10 year average annual growth rate

I'd be interested to understand peoples thoughts on the data point of 10 year average annual growth rate, and predictor of future returns.

I have heard some commentators suggest that signifies a consistently performing area and a good investment e.g. Houses in Bondi Junction NSW:
10.18% according to BONDI JUNCTION NSW, AU SUBURB PROFILE - FREE REPORT

Conversely, I've heard other commentators suggest that they deliberately seek a low 10 year average annual growth rate, and look for new infrastructure or capital growth drivers that could make the next 10 years flourish for the area.

Whats YOUR experience?

 

They are not mutually exclusive.
Prior growth is obviously a good indicator of a suburbs desirability. If a suburb has shown a consistent 10 year trend then they are probably a safer long term bet.

Getting more proactive and looking for developments that change a locations desirability is ofcourse a great strategy.

I however wouldn’t have one without the other because then your really just speculating.
Say you have a suburb that has had an annual 10 year growth of 1% but they are now getting a hospital.
Purchasing in this area based upon a hospital is really a gamble that it will make the suburb more desirable. Reality is your guessing.

Likewise I wouldn’t purchase just on growth numbers as your risking catching the end of the growth before it becomes stagnate.

I would prefer to look for a solid trend of growth with upcoming projects. That to me is the sweet spot.

 

Solid response- cheers. I appreciate the prioritising future capital growth driving projects pipeline > than backwards facing indicators like the past 10 years.

 

Go back 10 years ago virtually every suburb in Perth had a 10 year growth rate at over 12%.
But it was never sustainable.

 

I deliberately go for places that have underperformed for the last 10 years . It's worked for me . It's my first filter . Obviously I'd be ignoring mining towns with low rates of growth ....

So far I've bought in capital cities ( Sydney , Brisbane & Hobart ) , Rockhampton , Townsville and Launceston. I'd probably be happy to buy in major Regionals in NSW , Vic and Q'Land ) , but if I'm buying in a regional I like somewhere that has a more diversified economy . Looking at a couple of other regionals at the moment .

Cliff