Prices across some suburbs in Australia’s capital cities have been growing by the equivalent of the price of hundreds of ‘smashed avocados’ in the 12 months to November 2016, according to recent analysis by comparison website finder.com.au.
Taking into account the average cost of avocados, comparison website finder.com.au examined recent CoreLogic property price data to rank price growth across suburbs in each of Australia’s capital cities according to a ‘Smashed Avocado Index’.
The development of this index comes after controversial comments from social commentator Bernard Salt about “hipsters” spending money on eating “smashed avocado” instead of homes, which last year gave non-major bank ME’s home loan campaign a 500 per cent boost in website hits.
At the time, Mr Salt wrote a column for The Weekend Australian Magazine, in which he suggested that young people can’t afford home because they are spending their money on “smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop and more”.
Finder.com.au’s ‘Smashed Avocado Index’ reveals the significant capital growth in some Australian cities and suburbs over the 12 months to November 2016.
The comparison website highlighted that for example the purchase of a unit in Point Piper would have netted a gain of $950,000 during the period, which is the highest gain of any suburb in Australia.
“If you were to take that budget to breakfast, it would buy you 43,182 smashed avocados a year valued at $22 each – or 118 per day. That’s a lot of guacamole!” the website said.
Finder.com.au insights manager Graham Cooke pointed out that a capital gain of $80,000 “isn’t too dissimilar” from the average wage around the nation.
“Those people living in these suburbs have truly hit the jackpot seeing their property prices grow over 40 per cent in just a year,” he said. “To think that you could earn enough on your property in just a year to buy a whole house outright just goes to show how hot this property market really is in some areas.”
Breaking the results down by state, Point Piper in NSW had the highest ‘Smashed Avocado’ index of 118.
This was followed by Teneriffe in Queensland at 53; then Hawthorn, Victoria with 50; Forrest, ACT (49); Swanbourne, WA (39); Netherby, SA (33); Hawley Beach, TAS (19) and Cossack, NT (17).