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Western Australia has the best property market conditions

Some of Australia’s smaller capital cities and their associated regional areas have the strongest property markets in the country, according to new analysis.

According to the Hotspotting Price Predictor Index for Winter 2023, Perth has maintained its status as the nation’s busiest and most buoyant property market, with 71 per cent of suburbs recording strong levels of sales activity.

Of those, 59 suburbs are rising, 72 show consistency and seven are recovering.

Only 57 markets are deemed to have hit a plateau, down from 68 suburbs three months ago.

Perth’s strong sales activity has put upward pressure on prices and recent data from SQM Research recorded an 11.5 per cent increase in Perth’s house price index in the 12 months to May 2023.

Hotspotting Director Terry Ryder said the latest edition of the Property Price Index (PPI) had found growing evidence of recovery in a variety of big and small markets around the nation. 

But he said Perth was the standout for homebuyers and investors, with strong sales activity and rising prices.

“Western Australia, South Australia, and Tasmania – headed by their capital cities Perth, Adelaide, and Hobart – are the jurisdictions with the strongest market pulses,” Mr Ryder said.

The lower and middle sectors of the Perth market are maintaining nation-leading demand levels.

National Growth Star

The City of Gosnells continues to attract solid demand, and Hotspotting General Manager Tim Graham revealed the municipality had been named this quarter’s National Growth Star in the index.

He said while it may not be fashionable and it’s certainly not upmarket, the City of Gosnells was a standout for attracting strong buyer demand as it offers affordability in an area with good amenities. 

“In simple terms, it’s what the mainstream buyer is looking for, whether they’re home-buyers or investors,” he said. 

“Of the nine Gosnells suburbs in our analysis, eight have positive rankings – four rising, three consistency and one recovering markets. 

“Most of these locations have median house prices in the $300,000s and $400,000s, providing a level of affordability that Melbourne and Sydney residents can only dream about – and it’s attracting investors from the eastern states in large numbers, too.”

National Growth Star Top 10

In the National Growth Stars Top 10, four municipalities were in Western Australia, with the cities of Canning and Stirling also making the list, along with Mandurah.

“Perth and regional WA have continued to deliver more areas with rising sales activity than anywhere else in the nation, while Adelaide and regional South Australia are characterised by highly consistent buyer demand, rather than rising sales activity,” Mr Graham said. 

Most consistent market

Meanwhile, Nairne, in South Australia, was named the most consistent market in the country.

Mr Ryder said the consistency markets were those that recorded consistent sales quarter by quarter. 

“These locations represent safety for investors,” he said.

“They are usually not boom markets but have the valuable quality of solidity.”

Mr Ryder said such markets usually have good price growth over time. 

“The nation’s most consistent market is Nairne, in South Australia, with a median house price of $580,000.” 

Mr Ryder said Nairne, in the Mount Barker region of the Adelaide Hills, has made between 30 and 39 house sales per quarter since 2016. 

“Nairne’s median house price also rose 24 per cent in the 12 months to April 2023, including 4.5 per cent in the most recent quarter,” he said. 

“Its long-term capital growth rate is also nine per cent per year. 

“Nairne is located about 31 kilometres from Adelaide – so well within commuting distance – and is one of South Australia’s earliest European settlements.”

South Australia

Also in South Australia, the City of Salisbury scored a place among the suburbs listed among the new National Top 10 list for municipalities with notable numbers of growth suburbs.

Mr Graham said there were few markets that performed as consistently as the City of Salisbury, which made the Top 10 municipalities for the seventh consecutive quarter.

“The Salisbury LGA, which forms a strong precinct with the City of Playford in the city’s affordable north, continues to have a solid market,” he said. 

“Ten of the 16 suburbs have positive rankings, including four rising suburbs. 

“Sales activity in Para Hills West (median price $525,000) has been rising, as has been Salisbury Heights ($560,000). 

“Consistency suburbs include Valley View ($615,000) where quarterly sales over the past three years have been solid and Para Hills West also makes our National Top 75 list.”

Tasmania

As for Tasmania, Mr Ryder said markets in the capital, Hobart, as well as in regional areas were very much in recovery mode, following a year of steady decline.

“The number of locations with negative classifications has halved from 65 in our autumn 2023 report to 33 in this winter survey,” he said.

“In fact, 23 of those formerly struggling markets are now ranked as recovering markets, while there has also been an increase in the number of rising markets and consistency markets.” 

In the Greater Hobart area, most of the local government areas have positive statistics, Mr Ryder said. 

“In the Kingborough LGA, all five are positive, including Blackmans Bay (median prices $840,000 for houses and $600,000 for units), while Kingston (median prices $805,000 for houses and $600,000 for units) has also had rising quarterly sales,” he said.

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Kylie Dulhunty

Kylie Dulhunty is the Editor at Elite Agent.