is, on average 10.9 per cent higher in railway suburbs, remarkably greater than non-railway houses.
Brisbanes Southern railway suburbs have experienced considerable growth in the housing market, inline with maintaining the most affordable median price at $459,000.
Perths Inner 10km railway suburbs experienced a positive divergence in both house and unit markets over the past two years.

Sydneys non-railway suburbs have consistently outperformed the railway localities in median price in both houses and units.
Melbournes non-railway suburbs were outperformed by railway localities, due by and large to a far greater number of sales occurring in railway localities.
Brisbanes mixture of public transport options has resulted in minimal differences recorded amongst rail and non-rail areas, though sales in railway areas have performed better than non-railway.
Non-railway suburbs in Perth have recorded a higher median price as well as a larger volume of transactions when compared to railway suburbs.

The analysis has revealed that in this low vacancy market, typically units located within railway suburbs provide better investment opportunities through stronger yields. Observing the macro trends on median price growth also shows that there is little divergence between median price growth of railway and non-railway suburbs.

Sydney- Railway suburbs provide a great investment option with an affordable median price, low vacancy rate of 1.7 per cent, and overall strong rental market. The analysis shows better yields being achieved in railway suburbs than non-railway suburbs.

Melbourne- Houses located in railway suburbs have consistently maintained a higher median price threshold (at an average 10.9 per cent) than non-railway suburbs. Currently the market is transitioning through its stock on the market, with the highest vacancy rate (at 2.7 per cent) of any capital city analysed. This has resulted in comparably lower yields for would be investors.

Brisbane- Units provide a stronger investment option in Brisbane through higher yields. It is no surprise to find the vast majority of units located within railway suburbs. Through the analysis, it was established that there was no significant price growth difference between railway and non-railway suburbs.

Perth- An extremely tight rental market has led to high yields, with unit stock just edging ahead over houses for the most appealing investment type. Through the analysis, it was established that there was no significant price growth difference between railway and non-railway suburbs.