Suburbs Where Prices are Still Growing, Despite Cooling Markets

Property markets around the country continue to cool on the back of rapidly rising interest rates, but new data shows there are a huge number of suburbs still seeing strong price growth.

Analysis released by PropTrack for the three months to 30 June has revealed the top performing suburbs in each state and territory – with recording extraordinary increases in values.

For example, there are 23 suburbs across New South Wales that saw double-digit median price increases in the quarter. Victoria had 15 suburbs with 10% increases or more.

But coming out on top was Queensland, with a whopping 249 suburbs posting double-digit dwelling price increases.

Cameron Kusher, executive manager of economic research at PropTrack, said a two-speed real estate market has emerged over the course of 2022.

“Broadly, prices are falling in Sydney and Melbourne, but are rising in South Australia and, while growth is slowing in Queensland, it remains more robust than other major markets,” Mr Kusher said.

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Large parts of NSW still going strong

Despite markets cooling faster in NSW than many other parts of the country, the state still had 23 suburbs with double-digit price growth in the three months to June.

Many were in regional areas, with Newcastle East seeing its median unit price soar by 23.3% to hit $1.44 million – the biggest result in the quarter.

Units in North Tamworth also did well, with the median of $432,620 having grown by 16.87% in the three months to June.

House prices in West Wollongong also saw a 9.8% increase, pushing the median to $1.09 million.

Newcastle beach

Regional pockets like Newcastle had a strong quarter. Picture: Getty


Despite some stellar results, Mr Kusher said the market in Sydney has largely shifted over the quarter from one in which prices were slowing to a scenario where falls are being seen.

“It’s quite stark how many suburbs have recorded value declines,” he said.

“In the three months to June, 65.4% of all suburbs in NSW recorded a decline in values, but it’s very noticeable that the slowdown is much more rapid in Sydney.”

During the quarter, 73% of Greater Sydney suburbs saw a fall in home prices, he said.

Bright prospects in Bardwell Valley

There were still some strong results in Greater Sydney, with the median house price in Bardwell Valley in the city’s south increasing by 10.83% to reach $1.71 million.

Local agent Stefan Bujak from Prestige Property Group said the suburb’s close proximity to the booming inner-west, but abundance of comparatively cheaper homes, made it increasingly popular.

“That’s enticed buyers in droves,” Mr Bujak said.

“They discovered they could get a bigger house on a bigger block at better value. Most buyers are young families and professionals who want a quiet neighbourhood but not too far from the hustle and bustle.”

Bardwell Park

Buyer interest remains strong in Bardwell Park. Picture: realestate.com.au/buy


Neighbouring Arncliffe on the Princes Highway offers a convenient gateway to the CBD, the airport, and the coast, he said.

“Bardwell Valley continues to thrive, even in the changing market. The nearby inner-west is rebalancing like the rest of Sydney and the heat has come out of prices, but many buyers are still looking here.

“Here, you can get a 500sqm block in a quiet street with a lock-up garage, or go to the inner-west and get a small semi beneath the flight path in a tight street with no parking, for the same price. I know what I’d pick.”

Buyers crowing about Concord West

Closer to the Sydney CBD, the suburb of Concord West has seen an influx of would-be buyers keen to snap up well-located apartments.

That demand saw the median unit price rose by 14.1% to tip over the seven-figure mark, hitting $1.08 million in the June quarter.

While detached and semi-detached homes tend to dominate the dwelling landscape, buyers on a budget are welcoming the chance to live in a solid unit in a desirable area and at a lower price point.

Concord

Concord is an increasingly popular suburb. Picture: Getty


Local agent Shane Sullivan from Horwood Nolan said interest in Concord West has surged during the first half of 2022.

“Although the market is changing, I believe that suburbs that tick a lot of boxes for families will still perform well,” Mr Sullivan said. 

“Most buyers will be upgrading and upsizing, which means prices will remain relevant. We’ve already seen sales in Concord West that show us owners are still selling well given the current state of the market.”

Queensland markets roaring along

In the latest quarter, Queensland was home to a staggering 249 suburbs where median home prices increased by 10%.

The top result in the Sunshine State in the three months to June was the town of Tully in the far north, about 140km south of Cairns. Its median house price leapt by a staggering 24.8% to reach $313,180 and is now 37.9% higher year-on-year.

Regional pockets dominated the list, with suburbs in Toowoomba, Wide Bay, the Darling Downs, Cairns, Mackay, and Townsville posting strong growth.

“While price growth has been slowing in Queensland, it wasn’t until the month of June that the PropTrack Home Price Index started showing value falls,” Mr Kusher said.

West End is best in Brisbane

One of the biggest movers in Greater Brisbane was the inner-city suburb of West End, where the median house price surged by 12.68% in the June quarter to $1.82 million.

Likewise, just next door, Highgate Hill saw its median house price leap 12.64% in three months to also hit $1.82 million.

Local agent Luke O’Kelly from Ray White in West End said the price growth over the past year in both suburbs has been “staggering”.

“They’ve always been high demand suburbs due to their location so close to the city, and being in the Brisbane State School catchment, plus the diversity of the community and locals,” Mr O’Kelly said.

West End market

West End and Highgate Hill are vibrant and trendy suburbs in inner Brisbane. Picture: Getty


Turnover tends to be low, with about 50 houses selling each year in both pockets, so the recent skyrocketing demand created intense competition among buyers, he explained.

“When people move to West End, they stay. It might be that their children go to a local school, or they just love the vibrant community. It really attracts people.”

Despite the growth, Mr O’Kelly believes the area is still undervalued – especially when compared to other prized CBD fringe suburbs, like New Farm, Bulimba, and Hamilton.

