Victorian suburbs top the list for best buying opportunities in 2023

Victoria has topped the list for the most suburbs that offer great buying opportunities in 2023 according to a new report.

The Hot 100 list had 29 Victorian suburbs and towns on the list of locations that are likely to have strong prospects next year.

Topping the list for 2023 in Victoria was Dandenong North, which was nominated for its affordability.

Buyers agent Pete Wargent said the eclectic and diverse Dandenong North is one of the only Melbourne suburbs that saw a surge in demand during the pandemic.

Flexible working arrangements mean it will continue to benefit from a reduced need to commute to the office and make these types of locations more appealing.

Other suburbs to make the list from Victoria include Footscray, Forest Hill, Deer Park, Cranbourne, Bundoora, Berwick, Belmont and locations around Ballarat.

PropTrack director of economic research, Cameron Kusher said Melbourne didn’t boom like many of the other cities during the pandemic which has left a number of areas relatively affordable.

“Victorian suburbs are most prevalent on the list, which may seem surprising given the larger price falls to date, but remember that migration is lifting in the state,” Mr Kusher said.

“In Melbourne, price growth has been much more moderate since the onset of the Covid pandemic than in other capitals due to long and repeated lockdowns in 2020 and 2021.

“New South Wales and Queensland suburbs are also prevalent on the list, which speaks to the medium- to long-term fundamentals of these markets, where supply is low and demand is strong.”

In New South Wales, Marrickville was selected as a strong prospect for next year based on amenities, location and family appeal.

Buyers agent, Michelle May said If you haven’t heard of Marrickville in Sydney’s inner-west, it’s worth paying attention to.

“It was voted one of the coolest suburbs in the world by Time Out and it hasn’t looked back since,” Ms May said.

“This old immigrant community retains much of its cultural charm and is renowned for its Vietnamese and Greek eateries, but now possesses an infectious youthful vibe.

“It’s also a destination suburb for microbreweries.

“That’s a clear indication of its cool status.”

Other NSW locations to make the list in NSW included Frenchs Forest, Ashfield, Arncliffe, Alexandria, Glenmore Park, Kingsford, Paddington and Quakers Hill.

Queensland suburbs accounted for 24 places in the Hot 100 list comprising a mix of inner-city, outer-suburban and regional areas.

Toowong in Queensland also topped the list based on its location and investment prospects.

Ray White Group, Managing Director, Dan White said given its location and riverside setting in Brisbane’s inner west, Toowong has several things going for it.

“It’s close to the city and has excellent road, rail, bus and ferry connections and the local hospitality scene is thriving, giving the area a vibrant and youthful feel,” Mr White said.

“And it’s very close to The University of Queensland campus at St Lucia, so it’s popular with students.

“Major gentrification has been well underway for a few years, including a refurbishment of Toowong Village, and numerous new developments popping up.”

South Australia has nine spots on the list including Blakeview, Brooklyn Park, Christies Beach, Craigmore and Kensington.

Western Australia featured Butler, Carlisle, Joondalup and Mandurah while the ACT had Curtin, Narrabundah and Red Hill.

Given the high relative prices across Tasmania, it only had one suburb in the list with North Hobart having good prospects for 2023.

While Darwin also had one suburb that made the list with Bayview included becuase of its access to amenities.

Mr Kusher said that despite many suburbs offering good potential investors looking for the quick gains that were prevalent during 2021 when markets boomed are likely to be disappointed, 

“Remember that housing should be seen as a long-term asset class because of its illiquid nature, and like any asset class, the value of a property will fluctuate over time,” he said.

“It’s about purchasing the right property at the right price, rather than buying or selling because that’s what the herd is doing.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.