Top 20 worst suburbs
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  • Although there are bargains to be found, not all are created equal
  • Adelaide is the top city of the 14 jurisdictions assessed, despite being in ninth place last year
  • Regional NSW has fallen from first place to seventh place

With the property market expected to continue its decline into next year, 2023 is expected to present many bargains for buyers.

However, not all bargains are equal, according to Canstar’s latest Rising Stars Report, which is powered by Hotspotting.

The report noted that an affordable home in the right location can make all the difference. Rather than looking at past indicators of markets that have been successful, this report looks to indicators that are forward-thinking to provide a look into markets expected to receive price growth in 2023.

Effie Zaho, Canstar’s Editor at Large, noted that the property market in Australia is unlikely to witness the rapid growth in prices that have been seen over the past few years.

“Bargains may be just around the corner with some forecasts predicting price drops of up to 20 per cent. But not all bargains will get you the same gains,” she said.

“Whether you plan to wait a while to buy and hopefully snap up a bargain or you’re ready to jump into the market now, the number one rule when it comes to buying property hasn’t changed. You’ve got to get your location right.”

Effie Zaho, Canstar

To assist with this research, Canstar has partnered with Hotspotting founder and property expert Terry Ryder to assess the top property spots in the country.

The Rising Stars Report identifies 110 promising property locations across Australia and is based on a variety of factors such as sales volumes, price growth, vacancy rates and rental growth, plus infrastructure amenities and spending.

Ms Zahos did note that given rising interest rates, buyers also need to factor in affordability.

“Shopping for the perfect house in the perfect street won’t matter if you can’t afford the loan. Buyers must carefully consider their future plans and if they can still reasonably make repayments,” said Ms Zahos.

“Rising interest rates and living costs will be impacting affordability and the borrowing power of buyers. This could see more buyers locked out.

“CoreLogic’s latest property data already shows six consecutive months of property price falls as buyers retreat. With less competition in the market prices in some areas could fall further.

“If you can block out all the noise around whether or when house prices might fall and buy well based on location and affordability, property is still a great way to build wealth over the long term.”

It should be noted that there has been quite a shake-up in this year’s ranking.

Last year, regional locations dominated the top three locations in which to buy. This year, it is the smaller capitals that have shined.

Adelaide ranks as the best city and region to buy in for 2023, with the best prospects for future capital growth of the 14 jurisdictions that have been assessed. The South Australian capital is followed by Brisbane and Perth.

“All three markets have been strongly resistant to the downturn pressures and have benefited from the pursuit of affordability, which is the strongest theme pervading property markets across Australia in 2022,” said Mr Ryder.

“Regional Queensland has dropped slightly from second to fourth but the outlook is still promising. As the nation’s leading recipient of population growth from internal migration, it continues to benefit from the ‘Exodus to Affordable Lifestyle’ trend. Places like Bundaberg South, Caloundra, Newtown and South Toowoomba made the list among others.”

The sharpest declines

The report found that the sharpest declines across the property markets have been in New South Wales. Sydney has fallen from fourth place to twelfth, with regional NSW falling from first to seventh place.

“This has coincided with a notable drop-off in the state’s economy,” continued Mr Ryder.

“Sydney and many of the high-profile regional markets have become very expensive locations for housing in the recent boom and it is the top-end markets that have declined noticeably.”

Suburbs that do make the list for Sydney include Campsie, Fairfield, Georges Hall, Granville, Jamisontown, Liverpool, Lurnea, Marrickville, Rooty Hill and Westmead.

Regional locations included Armidale, Dubbo, Glen Innes, Goulburn and Muswellbrook.

Canberra is a city that has dropped from fifth to ninth place. Suburbs in Canberra making the list include Chisholm, Dickson, Franklin, Ngunnawal and O’Connor.

Melbourne is 13th of the 14th areas. Areas standing out include Caroline Springs, Epping,  Forest Hill, Glen Waverley, Hoppers Crossing, Melton South, North Melbourne, Richmond, Roxburgh Park and Sunbury.

“In last place is Regional Tasmania, which after a prolonged boom, the regional property market in the island state has passed its peak. Top places in regional Tassie are Brighton, Devonport, Invermay, New Norfolk and Youngtown,” he added.

Where to buy in 2023? The top cities and regions

2023 Ranking 2022 Ranking Region
1 9 Adelaide
2 8 Brisbane
3 7 Perth
4 2 Regional Queensland
5 3 Regional Western Australia
6 6 Darwin
7 1 Regional New South Wales
8 14 Regional South Australia
9 5 Canberra
10 10 Regional Victoria
11 13 Hobart
12 4 Sydney
13 11 Melbourne
14 12 Regional Tasmania

Adelaide the top market for capital growth

Following many years of flying under the radar, Adelaide is no longer an underrated market, according to the report.

“Adelaide has been at the forefront of price growth nationwide for the past two years and continues to have one of Australia’s busiest and most competitive property markets, with homes selling quickly at higher-than-expected prices,” said Mr Ryder.

“It has been one of the markets most resistant to recent downturn price pressures and is now the top-ranked market in Australia, up from ninth last year. Previously regarded as a city that failed to deliver growth in its economy, population and property prices, Adelaide has been transformed by significant changes in its economy.

“It has claimed for itself the status as the high-tech innovation capital of Australia, with many national and international businesses based there. It also leads the nation in the alternative energy space and is a city of growing importance in the education and defence industries.

“Buyers have targeted Adelaide for its relative affordability, higher-than-average yields and good growth prospects.”

Mr Ryder added that value for money defines the Adelaide market.

The top 10 suburbs for the region include Christies Beach, Craigmore, Dover Gardens, Elizabeth Vale, Gilles Plains, Kurralta Park, Magill, Munno Para, Salisbury East and Seaford Meadows.

“The median house prices in all of the Rising Star locations in Adelaide are half of what you would typically pay for equivalent locations in Sydney or Melbourne,” he noted.

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