110 suburbs to boom in 2023: See what it means for your mortgage
More than 100 suburbs across Australia are expected to see a boom. See the list and calculate what that means for your home.`
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More than 100 suburbs across Australia are tipped to defy skyrocketing interest rates and buck the real estate downturn in 2023.
Due to the cost of living crisis and dramatic spike in interest rates — which also saw the RBA lift the cash rate for the eighth time by 25 basis points to 3.1 per cent before Christmas — the current real estate downturn is expected to continue in many markets across the country, well into next year.
However, according to Canstar’s Rising Stars report for 2023, 110 suburbs from coast to coast and north to south will experience significant growth next year – locations prospective homebuyers and investors should have on their list from January 1.
The report takes a date driven look at the year ahead for Australia’s biggest property markets across 14 key jurisdictions, comprising eight capital cities and six regional states and territories.
By using a series of forward-looking key metrics, the Report ranks each jurisdiction based on its potential for price growth and identifies 110 ‘Rising Star’ towns and suburbs across the country buyers should have on their shopping lists. 81 of these suburbs have a median price under $600,000.
Here’s what it means for each state – and try our new calculators below to get an indication of what it may mean for you.
BOOM SUBURBS IN NSW: WHAT HOMEBUYERS CAN EXPECT
Both Sydney and regional NSW have seen sharp declines in prices in 2022.
There are growing signs the worst of the downturn is over. However the downturn is still expected to continue in NSW and metro regional markets in 2023.
Campsie heads a list of 10 Western Sydney postcodes set for price growth in the year ahead, according to the annual Canstar Rising Stars Report, powered by Hotspotting,
Campsie’s unit market had the most potential, said Hotspotting publisher Terry Ryder, who co-authored the report and selected the suburbs based on key metrics of sales activity, quarterly price growth, vacancy rates, rental growth and infrastructure spending.
“The Canterbury Bankstown (LGA) is a well connected market with relative affordability. Apartments at a fraction of the price of nearby houses have growing buyer demand,” Mr Ryder said.
Next on the list was Fairfield, followed by Georges Hall, Granville and Jamistown.
BOOM SUBURBS IN VICTORIA: WHAT HOMEBUYERS CAN EXPECT
Melbourne’s affordable and “relatively affordable” suburbs will be the stars of the 2023 property market as rising rates and the cost of living continues to heap pressure on household budgets.
Canstar’s report ranks Melbourne a lowly 13 of 14 nationwide regional and capital city markets for next year, with another difficult year looming.
Regional Victoria has also passed its peak according to the report — powered by Terry Ryder’s Hotspotting — now at number 10 on the list, topped by Adelaide after years of strong growth.
BOOM SUBURBS IN QLD: WHAT HOMEBUYERS CAN EXPECT
Ryder Research Resources managing director and property analyst Mr Ryder said the Brisbane housing market would bounce back from this year’s slowdown to become a growth market once again in 2023.
“Few markets across Australia have better prospects for growth than Brisbane’s,” Mr Ryder said.
“2023 is going to be a growth year for property — not a boom year like 2021, but there will be more places seeing prices rising than falling, and Brisbane and regional Queensland will be at the forefront of that.
BOOM SUBURBS IN SA: WHAT HOMEBUYERS CAN EXPECT
Adelaide has been identified as the Australian market with the best prospects for capital growth, in a new report by the nation’s biggest financial comparison site.
The Canstar report identified Adelaide as the best place in Australia to buy for those looking for capital growth.
Of 14 markets analysed across then country, Adelaide ranked number one – up from the ninth place it was ranked in last year’s report. It beat Brisbane, Perth, regional Queensland and regional Western Australia, which rounded out the top five, while regional South Australia was identified as the eighth best market in Australia.
Mr Ryder, said while Adelaide had flown under the radar for many years, when comparing it to the meteoric rises and drops seen in the eastern cities, it was now well and truly in investors’ crosshairs.
“Previously regarded as a city which failed to deliver growth in its economy, population and property prices, Adelaide has been transformed by significant changes in its economy,” he said.
“It has claimed for itself the status as the hi-tech innovation capital of Australia, with many national and international businesses based there.
“It also leads the nation in the alternative energy space and is a city of growing importance in the education and defence industries.
“Buyers have targeted Adelaide for its relative affordability, higher-than-average yields and good growth prospects.”
The top 10 suburbs singled out as rising-star suburbs were Christies Beach, Craigmore, Dover Gardens, Elizabeth Vale, Gilles Plains, Kurralta Park, Magill, Munno Para, Salisbury East and Seaford Meadows.
Originally published as 110 suburbs to boom in 2023: See what it means for your mortgage
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