australian housing
Image – Canva.
  • Despite much media attention surrounding falling house prices nationally, some markets remain relatively strong
  • Smaller cities and lesser-known regional centres are stealing the limelight
  • In Perth, the Armadale and Wanneroo LGA's remain growth markets thanks to their affordable price points and the strong WA economy

While the Australian property market began strongly in 2022, prices began to decline following the Reserve Bank of Australia (RBA) commencing its tightening monetary policy agenda in May.

The Sydney and Melbourne markets have been hit particularly hard during this time. Given these two cities makeup 40% of the Australian population, much media attention has focused on the overall decline of the market.

However, CoreLogic research released today has shown that some markets have remained relatively steady, and in the case of Perth actually increased slightly.

Terry Ryder, director of Hotspotting, noted that the smaller cities and lesser-known regional centres are stealing the limelight.

The HotSpotting Price Predictor for Summer 2022/2023 shows that there remains many property growth markets nationally, debunking the generally negative narrative seen over the past few months.

“Our analysis of locations across the nation reveals numerous growth clusters that are resisting the downward trend described by some commentators,” Mr Ryder said.

“Perth is the nation’s most vibrant market at present where about three-quarters of suburbs are rising or consistency locations, led by the affordable end of the market, plus, Wanneroo and Armadale feature among our National Top 10 Municipalities.”

Terry Ryder, Hotspotting

Terry Ryder
Terry Ryder. Image supplied.

Although the Adelaide market is not as strong as it was three months ago, it continues to be a solid performer. The local government areas of Playford, Salisbury, Onkaparinga and Marion have been performing strongly.

“For the fifth consecutive quarter, the Northern Territory capital has also produced buoyant sales activity. It offers affordability and the highest yields in any of capital city in Australia. The Darwin LGA is also a Top 10 Municipality,” Mr Ryder added.

“Meanwhile, in regional Queensland, it is the centres outside of the southeast that have the stronger growth markets.”

So, what are the top 10 markets poised for property growth in 2023?

Mr Ryder and the Hotspotting team have listed the below 10 markets which consist of big cities, smaller cities and regional areas. Do note this list in alphabetical order.

Which Australian housing markets will perform strongly in 2023?

  • Armadale, WA
  • Canterbury-Bankstown, NSW
  • Darwin, NT
  • Hume, VIC
  • Marion, SA
  • Playford/Salisbury, SA
  • Toowoomba, QLD
  • Townsville, QLD
  • Wanneroo, WA
  • Wollongong, NSW

Armadale, WA

The Perth property market remains strong thanks to its relatively affordable price point, and booming resources market, with a relatively high level of sales activity.

As noted in Hotspotting’s previous Winter and Spring editions for 2022, most of the stand-out LGA’s in Perth are at the affordable end o the market, which includes Armadale.

“Suburbs with rising sales activity include most of the suburbs in the City of Armadale in the far south of Greater Perth, many of them places with median house prices in the $300,000s and $400,000s, providing attractive affordability,” noted Mr Ryder.

“Mt Nasura ($490,000) features on our National Top 100 Supercharged Suburbs list.”

Canterbury-Bankstown, NSW

While the Sydney market declined significantly in 2022, some sectors are still attracting high levels of demand.

“The key feature is the decline at the top end and the shift in focus to more affordable suburbs,” Mr Ryder said.

“There remains strong buyer demand in precincts where houses are typically available in the price range from $900,000 to $1.5 million.”

“These areas, which continue to attract buyer activity at similar levels to 2021, include the Canterbury-Bankstown LGA, where 17 of the 23 suburbs are rising or consistency markets, a marked improvement on the situation six months ago.”

Darwin, NT

The Hotspotting report noted that the Northern Territory property market is the strongest it has been in the seven years of quarterly surveys.

“There is busy activity in the Darwin LGA and also the neighbouring Palmerston LGA,” explained Mr Ryder.

“The Darwin market remains strong – of 19 suburbs analysed, 11 are rising markets and three are consistency markets. In Palmerston, the 11 suburbs include seven rising and two consistency markets. Our National Top 100 Supercharged Suburbs list includes Stuart Park – where there is strong demand for affordable units –, Bakewell, Gunn and Zuccoli.”

