Property market shock: Australia’s real estate winners exposed

Forget the usual suspects of Sydney and Melbourne – Australia’s property market has thrown up some truly astonishing surprises, with new, exclusive research pinpointing the nation’s real hotspots where homes are flying off the shelves and prices are soaring.

And if you’re looking for a property goldmine, you’re probably looking in the wrong states.

A new Hotspotting analysis has unveiled the “hottest” property markets across the country, revealing that three states – South Australia, Queensland and Western Australia – are dominating the top performers.

Crucially, these aren’t the traditionally expensive capital cities, but rather more affordable areas that are delivering exceptional returns.

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Hotspotting Director Terry Ryder explained that their research meticulously considered locations boasting a powerful combination of factors: low days on market, minimal vacancy rates, solid rental yields, and a consistent history of property price growth.

“With the exception of Crafers in the Adelaide Hills, all of the other suburbs have median prices below $1m for houses, and well below that again for units,” he said.

Notably, all top performers are located outside of New South Wales and Victoria.

Source: Hotspotting.com.au

Leading the charge, in a tie for the number one position, are units in Douglas, Townsville. These units are being snapped up in an average of just 13 days on market, boast a median unit price of a mere $350,000, and have seen an impressive price growth of nearly 17 per cent over the past year.

Sharing the top spot are houses in Joondalup, Perth, also recording a blistering 13 days on market.

With a median house price of $901,000, these homes have experienced nearly 12 per cent median price growth in the past year.

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Adelaide and the Adelaide Hills featured prominently on the list. Picture: Brenton Edwards

Other standout performers include Hawthorndene in Mitcham, South Australia, with homes selling in just 14 days, and Doubleview in Stirling, Perth, where properties are on the market for an average of 16 days.

Mr Ryder’s findings strongly support his long-held hypothesis: it’s the more affordable property markets and regions that consistently deliver the best price growth over the medium to long term.

“It’s highly unlikely that many property pundits picked Acacia Ridge in Brisbane or Port Willunga in Adelaide to be market outperformers a few years ago, but here we are,” he said.

“Not only are all of these markets currently hot, but they have recorded above average annual median price growth over the past five years – ranging from 7.18 per cent in Douglas to 15.88 per cent in Port Willunga.

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Brisbane and regional Queensland, including Townsville, were also flagged as “hot” suburbs.

“Every single property buyer and investor would be very happy with this type of property growth but many probably bought in much more expensive markets.”

PIPA Chairman Lachlan Vidler highlighted another critical aspect of these booming markets: their incredibly tight rental conditions.

“Another telling element of this research is the fact that each one of the top locations has a vacancy rate of less than two per cent with some, such as Hawthorndene, Doubleview and Shaw, recording a vacancy rate of zero,” he said.

“A vacancy rate of three per cent is considered a balanced rental market and these top 10 areas are nowhere near that level, which is why their rents also increased over the past year, including 17 per cent in Acacia Ridge and 28 per cent in Crafters.”

Mr Vidler said more investors were also taking a nationwide view when considering where to purchase next.

“Working with qualified property investment professionals, who are appropriately licensed in the states and territories they operate in, as well as having plenty of experience and successful results for their clients, is imperative to prevent costly mistakes when purchasing in unfamiliar or interstate markets.”

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