Cheap Aussie suburbs set to boom

These are the cheap Australian suburbs where home values are expected to surge, giving those who own there or buy soon rapid equity gains.

These are the cheap Australian suburbs where home values are expected to surge over the coming years.

Another wave of real estate price growth is set to lift prices in many locations around the country greater than their already high prices. Homemakers who already own in certain cheap suburbs and those who buy their soon, could enjoy rapid equity gains, according to a new report.

The study by comparison group Canstar, powered with Hotspotting data, ranked Brisbane the best market for buyers around the country, followed by Adelaide, Sydney, Perth and then regional Queensland to round out the top five.

The report factored in supply levels, buyer demand trends, economic factors like infrastructure spending and a variety of other metrics.

Real estate rising stars: The report compared major markets around the country and ranked their growth prospects. Source: Canstar/Hotspotting.

CHEAP SYDNEY, NSW SUBURBS SET TO BOOM

Sydney was declared one of the best locations in the country to buy a home right now due to the higher chance for value growth.

The Canstar/Hotspotting data, ranked Sydney the third best market for buyers around the country, ahead of the Gold Coast, Melbourne, regional NSW and Perth.

It also identified 10 cheaper Sydney suburbs set to lead the upward charge in values because of growing buyer appeal and improving infrastructure.

Sydney suburbs flagged as “rising stars” included western enclaves St Marys, Casula, Guildford, Minto, Padstow, Mt Druitt and Westmead.

It comes as separate Oxford Economics modelling showed Sydney’s median house price was on track to hit $2m by 2027 due to current growth drivers.

Hotspotting research director Terry Ryder said Sydney home values had more room to grow than many other capitals and regional markets, despite already having some of the highest prices in the world.

Pictured at the home they are selling at Padstow Heights is Stephen Michaels, Magdeleine Hountalas and their son James Michaels. Padstow / Padstow Heights has been revealed by Canstar research group as a hot spot to purchase. Picture: Richard Dobson

Part of the reason was that Sydney was more sensitive to interest rate movements and an anticipated cut in interest rates later this year would unlock more buyer demand, Mr Ryder said.

“The dominant factor is an imbalance between supply and demand,” Mr Ryder said.

“Demand remains strong in Sydney despite affordable issues and the expensive nature of the market. (Sydney) has high levels of wealth so there is a capacity to pay more.

MORE on the cheap Sydney and NSW suburbs set to boom.

CHEAP BRISBANE, QLD SUBURBS SET TO BOOM

Brisbane is expected to top Australia’s real estate market this year with Queensland set to see several areas boom amid major infrastructure spending, according to the report.

Brisbane has now cemented as a property hotspot powerhouse beating last year’s winner Adelaide to top the country.

“We see Brisbane as the likely leader, with Adelaide and Sydney close behind; Perth starting to slip down the rankings, while remaining a growth market; Melbourne doing better than in 2023; Queensland emerging as the strongest regional market; and Canberra and Darwin the weakest locations,” Mr Ryder said of the report.

He said capital cities were seeing a resurgence, with house prices rising at double the rate of that in the regions in the year to March 1.

Brisbane ranked first overall, thanks to its first place for infrastructure spending linked to the Olympics, placing third for sales volumes, quarterly price growth and rental growth and seventh for vacancy rates.

The top 10 suburbs named rising stars in Greater Brisbane were led by Bellbird Park in Ipswich City which is providing affordable options as Brisbane becomes increasingly pricey.

Bowen Hills was named for its unit market, priced in the $400,000s on the doorstep of the CBD, while Cleveland in Redland City was said to be underrated in the past but rising now for its bayside lifestyle.

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CHEAP MELBOURNE, VICTORIA SUBURBS SET TO BOOM

A Melbourne home price surge is tipped to kick off just after the AFL Grand Final, with 10 suburbs set to lead the city into a fourth-quarter comeback.

New research from Canstar and Hotspotting.com.au revealed Melbourne is in the midst of a “huge uplift” in sales volumes, a pattern that has historically preceded major market moves.

Long-considered battler ‘burbs Frankston and Mill Park head a list of 10 “rising star” suburbs based on sales volumes, quarterly price growth, vacancy rates, rental growth and infrastructure spending.

But Hotspotting.com.au founder Terry Ryder said Melbourne would already be in a boom if it weren’t for the state’s “idiot politicians”.

Mr Ryder said the region had low rental vacancy rates, experienced a huge uplift in sales activity and an influx of overseas migrants, all of which were factors that indicated it would perform better in terms of home prices than it did last year.

He added that Victoria’s significant infrastructure spending was taking away qualified and skilled people out of the homebuilding industry at a time when the population was increasing and the state government had building targets to meet.

Frankston is one Victorian location expected to enjoy strong growth in house prices. Aaron Francis / Herald Sun

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CHEAP ADELAIDE, SOUTH AUSTRALIA SUBURBS SET TO BOOM

South Australian real estate prices have boomed in recent years, with many being priced out of the market.

But there are still some places in SA where you can get a good deal, according to comparison site Canstar and market analyst Hotspotting.com.au.

Their Rising Stars 2024 has identified 10 suburbs tipped for future value growth and which present great buying opportunities.

These are Andrews Farm, Elizabeth East, Enfield and Salisbury in Adelaide’s north, Greenwith and Hope Valley in the northeast, the southern suburbs of Christie Downs and Woodcroft, St Clair in Adelaide’s northwest, and Mount Barker in the Adelaide Hills.

All of these suburbs had offered more than 7.4 per cent value growth over the past 12 months, with Andrews Farm leading the pack at 20.1 per cent.

Personal finance expert and Canstar editor-at-large Effie Zahos said a key change in the market was the strengthening of demand in capital cities after a long period of regional areas outperforming big cities.

“During the pandemic, regional areas went up,” she said.

“Now there is a turnaround and capitals are out in front again.”

MORE on the cheap Adelaide and South Australia suburbs set to boom

Originally published as Cheap Aussie suburbs set to boom