Hume, VIC

While the Melbourne market declined steadily throughout 2022, the affordable end of the market remains strong.

“Clearly buyers are chasing affordability and one of the places they are finding it is in the City of Hume in the north. Of the 12 Hume suburbs in our analysis, nine are rising or consistency markets,” he said.

“Many of these suburbs have median prices between $580,000 and $650,000. They include Kalkallo ($620,000), which makes our National Top 100 list of Supercharged Suburbs with rising quarterly sales. Tullamarine ($780,000) also makes the Top 100 list.”

Marion, SA

Adelaide remains a strong growth market, having strongly resissted the downturn pressures which have impacted the larger cities.

“Our National Top 100 list of Supercharged Suburbs include 27 Adelaide suburbs, the most for any of the nation’s market jurisdictions,” he added.

“The middle-market City of Marion is one of the city’s steadiest performers: of the 19 suburbs in our analysis, 15 are classified as rising or consistency markets. This LGA attracts demand because has the Flinders Medical Precinct, Flinders University and Tonsley innovation precinct.”

Playford/Salisbury, SA

Mr Ryder noted that this is the fifth consecutive quarter that Playford/Salisbury has made the top 10.

“Playford and Salisbury LGAs form a strong precinct in the city’s affordable north. Of the 30 suburbs in the two LGAs, 21 are classified as rising markets and four others are consistency markets,” he said.

“Given that many of these suburbs have median house prices in the $200,000s and $300,000s, this is clearly an area targeted for its affordability. Eleven of these suburbs are included in the National Top 100 list of Supercharged Suburbs. They include Andrews Farms ($340,000), where quarterly sales have been rising quarterly for the past two years.”

Toowoomba, QLD

Regional Queensland remains a busy market, thanks to its collection of affordable regional cities, all with good growth prospects.

“Toowoomba is Australia’s second largest inland city and has a vibrant economy boosted by major new infrastructure, with the most influential – the $15 billion Inland Rail Link and a $1 billion hospital – still to come,” he said.

“This is energising the Toowoomba property market, with affordable prices, low vacancies and high rental yields attracting investors.

“Our analysis includes 25 suburbs and towns in the City of Toowoomba and 14 of them are classified as rising markets, with six others rated as consistency markets. Most of these suburbs have median house prices in the $300,000s and $400,000s.”

Townsville, QLD

Mr Ryder noted that Townsville is one of the stand-out markets in Australia, thanks to the diverse nature of its economy.

“The unofficial capital of North Queensland benefits from a sturdy, diverse local economy which underpins a real estate market boosted by the city’s attractive affordability, lifestyle, and ability to generate employment,” he said.

“Of the 26 Townsville suburbs included in our analysis, 23 are currently classified as rising markets. Five of them are included on our National Top 100 list of Supercharged Suburbs – Burdell (median house price $405,000), Condon ($300,000), Kelso ($295,000), Kirwan ($355,000) and North Ward (median unit price $350,000).”

Wanneroo, WA

Given Perth’s nation-leading market, the City of Wanneroo is one of the best markets in the nation.

Four suburbs in Wanneroo are featured on Hotspotting’s National Top list of Supercharged Suburbs, including Butler (with a median price of $405,000) where quarterly sales have been rising strongly over the past three years.

“The Top 100 list also features Alexander Heights ($480,000), Marangaroo ($465,000) and Merriwa ($395,000) – all places that offer attractive affordability,” added Mr Ryder.

Wollongong, NSW

Mr Ryder noted that many of the iconic markets in Regional New South Wales have declined in 2022. These include Byron Bay, the Central Coast and the Southern Highlands.

However, the City of Wollongong has moved in a different direction and is now actually the state’s strongest regional market.

“Of the 15 Wollongong suburbs in our analysis, 12 are classified as rising or consistency markets. The neighbouring Shellharbour LGA is also a buoyant market: of the eight suburbs in our analysis, six are rising markets and the other two are consistency markets,” he said.

“These locations have surged in 2022, in defiance of rising interest rates and other downturn pressures. Dapto (median house price $750,000) and Helensburgh ($1,230,000) are included on our National Top 100 list of Supercharged Suburbs, both with sales activity rising in the past two to three quarters.”

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