According to recent research, 110 areas will be hot spots next year, with 81 of them having homes priced under $600,000.
While rural locations were the hottest places to purchase this year, a new analysis has indicated that tiny capital cities will flourish in 2023 and provide the greatest deal for home searchers.
The cities primed for a rise in home prices in 2023 have been identified in Canstar’s yearly Rising Stars Report, an analysis of the Australian real estate market.
Taking into account sales volume, price growth, vacancy rates, rental economic expansion, infrastructural expenditure, and amenities, it picked 110 property sites around the nation.
The city with the highest chances for economic capital development was Adelaide, followed by Brisbane and Perth.
According to Terry Ryder, co-producer of the Rising Stars Report and a Hotspotting property specialist, “All three sectors have been strongly recalcitrant to the downturn pressures and have profited from the quest of affordability, which has been the single most powerful theme permeating property markets all over Australia in 2022.”
Regional Queensland has slipped from second to fourth place, but the future still looks bright. It continues to gain from the trend of people moving to more inexpensive lifestyles as the country’s top receiver of population increase via internal migration.
The list included, among many other places like Bundaberg South, Caloundra, Newtown, and South Toowoomba.
Christie’s Beach, Gilles Plains, Dover Gardens, Craigmore, Elizabeth Vale, Kurralta Park, Magill, Salisbury East, Munno Para, and Seaford Meadows were among the Adelaide suburbs that received high rankings.
According to Mr Ryder, Adelaide continues to have one of Australia’s fastest and most competitive real estate markets, with properties selling swiftly at higher-than-expected prices. “Adelaide has been at the vanguard of price rise countrywide for the past two years,” he added.
It is currently the top-ranked market in Australia, up from ninth last year. It has been among the markets most resilient to recent downturn pricing pressures. Adelaide, formerly thought of as a city that couldn’t support demographic, economic, or real estate price expansion, has undergone profound economic upheaval.
“With numerous domestic and foreign enterprises established there, Sydney has proclaimed itself to be Australia’s high-tech innovation hub. It also leads the country in the field of alternative energy, and it is a city with expanding significance in the fields of education and defence. Adelaide has attracted buyers because of its relative affordability, above-average rates, and promising growth prospects.
Canstar’s editor-at-large, Effie Zahos, said that median property prices in Adelaide’s outstanding suburbs are half as high as those in comparable areas of Sydney or Melbourne.
Apartments in Annerley, Kangaroo Point, and West Point, as well as homes in Caboolture, Dakabin, Deception Bay, Eagleby, Eastern Heights, and Redbank Plains, were among Brisbane’s top 10 increasing suburbs.
Armadale, Baldivis, Brabham, Ellenbrook, Forest field, Hocking, Joondalup, Orelia, Waikiki, and Wellard were among the Perth suburbs picked out for expansion.
According to the research, New South Wales had the biggest loss in the rankings for the property growing market, both in Sydney (which went from fourth to 12th) and rural NSW (which went from first to seventh).
“The state’s economy has seen a noticeable decline at the same time. The current property bubble has made Sydney and several high-profile regional cities highly costly places to live, and it is the top-end markets that have seen a noticeable fall, according to Mr Ryder.
He did predict that there will be certain areas of development.
Campsie, Fairfield, Georges Hall, Granville, Jamisontown, Liverpool, Lurnea, Marrickville, Rooty Hill, and Westmead were among the Sydney suburbs that made the list. Other locations in the state that made the list were Armidale, Dubbo, Glen Innes, Goulburn, Muswellbrook, and more.
“Canberra, another highly pricey city for housing, fell from fifth to ninth place in the rankings. Chisholm, Dickson, Franklin, Ngunnawal, and O’Connor are notable locations in this area.
According to Mr Ryder, the greatest places to purchase are Caroline Springs, Epping, Forest Hill, Glen Waverley, Hoppers Crossing, Melton South, North Melbourne, Richmond, Roxburgh Park, and Sunbury. Melbourne slid two spots from 2022 to second-to-last in the rankings.
The island state’s rural real estate market has peaked, he said, noting that regional Tasmania came in last after a protracted boom.
Regional Tassie’s top destinations are Brighton, Devonport, Invermay, New Norfolk, and Youngtown.
According to Ms Zahos, there will likely be further rate increases in the future, and purchasers will face significant challenges in getting a mortgage.
“Banks will be accounting for a 3% reserve in addition to the need that they are capable of servicing the headline rates. The great news is that 10 of the 110 Rising Star suburbs in Canstar’s 2023 study have a median price of around $600,000 and $700,000, and 81 of them have a median price under $600,000.
“With a 20% deposit and a 30-year loan on a $600,000 house, the monthly repayments will be around $2900 if you account for the probability of three more 0.25 percentage point rate increases.”
Although Australia’s real estate market is not going to undergo the same price explosion it did in recent years, she stressed that location still mattered when making a purchase.
If you can’t pay the loan, it won’t matter if you find the ideal property in the ideal neighbourhood, she added.
“Buyers should carefully examine their future goals and if they will be able to afford repayments in the future. Affordability and the capacity of purchasers to borrow money will be impacted by rising interest rates and living expenses. Due to this, more consumers could be turned away.
“Property remains a terrific way to generate wealth over the long run, as long as you can filter out all the hype about whether or when home prices could collapse and purchase intelligently depending on location and pricing.”
