Hot 100 suburbs for property investors

Several suburbs in Perth and Adelaide outperform most other Australian locations, earning them places on the list of the Hot 100 locations for home hunters.

Western Australia and South Australia weren’t the only states highlighted on the realestate.com.au list with NSW’s Glenmore Park, Victoria’s Mentone and Queensland’s Brighton three of the country’s top 100 locations forecast to outperform others in 2024 and beyond.

The top suburbs were included in the annual realestate.com.au Hot 100 and selected based on several economic and local growth drivers such as supply and demand, population growth and infrastructure projects, which are expected to boost prices in the short-to medium-term.

PropTrack director of economic research Cameron Kusher (pictured above left) said the list highlighted ample opportunities “right across the country”.

“There are a lot of things that make a suburb ‘hot’, it can be in a desirable location that drives more demand, it can be undergoing gentrification to make it more attractive, it can be relatively affordable to other surrounding suburbs,” Kusher said.

“Of course, there are always individual suburbs and locations that will either underperform or overperform.”

PropTrack data predicts home price growth

PropTrack’s latest Property Market Outlook report predicts home prices across the country to grow between 1% and 4% over the next 12 months, slightly slower than the 5.5% pace of growth recorded so far in 2023.

Perth and Adelaide are expected to outperform the other capital cities in 2024.

“This really reflects the fact that Perth and Adelaide have seen some of the strongest price growth over the past year and an expectation they will outperform next year,” Kusher said.

“We also anticipate that Adelaide and Perth will be the two capital cities with the strongest price growth next year.”

The key growth drivers include affordability, amenities, family appeal, location, investment prospects, gentrification, population growth, demographic change, and infrastructure.

2024 trends: Affordable capitals, regional resurgence

PropTrack economist Anne Flaherty (pictured above right) said family-friendly suburbs dominate the Hot 100 list, especially those with excellent access to schools, parks, and shopping precincts.

“Most of these suburbs also boast excellent transport infrastructure, whether that be access to road networks or public transport such as trains or buses,” Flaherty said.

“Many of these suburbs are also relatively affordable, offering the chance to buy in at below the median price of their respective capital cities.”

Hot 100 report shows strength of regional markets

Despite underperforming the capital cities over the past year, Flaherty said regional suburbs made up around 40% of the list.

Flaherty said regional areas that made the top 100 tend to be in, or close by, major regional centres – for example Ballarat and Geelong in Victoria, Southport and Townsville in Queensland, and Dubbo in NSW.

“These are locations with well-established local economies, key infrastructure, and employment across a diverse range of industries,” Flaherty said.

“They also tend to be in regions experiencing population growth, which will support property prices by contributing to demand for housing. “

Flaherty said lifestyle factors were another drawcard that brought buyers to the regions.

“Post-COVID, a higher proportion of the workforce can work remotely, and this has enabled more people to explore living regionally. Furthermore, with housing affordability deteriorating in many of Australia's larger capital cities, this is likely to draw more buyers out to regional areas as well.”

Flaherty said people tended to focus their property searches on the areas they already knew well. However, lists such as the Hot 100 played an important role in helping buyers to identify other potential suburbs that may offer the kinds of lifestyle attributes desired.

“At a time when the supply of homes for sale is relatively limited compared to buyer demand, and affordability is deteriorating, more buyers are expanding their searches across a broader range of suburbs,” Flaherty said.

Kusher said the regions selected also often had diversified economies.

“These tend to be key drivers in regional markets and reflect our expectations of the types of locations in regional areas likely to see the strongest price growth next year,” Kusher said.

A recent report by removalist booking platform Muval, reinforced the fact that Australians are being greatly impacted by the cost-of-living crisis, leading many to relocate in order to alleviate financial burdens or pursue more lucrative job opportunities and affordable housing

The Hot 100 list was compiled by a panel of industry experts – including the heads of major agency groups, buyer’s agents, researchers, investors and an academic with the use of PropTrack data and economic analysis.

A recent report from PropTrack highlights Australian locations where it’s cheaper to buy property than to rent it.

The PropTrack Market Insight report found 36% of Australian homes are cheaper to buy than rent.

You can access the full Hot 100 property list here.