New data has unearthed the best real estate buyers’ markets around Australia, where a surge in listings is seeing the pendulum swing back in favour of potential purchasers.

Analysis by PropTrack has identified the suburbs with the biggest annual increases in for-sale listings in the 12 months to 31 July, with those looking for a home in Sydney and Melbourne especially spoilt for choice.

But PropTrack economist Angus Moore said buyers in many parts of the country face improved conditions at the moment.

“Buyers have more choice, buyer demand has come off a bit, and homes are taking a bit longer to sell,” Mr Moore said. 

“All of that means things are a bit less competitive and buyers aren’t going to have to make as quick decisions as they were earlier in the year.”

How long it remains a good time to buy remains to be seen, with Mr Moore expecting activity to pick up as the traditionally busy spring selling season kicks into gear.

For now, those in the market for a home can choose from a broader range of options – and then buy without the kind of frenzied scenes of 2021, Apollo Auctions director Justin Nickerson said.

“The buying opportunities have become more plentiful, and in many cases without the white-hot levels of competition experienced in all markets in 2021,” Mr Nickerson said.

At an auction level, the average number of registered bidders has slipped from 8.2 in 2021 to 2.9 this year, he said. 

“Although, interestingly, this is still higher than the pre-pandemic market in 2019 when it sat at 2.1 average registered bidders. 

“The dip in registered bidders has been coupled with the rise of listing numbers across the board, resulting in more favourable buying conditions than were previously available.”

See the data for your state:

• New South Wales
• Queensland
• Victoria
• South Australia
• Tasmania
• Western Australia

New South Wales

The extraordinary level of price growth across Sydney over the past few years has left many would-be buyers disappointed.

A more recent increase in listings in key suburbs is seeing the balance even out, said Ben Plohl, founder and principal of BFP Property Buyers.

“There are some great buying opportunities for those who were potentially priced out last year or struggled to secure a home,” Mr Plohl said. “Investors are also out in force looking to snatch good opportunities.”

Take Beverly Hills in Sydney’s south, which is a suburb surrounded by higher priced neighbourhoods, meaning buyers have the opportunity snap up a home in a good area that’s more affordable.

That’s making the area popular with those who want the same high level of amenity and exceptional transport links next door with a lower price tag, James Kalantzis from Ausrealty said.

And with house listings up 218%, there’s plenty of opportunities on offer for those ready to act.

“Buyers are willing to pay premiums to secure properties in great areas such as Beverly Hills,” Mr Kalantzis said.

“For example, we recently sold 26 Mountview Avenue for $1.95 million, which is a result that coincides with pre-interest rate rise pricing.”

He’s confident about the future prospects of the area, given its location, dwelling type, and demographic shifts.

“Buyers wanting to purchase property in premium suburbs, who are focused on a long-term hold, have a great opportunity right now,” he said.

“History and market trends show great suburbs such as Beverly Hills jump in value over time.”

Closer to the city, the inner-western hotspot of Summer Hill is offering more choice recently than those in the market would be used to.

It has long been popular with families thanks to its plethora of parks, good schools, and character homes on big blocks, Mr Plohl said the area remains in demand.

“Summer Hill is well known for its competition among buyers but it’s presenting great options,” he said of the increase in house listings of 150%.

NSW metropolitan suburbs with the most choice

NSW regional suburbs with the most choice

Queensland

Anyone looking to buy a home in southeast Queensland over the past few years will know how tight things have been, with intense competition and very low levels of supply.

“The Queensland market has been one of the strongest in the country,” said Nicola McDougall, chair of the Property Investment Professionals of Australia and author of the book The Female Investor.

“There was far more demand from buyers near and far than supply available, while now – as is usual of market cycles – we’re seeing the volume of listings rise.”

Conditions are beginning to swing back in favour of purchasers, with an influx of listings in pockets right across the region, she said.

The PropTrack data shows a number of Sunshine Coast suburbs with strong increases in listings, which Ms McDougall said is unsurprising given the “significant” price growth of recent years.

“Some of these suburbs, such as Peregian Beach (house listings up 196%), Warana (house listings up 121%), and Coolum Beach (unit listings up 68%) are highly desirable beachside area that have increasingly been on the radar of savvy homebuyers and investors,” she said.

House listings in the Glass House Mountains are up 141%, which local agent Dan Clarke from Clarke & Co said shows a shift from a sellers’ market to one favouring buyers.

“There has been plenty of activity in our local market with properties coming onto the market every day,” Mr Clarke said. “I do think it makes it a great time to buy.”

The area where prices aren’t softening is in the entry level acreage market, with a continued steady arrival of tree-changers and limited supply keeping prices high, he said.

In Brisbane, the suburb of Holland Park has seen a 96% increase in the number of house listings, while unit listings are up 133%, offering would-be buyers plenty of choice.

Craig Bullen from RE/MAX First Residential said current market conditions offer “excellent opportunities” for upgraders to purchase in a more stable environment.

“Based on the past couple of properties I have sold in Holland Park, the market is still very strong for established family homes,” Mr Bullen said. 

One property, a four-bedroom home at 57 Amethyst Street, had almost 50 groups through in its first week of being listed, prompting multiple offers.

In the Queensland capital’s north, burgeoning Stafford is offering buyers lots of opportunity, with unit listings rising by 48%.

Local agent Adam Stefan from LJ Hooker said townhouses and units have been selling fast, with strong numbers through open homes and multiple offers on quality stock.

“I believe it has a lot to do with the affordability of these properties, not only from a price point, but also when compared to how much rents have increased in the area,” Mr Stefan said.

The area’s gentrification over recent years, and its location just 7km from the CBD, is also making Stafford more attractive to a wider pool of buyers.

“There are lots of new cafes and restaurants that have popped up, and a new brewery, which has seen the demographic move,” he said.

