Rapid price growth makes trends harder to predict, property expert says
Several Australian suburbs are on the verge of reaching a $1 million median property price, latest analysis from Propertybuyer and Hotspotting has revealed.
The firms’ report highlights 10 locations: nine are house markets and one is a unit market. Three suburbs are in New South Wales, three in Victoria, three in Queensland, and one is in South Australia.
The report highlights affordability, infrastructure, and buyer demand as key drivers of growth.
The 10 suburbs identified in the report are:
- Alexandra Hills, QLD: Bayside suburb with strong owner-occupier demand and access to major infrastructure
- Berkeley Vale, NSW: Central Coast market with lifestyle appeal and growing infrastructure
- Biggera Waters, QLD: Gold Coast suburb offering waterfront living and access to key amenities
- Chelsea, VIC: Bayside location in Melbourne attracting buyers priced out of nearby markets
- Clayton South, VIC: High-demand area near employment hubs and transport
- Doonside, NSW: Western Sydney suburb benefiting from infrastructure investment and fast sales
- Greensborough, VIC: North-east Melbourne suburb with family appeal and proximity to the CBD
- North Lakes, QLD: Master-planned community with sustained demand and low vacancies
- Seaton, SA: Adelaide suburb near the coast with strong sales and amenities
- Summer Hill, NSW: Inner West Sydney unit market with high yields and village atmosphere
According to Rich Harvey (pictured right), chief executive and founder of Propertybuyer, rapid price growth is making it more difficult to identify suburbs about to cross the $1 million mark. “It’s getting harder to pick suburbs because some accelerate over the finish line so much faster now” he said. “Frankston, for example, jumped a hundred grand in three months.
“We try to pick areas where we believe there’s a groundswell of factors pushing it forward – that ripple effect of growth is meaning these areas are now rising. For example, suburbs such as Biggera Waters and North Lakes in Southeast Queensland and Chelsea in Melbourne are attracting a mix of first- and second-home buyers, as well as investors. You’ve got that combination of all of those three buyer groups competing for limited stock.”
Harvey noted that government incentives for first-home buyers may also influence demand. “The new 5% deposit scheme is going to send the market nuts,” he said. “You’re going to see so many more buyers trying to get onto the property ladder.”
He also advised buyers to consider strategic approaches such as “property arbitrage” to optimise returns.
“We’re trying to educate property buyers on where the best spot is to achieve the best ROI on their money,” he said. “Brisbane and Melbourne are both cities with plenty of petrol left in the tank, but the next price frontier is looming. Soon enough, we’re going to have to be talking about the $1.5 million dollar hotspot report.”
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