“When buying close to the Brisbane CBD, West End is good value. With a great location, great schools and a riverside lifestyle, why would you not buy here?”

Renewed demand in New Farm

While always a popular location, the riverside suburb of New Farm in inner-city Brisbane has had a particularly strong run.

The median house price surged by 12.5% in the three months to June, reaching $2.65 million.

Local agent Tom Lyne from Ray White New Farm has worked in the area for a decade and said the market is the strongest he’s ever seen it.

“What’s driving this is historic low levels of stock and an unwavering demand that we just can’t service,” Mr Lyne said.

New Farm

The New Farm market is booming, from the prestige end to first-home buyer properties. Picture: Getty


New Farm and neighbouring Teneriffe are uber trendy neighbourhoods with a plethora of cafes, bars, and restaurants, as well as boutiques and parks.

“The lifestyle offering is only getting better and better each year and there are no signs that will slow down,” Mr Lyne said.

Victorian regions still humming

The market slowdown is being felt in Australia’s second-largest housing market, although Victoria still had 15 suburbs with median dwelling price growth of 10% or more in the June quarter.

Homebuyer demand in non-metropolitan areas of the state is pushing up prices in a number of locations.

For example, the median unit price in Ballarat Central saw the heftiest quarterly gain, rising 23.8% quarter-on-quarter to hit $552,712.

Traralgon in the Latrobe Valley saw its median unit price soar by 23.04% to reach $454,798.

The Geelong region performed strongly through the quarter, with the median unit price in Newcomb rising 15.3% to $614,610 and the median house price in Thomson up 8.4% to $615,133.

Mixed bag in Melbourne

Growth was much more subdued in Greater Melbourne, with units the prestigious inner-city suburb of Prahran recording the biggest quarterly metropolitan jump, up 10.6% to $1.98 million.

The suburb’s proximity to the CBD and abundance of exceptional local amenities make it a “perennial favourite” among buyers, local agent David Sciola from Jellis Craig said.

“Whether you prefer the urban appeal and activity around Chapel Street and Prahran Market, or the quiet leafy streets of Prahran East and Hawksburn Village, there are pockets to suit all types of buyers and stages of life,” Mr Sciola said.

Prahan street

Prestigious Prahran’s housing market is going strong. Picture: Getty


Large parts of the suburb are protected by blanket heritage overlays, meaning the unique streetscapes, dominated by historic Victorian and Edwardian homes, remain “quaint and charming”.

“A great example of this is Bowen Street, which is almost entirely comprised of freestanding, block-fronted Victorian cottages built in the 1890s,” he said.

While density is increasing thanks to new apartment developments, Mr Sciola pointed out that there are only a finite number of detached and semi-detached homes.

“They will become scarcer and more desirable over time.”

Elsewhere, units in the CBD bucked more recent trends of declining or flat growth, posting a median price increase of 7.7% to $623,288.

“But property prices in Melbourne have fallen over each month of the past quarter, which has resulted in a majority of suburbs throughout the state recording a fall in median values over the three months to June,” Mr Kusher said.

Fewer regional suburbs saw price declines (48.5%) compared to metropolitan ones (69.3%).

Melbourne CBD

Demand for units in the Melbourne CBD looks to be rebounding. Picture: Getty


South Australia’s market still surging

Areas in the regional hotspot of the Barossa were standouts in the three months to June, with a number of suburbs appearing on the top growth list.

Median house prices in Booleroo (up 24.6% to $339,047), Orrorro (up 20.9% to $217,771), and North Beach (up 15.6% to $391,255) were standouts.

Unlike many other cooling states, metropolitan suburbs appeared high on the list, with sustained strong demand from buyers keeping competition fierce.

A hop, skip and a jump to the north

The median unit price in North Adelaide grew by 17.3% to hit $683,994, which doesn’t surprise local agent Andrew Fox from Fox Real Estate.

“Apartments and units are still showing good growth for a number of reasons, with buyers telling us the popularity is due to the suburb’s prime position close to the city, as well as lifestyle amenities like parklands, restaurants, and cafes,” Mr Fox said.

“The scarcity of land means very few new developments appear, and properties are tightly held. Some of the older-style apartment towers enjoy irreplaceable positions and sensational views, and many have been beautifully renovated.”

Adelaide

Adelaide’s housing market is defying cooling trends seen in other capital cities. Picture: Getty


Buyer demographics vary from young professionals to empty nesters, but astute investors have also been active in recent times, he said.

“Rental yields are very strong and vacancies extremely low. We’ve been inundated by local, interstate, and international buyers who are eager to invest solely in North Adelaide.

Mr Kusher said the market in South Australia continued to roar ahead, with a comparatively small number of suburbs recording declines in the past quarter.

“Only 35.2% of all SA suburbs recorded a value fall over the quarter, made up of 35.8% of Adelaide suburbs and 33% of regional suburbs,” he said.

Elsewhere around the country

Tasmania was home to 12 suburbs that saw their median dwelling prices increase by double-digits in the three months to June.

The top performer in the quarter was Queenstown in the state’s northwest, where the median house price jumped 16% to $214,153.

Meanwhile in Western Australia, a post-Covid resurgence is seeing market activity lift, with 15 suburbs recording median price increases of 10% or more in three short months.

Karrinyup to the north of the Perth CBD saw its median unit price increase by 23.7% to reach $609,482.

Canberra’s market has performed more flatly than its capital city counterparts, with just one suburb in the nation’s capital recording double-digit growth.

Units in Deakin performed well, with the median price jumping 10.29% to $870,903.

And in the Northern Territory, which is a traditionally unpredictable market, two suburbs saw median dwelling prices increase by double-digits.

The median house price in Jingli in Darwin’s north grew by 15.5% in the three months to June, to hit $634,874.

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