not-for-sale-sign-australian-house-feature
Image: Canva.
  • No WA or NT suburbs made the list
  • Half of the suburbs came from New South Wales
  • Research considers the top 20 undersupplied suburbs

Headline puffery aside, while it is not completely impossible to purchase a property in some of these suburbs, it is still a challenge.

To do the research commissioned by HOOD.ai a bit more justice, the topic being addressed is more accurately described as the top 20 undersupplied housing markets in Australia.

Each of these twenty suburbs has under a month’s worth of inventory left.

What is inventory? It means that, if houses continue to sell at the current rate, how long will it take for there to be no houses left on the market.

HOOD.ai also noted that “When inventory levels are so low, the data can be very volatile,” as such, ‘under one month’ is used in lieu of a specific number.

Top 20 undersupplied house markets

  1. North Sydney, 2060
  2. Dapto, 2530
  3. Belmont, 3216
  4. Highton, 3216
  5. Conder, 2906
  6. Fairy Meadow, 2519
  7. Menai, 2234
  8. Evatt, 2617
  9. Stanmore, 2048
  10. Corrimal, 2518
  11. Amaroo, 2914
  12. Freshwater, 2096
  13. Kambah, 2902
  14. Collaroy, 2097
  15. Croydon Hills, 3136
  16. Cromer, 2099
  17. Bangor, 2234
  18. Largs Bay, 5016
  19. Salisbury Heights, 5109
  20. Flagstaff Hill, 5159

How have things changed?

The aforementioned HOOD.ai commissioned research found that inventory actually fell over the past year for 13 of the 20 markets in the above list. The remained under one month.

The company also said: “14 of the 20 markets are tightly held, with stock turnover levels at 4.8% to less.”

HOOD.ai CEO and founder Tommy Fraser explained the drivers of the situation:

“Part of the reason Australia has been experiencing a property boom is because stock levels have been low, which has forced buyers to compete harder and bid up prices.”

Tommy Fraser, HOOD.ai CEO and founder

“That story has really played out in these 20 suburbs, where inventory levels have been
incredibly low over the past year. As a result, the median house price of most of these
suburbs has experienced a double-digit percentage increase over the past year.

“Buyers desperately need new stock to come onto the market in all these suburbs, because, right now, they’re in a terrible bind. When a house comes onto the market, do they offer a fair price and risk missing out? Or do they do whatever it takes to win the property but overpay?”

The details

HOOD.ai’s data provided the following additional insights into markets:

Rank State Suburb Postcode Inventory level March 2022 Inventory level March 2021 Median price
1 NSW North Sydney 2060 Under 1 month* 1.3 months $2,400,000
2 NSW Dapto 2530 Under 1 month* Under 1 month* $737,000
3 VIC Belmont 3216 Under 1 month* 1.6 months $735,000
4 VIC Highton 3216 Under 1 month* 1.3 months $861,000
5 ACT Conder 2906 Under 1 month* Under 1 month* $880,000
6 NSW Fairy Meadow 2519 Under 1 month* 1.7 months $1,150,000
7 NSW Menai 2234 Under 1 month* Under 1 month* $1,405,000
8 ACT Evatt 2617 Under 1 month* 1.1 months $905,000
9 NSW Stanmore 2048 Under 1 month* 2.5 months $2,150,000
10 NSW Corrimal 2518 Under 1 month* 1.2 months $1,150,000
11 ACT Amaroo 2914 Under 1 month* 1.7 months $915,000
12 NSW Freshwater 2096 Under 1 month* 1.1 months $3,250,000
13 ACT Kambah 2902 Under 1 month* Under 1 month* $880,000
14 NSW Collaroy 2097 Under 1 month* Under 1 month* $3,750,000
15 VIC Croydon Hills 3136 Under 1 month* Under 1 month* $1,060,000
16 NSW Cromer 2099 Under 1 month* Under 1 month* $2,365,000
17 NSW Bangor 2234 Under 1 month* 1.1 months $1,510,000
18 SA Largs Bay 5016 Under 1 month* 2.2 months $696,000
19 SA Salisbury Heights 5109 Under 1 month* 2.9 months $515,199
20 SA Flagstaff Hill 5159 Under 1 month* 1.9 months $653,500

Final notes on the data

HOOD.ai said the research data sets initially considered all Australian suburbs subsequently filtering out suburbs that were more than 100 kilometres from a capital city, excluded suburbs with fewer than 1,500 houses or 0 property listings, and finally filtered out suburbs if it had more than 0.05% of houses currently listed for sale and their SA3 had an inventory level of more than 3 months.

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