The latest valuation data has unveiled 87 suburbs in Australia that have not just kept pace with the housing market but have, in fact, outperformed it significantly. These overachieving suburbs stand out for experiencing stronger house price growth compared to their neighboring areas.
PropTrack‘s analysis zeroes in on the standout suburb in each Statistical Area 4 (SA4) region, as defined by the Australian Bureau of Statistics. These regions have a minimum population of 100,000 persons, providing a comprehensive view of the market dynamics.
In these top-performing suburbs, house prices witnessed remarkable growth over the past year, surpassing the overall trend in their localities. The surge in property values has been a boon for existing property owners but has posed challenges for prospective buyers, particularly in markets where demand far exceeds supply.
Notably, several of these high-performing suburbs recorded price increases of over 20% in the past year, with the most significant gains concentrated in Perth, Adelaide, and southeast Queensland. Sydney’s suburbs showcased a remarkable jump in value ranging from 10-20%, while Melbourne’s top growth areas saw increases between 4-8%.
Interestingly, in certain regional areas, particularly in New South Wales and Victoria, the highest-growth suburbs exhibited a more subdued annual growth rate of 0-4%, contrasting with the robust performance of their metropolitan counterparts.
PropTrack‘s Senior Economist, Eleanor Creagh, highlighted that the surge in property values in specific suburbs across regions is indicative of stretched affordability, a consequence of the increased interest rates observed in the past two years.
“In 2022, as interest rates initially rose, more affordable regions demonstrated resilience. Subsequently, in 2023, numerous relatively affordable suburbs sustained this outperformance amidst continued interest rate hikes and a persistently low housing affordability index,” she noted.
The data relies on PropTrack’s Automated Valuation Model (AVM) to ascertain the median property value for each suburb.
Jump ahead to see the overachieving suburbs in:
- Queensland
- Western Australia
- South Australia
- New South Wales
- Victoria
- Tasmania
- Northern Territory
- Australian Capital Territory
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