Affordable Suburbs Lead Property Market Surge: Experts Predict More Peaks Ahead
Property markets across Australia are showing signs of renewed strength, with many suburbs nearing or surpassing previous price peaks. Experts anticipate this trend will continue in the coming months, driven by demand for more affordable housing options.
A recent report by Cotality identified 329 suburbs within 0.5% of their previous peak, with 290 experiencing value growth in the three months to June. Notably, many of these high-performing suburbs are located in outer, more affordable areas.
In Sydney,the south-west region has seen important gains,with suburbs like Bonnyrigg,Cobbitty,and Bonnyrigg Heights recording double-digit growth and median dwelling values between $1.12 million and $1.234 million.Melbourne’s north-west, including Dallas, Meadow Heights, and Coolaroo, has also experienced strong price increases, while Eumemmerring in the south-east saw the largest rise at 7.9%. Brisbane’s Ipswich area and Perth’s more affordable markets have also shown notable growth.
Industry professionals attribute this surge in affordable markets to the impact of higher interest rates. “The more affordable end of the market has seen much stronger growth over the past year, year and a half,” explains Ezzy, a market analyst. “As people try to contend with higher rates and borrowing costs.”
While these rising prices may raise affordability concerns for some, buyers looking in suburbs not yet at their peak may find opportunities for slight discounts. Mortgage broker Anthony landahl notes a clear trend of clients seeking homes in more affordable areas, particularly those looking to upgrade or purchase their first property.
“A lot of people have been finding that an upgrade from their first property to a house in the area they might have bought their first property is almost unachievable,” Landahl states.He highlights deposit size and reduced borrowing capacity due to higher interest rates as the primary challenges for buyers.
In Melbourne, buyer’s agent Cate Bakos has observed increased investor activity, particularly from interstate, in the western suburbs. “I’m seeing an enormous number of investors looking for sub-$750,000 houses on land,” she reports, noting significant interest from Perth, Adelaide, and brisbane.Considering a property purchase? Explore the growing opportunities in Australia’s affordable housing markets.
