Battleground suburbs: where 150 buyers are vying for each home
Competition for homes has reached epic levels in some suburbs, with an average of 150 serious buyers for each available property.
Home seekers have been competing with an average of more than 100 other interested buyers in some capital city areas as speculation mounts over further interest rate cuts and infrastructure projects.
It comes as agents reported a growing sense of FOMO has descended over key areas, leading to an explosion in buyer interest – especially across some of the cheapest and most expensive areas.
Exclusive PropTrack data laid bare just how competitive some areas have become – especially in Sydney and southeast Queensland.
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The research examined the number of buyer inquiries launched off realestate.com.au listings, revealing a severe imbalance between the number of properties listed and how many buyers wanted them.
Individual listings in the most competitive markets attracted an average of 150 motivated buyers, according to the research, levels that indicated stiff competition.
REA Group economist Angus Moore said buyers in these areas would be under more pressure to make high offers and bids.
“The fact we’re seeing solid enquiries in these areas means those homes are probably going to be more competitive,” he said.
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“That’s consistent with the fact we’re seeing consistent price growth across the country at the moment, and that homes are, in general, selling slightly faster than was the case a few years ago when the RBA was raising rates, or pre-pandemic.”
Mr Moore added that competition has been the most intense in affordable markets but this may shift if there are further interest rate cuts.
“In an environment in which interest rates have risen very quickly, and housing affordability has been pushed to very challenging levels, we’d expect to see some buyers looking in more affordable areas. But as that starts to change as mortgage rates fall, that dynamic may also begin to change.”
The neighbouring Sydney suburbs of Werrington and St Marys, set to be a major commuter hub for the coming Western Sydney Airport, were the most competitive suburbs in the country.
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PropTrack indicated individual Werrington listings attracted an average of 150 key inquiries, while in St Marys the average was 144.
“Key” inquiries were those where the buyer had requested documents from the agents, such as contracts of sale, an inspection request or had been in touch with agents via phone, email or text.
Local agents revealed that much of the demand in Werrington-St Marys area was from investors.
These investors often wanted to land bank around vital infrastructure works, hoping that values would skyrocket in the area once the projects were complete.
Recent interest rate cuts have further flamed this speculative activity and encouraged developers to pour into the area.
There was a similar pattern in southern Brisbane suburb Rocklea and Forestdale in the Logan area: investor activity accounted for much of the buyer inquiries.
UPMARKET SYDNEY SOUGHT AFTER
Many of Sydney’s other areas where more than 100 buyers were inquiring on house listings included prestige eastern suburbs such as Coogee, Rose Bay, Bellevue Hill and Clovelly.
There were also more than 100 interested parties vying for houses in North Sydney and, in the inner south, Rosebery.
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Ray White eastern beaches agent Angus Gorrie said some of these suburbs offered more affordable prices than neighbouring areas and could be attracting buyers wanting value.
Many of the buyers currently vying for listings were strongly motivated, he added.
“There are a lot of buyers who have been looking for months and they’re realising there will be a lot more buyers to compete with (once interest rates are cut) and they want to secure something soon,” he said.
Mr Gorrie said some of the current patterns in sales were down to seasonality: there are typically less listings in winter. He expected more listings to come in spring, but there would also be further buyer activity.
AFFORDABLE QUEENSLAND SPOTS SHINE
The Logan-Beaudesert area is a hotbed of activity, with several suburbs making the list.
Woodridge, with a median house price of $674,000, sees 111 buyers per listing, while Loganlea and Browns Plains are not far behind, with 109 and 107 buyers respectively.
These suburbs offer a mix of affordability and convenience, making them attractive to a wide range of house buyers.
MELBOURNE’S NORTHWEST FIRES
Leading the charge in the house market is Dallas, located in Melbourne’s northwest, where the median house price sits at $551,000.
With 87 buyers vying for each listing, Dallas is the epicentre of a property frenzy, drawing attention for its affordability and potential for growth.
Broadmeadows and Coolaroo were the most competitive unit markets, both boasting 77 eager buyers per listing.
Broadmeadows, with a median unit price of $583,000, and Coolaroo, at $551,000, were attracting buyers looking for value and convenience in Melbourne’s northwest corridor.
ADELAIDE’S MOST COMPETITIVE SUBURBS
Stirling, nestled in Adelaide’s Central and Hills region, had 93 buyers competing for each listing. St Peters, where the median house price has soared to $2,193,000, had 79 buyers per listing.
Vale Park and Crafers, both with 72 buyers per listing, are also in the spotlight, with prices in both at about the $1.25 million mark.
Competition was also strong in Adelaide’s northern and southern fringes, where prices were among some of the most affordable in the country.
Elizabeth North, where the median house price was $514,000, had 72 buyers for each property.
Port Willunga, in Adelaide’s South, is another hotspot with 66 buyers per listing and a median price of $849,000.
Originally published as Battleground suburbs: where 150 buyers are vying for each home