Despite a challenging economic climate marked by substantial interest rate hikes, 2023 saw an overall upward trend in Australia’s property market. However, this general growth didn’t uniformly affect all areas, highlighting some interesting exceptions.
Australian real estate witnessed a notable increase of 8.1% in average property prices this year. According to the latest insights from the PropTrack report, there was a distinct variation in growth rates between urban and rural regions. Capital city properties experienced a 6.6% price hike, while regional areas saw a more modest 2.8% increase. Interestingly, the growth in house prices slightly outpaced that of units, with the former rising by 5.6% and the latter by 5%.
But despite the general uptrend, not all suburbs saw growth, presenting a unique opportunity for bargain hunters and first-time home buyers.
This anomaly in the property market trend could be a silver lining for those seeking more affordable investment options or stepping onto the property ladder for the first time. Stay tuned as we delve into these specific suburbs that defied the overall rising trend, potentially offering valuable deals in 2024’s real estate market.
Victoria
More than 50 Victorian suburbs saw house princes exceed the average national income in 2023. Increase in migration particularly from China and India were a key factor behind the growth according to agents in some of Melbourne’s best performing suburbs.
PropTrack’s quarterly data shows median house values rose in 218 suburbs, 53 per cent of those assessed, across the past 12 months. Seven Melbourne suburbs even posted gains above $100,000 to trump the state’s $91,500 average income.
Top performers included Balwyn, where house values rose 7.36 per cent and Wheelers Hill which increased to 6.72 per cent.
Five VIC suburbs that had the biggest drops
- Avoca -8% (median price fell by $33,283)
- Mount Pleasent -7.92% (median price fell by $41,577)
- Redan -7.88% (median price fell by $38,784)
- Foster -7.62% (median price fell by $46,625)
- Bendigo -7.15% (median price fell by $43,979)
Queensland
House prices were up more than $300,000 in Queensland’s strongest performing markets.
Greater Brisbane’s average home price climbed 10.45 per cent, soaring to a record high of $783,000. Meanwhile the state’s 32 top-performing suburbs notched up between 20 and 30 per cent annual growth across unit or house sectors.
Suburbs in Ipswich and Logan led the gains with priced-out buyers widening their net to the edges of the city’s urban sprawl in search of affordability.
Five QLD suburbs that had the biggest drops
- Sunset -7.76% (median price fell by $23,326)
- Healy -7.12% (median price fell by $28,757)
- Soldiers Hill -6.82% (median price fell by $22,777)
- Woombye -0.73% (median price fell by $6,171)
- Peachester -0.40% (median price fell by $3,997)
South Australia
A dozen new suburbs entered Adelaide’s million-dollar club over the past year. Seacliff, Glenelg North, Glengowrie, Clarence Gardens and North Brighton were among the 12 that hit the seven-figure median house price threshold as of December.
Malvern and St Peters’ median house prices surpassed $2m, joining Toorak Gardens – which was the only suburb with a $2m median in December 2022. The city now has 64 suburbs with median house prices above $1m and three with medians above $2m.
Three SA suburbs that had the biggest drops
- Roxby Downs -1.94% (median price fell by $6,483)
- Woodforde -1.40% (median price fell by $13,213)
- Semaphore -0.23% (median price fell by $2,041)
New South Wales
The Sydney property market saw home values defy predictions and rose steadily in 2023 – with some areas increasing by as much as $1.5 million.
Greater Sydney’s average dwelling price climbed 7.72 per cent last year to $1.062m with more than 90 per cent of suburbs increasing in value. Suburbs that had the biggest price drops were in Central Coast, Baulkham Hills and Hawkesbury regions – areas that saw significant growth during the Covid lockdowns.
More than 40 suburbs surpassed the $1m mark in terms of median values, while 26 suburbs leapt into the $2m bracket, 12 entered the $3m zone and four crept across $4m.
Five NSW suburbs that had the biggest drops
- Mullumbimby -12.35% (median price fell by $154,400)
- Forresters Beach -11.38% (median price fell by $187,503)
- Kurrajong Heights -10.71% (median price fell by $115,167)
- Ocean Shores -9.51% (median price fell by $114,561)
- Glossodia -8.63% (median price fell by $76,059)
Western Australia
House and unit values in Perth enjoyed the most significant increases with a 12 per cent surge in 2023.
Five WA suburbs that had the biggest drops
- Dampier -5.51% (median price fell by $46,550)
- Millars Well -3.39% (median price fell by $16,483)
- Cable Beach -3.04% (median price fell by $18,838)
- Pegs Creek -3.01% (median price fell by $15,046)
- Broome -2.86% (median price fell by $16,423)
Northern Territory
Northern Territory remains the cheapest capital city to buy a home with an average value of $496,000.
Five NT suburbs that had the biggest drops
- Nakara -9.60% (median price fell by $62,385)
- Milner -8.25% (median price fell by $48,548)
- Jingili -8.14% (median price fell by $48,633)
- Anula -7.81% (median price fell by $43,355)
- Tiwi -7.04% (median price fell by $39,455)
What will house prices do in 2024?
According to the latest PropTrack Outlook Report the forecast for price growth in the year ahead sees national home prices expected to climb between 1 per cent and 4 per cent in 2024.
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