2023 | Top growth suburbs in Australia right now
Looking to invest in a property hotspot which is outperforming the market in 2022?
Against a backdrop of rising interest rates and the pandemic frenzy fizzling out, you’d be forgiven for thinking the brakes have been firmly slammed on house price growth. This is entirely correct, but despite market conditions softening in most major capital cities and overall nationally, there are still many locations where demand (and price growth) is robust.
As we have reiterated on these pages before, each suburb is essentially its own property market, with its own drivers and conditions - and it’s all about using data to identify high growth suburbs.
Using data to identify high growth suburbs
High growth suburbs tend to have one or more - sometimes all - of the following factors present:
- Consistent and rapid rise in property values over a relatively short time frame.
- Properties sell quickly, and don’t spend many days on market (DOM), a sign there is strong demand in a suburb.
- Rising rental yields, which is a value of how much income a property could fetch over a timeframe, as a proportion of its value. Higher yields indicate there is strong demand for rental accommodation.
- High auction clearance rates, which are reported as a percentage of the number of properties sold over a week/month.
- Low vacancy rates indicate strong demand for rental property in an area.
Let’s now look at ten suburbs tipped to grow fast in the year ahead, based on the last year’s performance
Top 10 growth suburbs in Australia right now
1. Warners Bay, NSW 2282
Warners Bay, in the Lake Macquarie district of NSW has a lot going for it, being situated right on picturesque Belmont Bay - and within striking distance of the ocean and regional centre Newcastle. This has made it popular with sea changers and families alike. There is a good selection of local schools, government and independent as well as supermarkets and leisure facilities. With a median house price just under the $1 million mark, no wonder this location has seen strong growth - +23.5 per cent - over the last year.
- Median house price: $957,775
- Growth over 12 months: +23.5%
2. Dundowran Beach, QLD 4655
Dundowran Beach in Hervey Bay, Qld has a lot going for it, including year-round perfect weather, a stunning location and Fraser Island right on your doorstep. No wonder the area consistently ranks highly on lifestyle metrics. In terms of property, there is a wide range of options, from older established houses, townhouses, villas and newer house and land packages right on the beachfront or just out of town. It's no wonder that house prices have risen +26.2 per cent over the last 12 months, and are still relatively affordable with a median house price of $850,000.
- Median house price: $850,000
- Growth over 12 months: +26.2%
3. Melton, VIC 3337
Melton is a family-friendly Melbourne suburb just 37km west of the CBD, just beyond the city sprawl. It has good local schools as well as decent access to green space and major transport links. The real highlight are house prices, with affordable suburban living available at a hair under $500k, or a little more for a four bedroom property. Prices have advanced a respectable 15.6 per cent over the last year.
- Median house price: $497,000
- Growth over 12 months: +15.6%
4. Bendigo, VIC 3550
The lure of a quieter lifestyle away from the big cities is still there, and Bendigo fits the bill. This regional town - population 1000,000 - in central Victoria is around two hours by car or train from Melbourne. Bendigo has a rich cultural life, with food and art festivals as well as sporting events. House prices have advanced +14 per cent over the past 12 months, after a stellar 2021 when the pandemic boosted prices + 29.7 per cent. If you are looking at investment properties, houses in Bendigo rent out for $400 per week with an annual rental yield of 3.5 per cent.
- Median house price: $627,500
- Growth over 12 months: +14.1%
5. Burnie, TAS 7320
Burnie, a small port town on Tassie’s north-west coast with spectacular coastal views and lots of fresh air. This, and affordable property, are luring people to the north of Tasmania looking for an alternative to big city living. If you are moving from one of our capital cities, prices in Burnie will come as a welcome surprise, with a median house price of $437,500 and have grown +16.7% over the past year. In terms of rents here, houses rent out for $367 per week.
- Median house price: $437,500
- Growth over 12 months: +16.7%
6. South Launceston, TAS 7249
Launceston, Tasmania’s second largest city is known for being close to nature, with a stunning coastline and snow-capped hinterland. It has also become a much sought after destination for mainland sea-changers, particularly during the pandemic. This has propelled property here up +35.6 per cent over the past year. With a median house price of $610,000, it is also a more affordable option to Hobart property, where entry-level properties start at $700k. House rents in Launceston are in the region of $460 per week, with an annual rental yield of 4.3 per cent.
- Median house price: $610,000
- Growth over 12 months: +35.6%
7. Armadale, WA 6112
Armadale, an attractive and hip inner-city suburb south of Perth’s CBD is still affordable, with a median house price of $300,000 (3 bedroom), with a median of $340,000 for a four bedroom house. The postcode has good access to public transport, schools and green space. This has made it popular with families with children, singles and professionals alike.
The suburb has recorded robust house price growth of +15.4 per cent over the past 12 months, after advancing +17.5 per cent in 2021. Houses in Armadale rent out for $350 per week, with a healthy annual rental yield of 6.3 per cent.
- Median house price: $300,000
- Growth over 12 months: +15.4%
8. Salisbury, SA 5108
Adelaide’s northern suburb of Salisbury has some of the cheapest housing in the city, with a median house price of $429,500. This has attracted activity, including from first time buyers, young families and investors. This is very likely why this location has recorded +26.3 per cent growth in house prices over the past year. Besides the affordability, the area is also close to employers in the food processing, defence, logistics and manufacturing sectors.
If you purchase an investment property, you can expect to get $360 per week, with an annual rental yield of 4.9 per cent.
- Median house price: $429,500
- Growth over 12 months: +26.3%
9. Port Elliot, SA 5212
If you like a slow pace of life and a coastal lifestyle then Port Elliot, on the picturesque Fleurieu Peninsula should be on your shortlist. At just under an hour’s drive south of Adelaide, you can access the big smoke and winelands fairly easily. Besides the magnificent coastline, there are decent amenities, shopping and medical services in nearby Victor Harbour. In terms of house prices, the median house price in Port Elliot is $740,000, and recorded a sizable jump of +26.5 per cent over the past 12 months.
- Median house price: $740,000
- Growth over 12 months: +26.5%
10. Caloundra, QLD 4551
Queensland’s Sunshine Coast continues to be popular with sea changers from across the country, and Caloundra’s property market is evidence of this phenomenon. House prices have grown +35.1 per cent over the year to date, largely driven by lifestyle factors - but also by relative affordability - compared to other more obvious Sunshine hotspots like Noosa Heads. If you are looking at rental yields, expect 3.6% annually and house rents of $595 per week.
- Median house price: $914,000
- Growth over 12 months: +35.1%