The most in-demand suburbs for buyers heading into spring
Over the past few months, the property market has continued to cool with increases in mortgage repayments being a key driver of decreased demand. However, some suburbs are defying the trend and still remain popular among buyers.
In 2021, historically low interest rates brought about immense levels of demand for homes and consequently record levels of home price growth.
Following recent interest rate hikes and the anticipation of further increases from the Reserve Bank, demand from home buyers has progressively fallen from its peak late last year.
This is evident in the decline of potential buyers per listing since the beginning of 2022.
Although, it is important to note that the number of potential buyers is still above pre-pandemic levels, and in some regions across Australia, demand has not shown signs of slowing down.
To get a sense of the areas that have withstood the shifts in the market, we looked at the suburbs with the most potential buyers per listing relative to the median of their Greater Capital City Statistical Area (GCCSA).
Suburbs in the Gold Coast and Sunshine Coast were among those most in-demand for houses, with a few in Perth also of high interest among potential buyers.
Houses listed in Springbrook, Lower Beechmont, and Stapylton in the Gold Coast region had 239%, 226% and 185% more potential buyers respectively than a typical suburb in regional Queensland.
With house prices below the median of the region, buyers were likely attracted to the relative affordability of these suburbs.
Seaside and nature-rich areas also continued to be in high demand.
There was at least 170% more potential buyers per listing in Maroochy River, Tallebudgera, and Trigg compared to the median in regional Queensland and Perth.
The trend was similar for units, with Gold Coast, Sunshine Coast, and Brisbane suburbs most sought out by people looking to buy.
Units in Peregian Beach, Currumbin, and Highland Park had 276%, 247% and 219% more potential buyers per listing respectively than a typical regional Queensland suburb.
Red Hill and Wilston in Brisbane also received strong interest from buyers, with 1.7 times more people looking for units compared to the average of the city.
Margaret River in Western Australia was popular among buyers as well.
Heading into spring, we expect demand for homes in Queensland, South Australia, and WA to continue to exceed that of other states.
With more affordable homes relative to New South Wales and Victoria, buyers looking for lifestyle shifts will find these particular states quite attractive.
* Article written by Megan Lieu, Economic Analyst at REA Group