“We’ve seen older post-war homes where people have lived for 60-plus years being renovated or knocked down as younger homeowners move in. I expect this gentrification to continue for many years to come.”

West of the city, the family friendly suburb of Graceville has seen house listings rise 127%.

Lisette Schults-Rand from Ray White said her patch tended to be more protected from market shifts than elsewhere, and this period has been no different.

“We’ve seen prices overall continue to be strong still, with good inspection and bidding numbers across the board,” Ms Schults-Rand said. 

The spring selling season looks set to be as busy as usual, with a number of good quality listings hitting the market, she said.

“Buyers have more choice than most times of the year and are able to move into their new homes and settle before the holiday season.”

Queensland metropolitan suburbs with the most choice

Queensland regional suburbs with the most choice

Victoria

The eastern Melbourne suburb of Mont Albert has proven to be somewhat fickle of late, local agent Jeremy Desmier from Fletchers said.

“We’re still observing strong results for highly renovated and near-new A-grade properties, as inflated building costs and supply chain uncertainties force those with plans for major renos or new builds to favour something that’s already done,” Mr Desmier said.

“B- and C-grade properties are very price sensitive and sellers looking to match an ‘over-the-top’ price that an equivalent property might’ve achieved six months ago in the boom are likely to be disappointed.”

Buyers in the market for a unit have more choice thanks to a 64% increase in listings, which Mr Desmier said made it a great time to buy.

“I’m not as pessimistic as some of the ‘experts’ out there about the market continuing to soften,” he said.

“There are good buys available and even if the market does dip a little in the short-term, it’ll invariably be followed by a rebound at some point.

“Buying the right home at a fair price that you’ll enjoy living in makes it somewhat irrelevant what the market does in the next three months or six months.”

Meanwhile, buyers sniffing around Ivanhoe East are also enjoying a more balanced market, with house listings up 109%.

Gordon Hope from Nelson Alexander said the extra choice made now a prime time to purchase in what is a sought-after pocket.

“We are still seeing some great activity in the market, most notably strong demand for quality family homes neighbouring schools, parklands, and amenities,” Mr Hope said.

Those types of properties have been in short supply in recent times, so new stock is merely meeting still-high demand, he said.

“Premium homes here don’t get cheaper – they just become more attainable, which is why buyers should seize these opportunities we are seeing today.”

Victoria metropolitan suburbs with the most choice

Victoria regional suburbs with the most choice

South Australia

Markets throughout the South Australian capital have been running hot in the past few years – and prices continued to nudge upwards over much of 2022.

But an increase in listings is providing would-be buyers with a prime opportunity to act, particularly in prestigious pockets where competition has been strong.

Colin Lee, founder of Inspire Realty, said Salisbury East offers a lot of opportunity for both homebuyers and investors. House listings there are up 67%, while unit listings are up 67%.

“Salisbury East has an all-time low rental vacancy rate of 0.14%, which is just extraordinary,” Mr Lee said. In addition, yields are at an attractive 4%.

“There are good-sized blocks with established homes, which bodes well for renovation potential and long-term capital gains. And there’s good highway access and a train station.”

Also in the city’s northern region, Hope Valley is also an area with solid prospects, and interested buyers are enjoying a 68% increase in house listings.

“Housing there is well-established with some good-sized allotments, making for family friendly living,” Mr Lee said.

“There’s also comprehensive retail amenity with Hope Valley Shopping Centre. The reservoir and its surrounds are an attractive local feature too.”

South Australia metropolitan suburbs with the most choice

South Australia regional suburbs with the most choice

Tasmania

A stand-out performer during the boom was Tasmania, with prices right across the state – and particularly in Hobart – rising sharply.

Buyers currently in the market are enjoying more choice, with listings up in a number of key pockets.

In the capital, suburbs with big increases in house listings include Primrose Sands (up 142%) and Sandy Bay (up 119%), while regionally, South Launceston house listings are up 100%.

Sam Powell, an analyst and property coach at Hello Haus, said some tightly held suburbs are now seeing buyers afforded more choice, making it a good time to act.

“To break it down, in Sandy Bay, the lowest number of listings in the past 12 years was in September 2021, with 32 listings, while the highest was in April 2021 with 202 listings,” Mr Powell said.

“In July 2022, Sandy Bay was sitting at 65 listings, so well below the historic high, but still below the 12-year average of circa 100 listings per month.”

Some of the biggest increases in listings are in similarly prestigious pockets that remain sought-after thanks to their high level of amenity, land scarcity, and location.

“Opportunistic buyers searching for properties in these desirable locations will not only see an increased range of asset selection but also a wider array of negotiation tactics to use,” Mr Powell said.

Tasmania metropolitan suburbs with the most choice

Tasmania regional suburbs with the most choice

Western Australia

The West Australian market is currently defying cooling market trends seen in eastern states, with prices largely remaining steady.

However, active buyers are beginning to enjoy more choice in a number of suburbs. At the top of the list is the Perth suburb of Karnup, with house listings up 141%.

PK Gupta, managing director of Consulting by PK, said the suburb’s location makes it increasingly desirable.

“Neighbouring suburbs such as Port Kennedy and Secret Harbour have been rising in value rapidly due to their affordability and attraction with both locals, being next to the water, and also east coast investors seeing good value,” Mr Gupta said. 

“But these suburbs have low stock on the market, so the demand may shift inland towards Karnup as buyers look for deals under $500,000.”

Western Australia metropolitan suburbs with the most choice

Western Australia regional suburbs with the most choice

Originally Published: Shannon Molloy | realestate.com.au | 2 September 2022

https://www.realestate.com.au/news/unearthing-the-215-best-buyers-markets-in-australia-where-purchasers-have-more-power/