Property market price falls tipped for 2023 could mean bargains for prospective home buyers – but not all bargains are equal, according to Canstar’s annual Rising Stars Report.
In partnership with Terry Ryder, property expert and founder of Hotspotting, Canstar identified 110 promising property locations around the country based on sales volumes, price growth, vacancy rates and rental growth, plus infrastructure spending and amenities.
“Bargains may be just around the corner, with some forecasts predicting price drops of up to 20%,” said Effie Zahos, Canstar’s editor-at-large, Effie Zahos. “But not all bargains will get you the same gains. Whether you plan to wait a while to buy and hopefully snap up a bargain or you’re ready to jump into the market now, the number-one rule when it comes to buying property hasn’t changed. You’ve got to get your location right.”
Canstar said buyers need to also factor in affordability when buying in a market of rising interest rates.
“Shopping for the perfect house in the perfect street won’t matter if you can’t afford the loan,” Zahos said. “Buyers must carefully consider their future plans and if they can still reasonably make repayments.
“Rising interest rates and living costs will be impacting affordability and the borrowing power of buyers. This could see more buyers locked out. CoreLogic’s latest property data already shows six consecutive months of property price falls as buyers retreat. With less competition in the market prices in some areas could fall further.”
So, how do the cities and regions rank in this year’s Rising Stars Report?
“Last year regional locations dominated the top three locations to buy, but this year, it’s the smaller capital cities that shine,” Ryder said.
At the top of the leaderboard was the South Australian capital of Adelaide, for having the best prospects for future capital growth of the 14 jurisdictions assessed.
“Adelaide has been at the forefront of price growth nationwide for the past two years and continues to have one of Australia’s busiest and most competitive property markets, with homes selling quickly at higher-than-expected prices,” Ryder said. “It has been one of the markets most resistant to recent downturn price pressures and is now the top-ranked market in Australia, up from ninth last year.”
The top 10 Rising Star suburbs for this region include Christies Beach, Craigmore, Dover Gardens, Elizabeth Vale, Gilles Plains, Kurralta Park, Magill, Munno Para, Salisbury East, and Seaford Meadows.
“The median house prices in all of the Rising Star locations in Adelaide are half of what you would typically pay for equivalent locations in Sydney or Melbourne,” Zahos said.
Aside from Adelaide, two other real estate markets that offer buyers value for their money were Brisbane, in second place, followed by Perth.
“All three markets have been strongly resistant to the downturn pressures and have benefited from the pursuit of affordability, which is the strongest theme pervading property markets across Australia in 2022,” Ryder said.
Regional Queensland placed fourth this year, a slight drop from last year’s second place, but the outlook was still promising.
“As the nation’s leading recipient of population growth from internal migration, it continues to benefit from the ‘Exodus to Affordable Lifestyle’ trend,” Ryder said. “Places like Bundaberg South, Caloundra, Newtown, and South Toowoomba made the list among others.”
New South Wales saw the sharpest decline in the rankings, both in Sydney – which dropped from fourth to 12th – and in regional New South Wales, which fell from first to seventh.
“This has coincided with a notable drop-off in the state’s economy,” Ryder said. “Sydney and many of the high-profile regional markets have become very expensive locations for housing in the recent boom and it is the top-end markets that have declined noticeably.
“Suburbs making the list in Sydney included Campsie, Fairfield, Georges Hall, Granville, Jamisontown, Liverpool, Lurnea, Marrickville, Rooty Hill, and Westmead while regionally in the state it was places like Armidale, Dubbo, Glen Innes, Goulburn, Muswellbrook, and more.”
Canberra, another expensive property market, saw its ranking fall from fifth to ninth.
“Top places here include Chisholm, Dickson, Franklin, Ngunnawal, and O’Connor,” Ryder said.
Second to last in the rankings was Melbourne, one of the country’s biggest and priciest capital cities, after dropping two places from last year’s 11th place.
“The areas standing out in Melbourne are Caroline Springs, Epping, Forest Hill, Glen Waverley, Hoppers Crossing, Melton South, North Melbourne, Richmond, Roxburgh Park, and Sunbury,” Ryder said.
Last in the property market list was regional Tasmania.
“In last place is rRegional Tasmania, which after a prolonged boom, the regional property market in the island state has passed its peak,” Ryder said. “Top places in regional Tassie are Brighton, Devonport, Invermay, New Norfolk and Youngtown.”
Out of the 110 Rising Star suburbs in Canstar’s 2023 report, 81 suburbs have a median price under $600,000 and a further 10 are between $600,000 and $700,000.
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