Why Outer Suburbs Are Outperforming: LongView’s Insights on Land Value and Growth

In this follow-up Australian Financial Review article, Michael Bleby speaks with LongView CEO Evan Thornley about why certain outer suburbs in Sydney, Melbourne and Brisbane are outpacing inner-city areas for capital growth. 

Thornley highlights that older homes on large blocks near public transport, employment hubs and activity centres are seeing rapid value growth because the land beneath them holds more potential than the dwelling itself. 

“There’s this mythology that all the best capital growth is within 15 kilometres of the CBD,” Thornley says. “But from a pure capital growth point of view, some houses further out have outperformed even blue-chip suburbs.” 

LongView’s proprietary index of Robust Older Dwellings on Well-Located Land (RODWELLs) shows these homes rose 7 per cent in Sydney last year, more than double the citywide average. Melbourne saw a 6 per cent gain compared to the overall 1.6 per cent increase, and in Brisbane, they jumped 8.2 per cent against the city’s 7 per cent rise. 

This trend underscores the importance of intelligent asset selection. As LongView’s fund co-invests with buyers in these areas, it captures the upside of land appreciation while contributing to housing supply solutions. 

Property Index Performance