With the new year in full swing, the 2023 property forecasts are rolling in. PropTrack data shows that buyer demand has moderated in response to higher interest rates and living costs, reducing buyer competition. But we have to ask, perhaps that makes it a better time to buy – with less competition and more affordable homes on the market, and if not now, when? And according to Domain, property listing periods reflect these market changes. In regions like Hobart, Melbourne and Sydney, house and unit listings are hanging around for longer, year-on-year, (based on October 2021 vs October 2022 data). However, in hot spots like Brisbane, Adelaide, Darwin, and Perth, homes and units are still being snapped up quickly (with dramatic reductions in listing periods).
This data points to the fact that home buyers and those looking to make investments in 2023 still need to act quickly in some regions, but in other regions, there’s a little more time to weigh up your options and take a carefully considered approach to invest. And remember, your first home investment doesn’t need to be somewhere you live – it can be purely a nest egg for the future. We believe that factoring in future growth should always be a key consideration in property investment, and here, we’ve collated our top picks for future growth across the country:
With significant growth predicted for Melbourne thanks to the revitalisation of the Yarra River bank and Metro Tunnel project there are a few key spots that will see the most growth, here are our top two picks for Victoria:
With a current median house price of $892,500, Croydon South tops the list for growth potential. This is primarily due to its transformation (as part of a local government pilot program) towards being a 20-minute neighbourhood. Residents can walk, cycle, ride or take local public transport to access most of their daily needs, including shops, childcare and schools, parks, doctors and public transport – all within a 20-minute journey from home.
Second on the list, North Melbourne which is pegged to see the direct benefits of the Arden Station being built as part of the Metro Tunnel Project. The neighbourhood will experience significant gentrification as a result, and a rise in the current median house price of $1,267,500 is predicted.
New South Wales:
Tipped to make a comeback early this year, property prices are forecast to fall, giving savvy buyers ample opportunity to get their foot in the door within this traditionally steady state.
Just 10 minutes on the train to the Sydney CBD, awash with local parks (and one of the best dog parks in Sydney) and located in the desirable eastern suburbs, Edgecliff has a lot to offer – making it a rising star when it comes to investment opportunities.
With a median house price of over $1,000,000 and strong annual growth, Shoalhaven’s coastal location reflects the current appeal to choose suburbs high on lifestyle over proximity to the city.
While property prices are forecast to fall in 2023, the return of international migration could change this – particularly in regions like ACT that are pegged for significant population growth.
Canberra’s population is predicted to nearly double within the next 40 years, making for a smart investment. And in O’Connor – located in Canberra’s inner north – the properties are large, the backdrop is breathtaking, and median house prices are rising with an almost 30% increase year on year.
As one of Canberra’s greenest communities (with more than half of the suburb surrounded by parks, wetlands, and reserves), Forde boasts a quiet, tight-knit community high on appeal. Currently experiencing growth across population and median house prices, the suburb is on an upwards trajectory.
With a nation-leading economy thanks to key indicators across employment, wage growth, population growth and housing supply, Tasmania’s post-pandemic bounce back has been unrivalled.
Located in regional Tasmania, Devonport is home to the state’s largest urban renewal project seeing major redevelopments that will be completed across four stages. This project will completely transform the suburb and drive future appeal.
Just 15 minutes from the Hobart CBD and with doorstep access to the ocean, cliff trails and a scenic golf club, Kingston Beach effortlessly checks both the lifestyle and proximity to the city boxes. Add to this a median property price just hitting the $1 million mark, and it’s easy to see the appeal.
With a bevy of beachside homes and attractive prices, South Australia experienced strong COVID-driven ‘tree/sea change’ growth – which it has maintained.
With double-digit median house price growth year on year, and median house prices sitting at $585,000, Kilburn – a mere 20-minute drive from Adelaide’s CBD tops the charts for South Australian property investment.
In growth mode, Christies Beach is an idyllic sea-side location with plenty of amenities – from schooling to cafes and supermarkets – all within easy walking distance. With a diverse range of housing options, Christies Beach has seen a whopping 32% increase in median house prices over the last 12 months, with a median house price currently sitting around $530,000.
A state that has seen significant growth in population in recent years and is predicted to see more in the years to come, the northern and southern suburbs, in particular, are where new residents are flocking. Perth is also a standout with the lowest median house price of all of Australia’s capital cities.
Just 8 kilometres from the CBD, Bentley is home to an abundance of amenities, the popular Curtin University, and a growing population. The suburb has experienced a 50% increase in house sales in the year to March 2022, and with a median house price of under $500,000, it’s a hot spot for first-home buyers and those looking for an affordable investment.
Proximity to the CBD and an array of housing options across various price points continue to make Morley popular with buyers. With a median house price of $535,000, it’s a little more expensive than Bentley but is also seeing strong year-on-year growth in sales.
With the 2032 Olympics on the horizon for Brisbane, significant investment – to the tune of $190 million in State Budget funding – is in the pipeline for the city. As a result, many are looking towards long-term investment options across the state.
With population and median house prices in growth mode, Southport’s picturesque location north of the Gold Coast and an abundance of shopping areas have made it a haven for home buyers and investors. Median house prices have grown just shy of 20% in the last 12 months and are now at around $830,000.
Family-friendly and high on convenience, Apsley has a median house price of $955,000, representing a massive 20% jump over the last 12 months. Units and apartments remain affordable, with a median price of $515,000.
According to Canstar’s inaugural Bright Starter Report – which looks at five key metrics from sales volume, price growth, vacancy rates, infrastructure and proximity to work and amenities – Darwin has a median house price of just over $500,000 and is a great place to invest. And the hotspots are:
This inner-city suburb has a median house price of $480,000, making it an affordable investment option. With easy access to public parks, schools, shopping centres and playgrounds, everything is on hand.
Gray has seen double-digit growth in median house prices over the last 12 months, and demand is steadily rising. Located close to Palmerston City centre, Gray has fantastic access to amenities and a median house price of just over $440,000.
If you’re thinking about investment abroad, New Zealand like the Australian property market, has experienced a significant COVID-driven upswing in the past two years. Property prices in New Zealand are now trending downwards, though, with the decline indicating that a property price correction could be seen in 2023. That being said, there are still pockets of growth throughout New Zealand worth considering:
Drawing residents from across the country, Dunedin is a diverse city with employment opportunities in a range of industries and an increasingly valued quality of life. With a $1.4 billion rebuild of the local hospital underway, the city is set to see major growth, and as home to the University of Otago, the student population is consistent.
A slower pace lifestyle area with rising demand, Invercargill is popular with families due to its affordable housing, good schooling, and self-contained feel. With a steady flow of tourism, thanks to its proximity to Milford Sound and Stewart Island, its median house price of $487,000 (representing 19% growth year on year) makes it an affordable investment in the Southland Region.
Change leads to opportunities
Off the back of COVID, the property market across Australia and New Zealand is seeing the trends of the past two years start to change. And while there is change, there continues to be pockets of growth and opportunity, if you want to be part of this growth contact your local First National Real Estate office today to seize the opportunities.