Top Suburbs for Rising Australia House Prices in 2024
The Australian real estate market continues to captivate investors and homeowners alike, with house prices showing remarkable resilience and growth potential. As we enter 2024, the housing market in Australia presents a landscape of opportunity, driven by factors such as population growth and shifting urban dynamics. This evolving scenario has a significant impact on property values across various suburbs, making it crucial to identify areas poised for substantial appreciation.
In this article, we’ll explore the top suburbs in Australia where house prices are expected to rise in 2024. We’ll look at affordable growth areas that offer hidden opportunities, coastal hotspots that serve as seaside investment havens, inner-city suburbs experiencing an urban renaissance, and outer suburbs that represent the new frontier of real estate development. By examining these diverse locations, readers will gain valuable insights to help them navigate the Australian property market and make informed decisions about where to invest or purchase a home.
Affordable Growth Areas: Hidden Opportunities
As the Australian property market evolves, affordable growth areas are gaining significant traction. These hidden gems offer investors and homebuyers the opportunity to enter the market at a lower price point while still benefiting from potential capital growth.
Overview of Affordable Markets
The current real estate landscape has a shortage of high-quality stock, leading to resilient house prices [1]. However, some areas are experiencing weaker rental conditions due to higher supply and reduced demand [1]. This situation has created pockets of affordability in various regions across Australia.
Top Affordable Suburbs with High Growth
Several regional centers are emerging as attractive investment options:
- Toowoomba: This Queensland city offers stability and economic growth [2].
- Ballarat: Combining historic charm with modern amenities, it’s becoming a regional hotspot [2].
- Geelong: With its waterfront appeal and ongoing development, Geelong presents promising opportunities [2].
- Bendigo: Known for its cultural richness, it attracts investors seeking a blend of history and growth [2].
Why Affordable Areas are Gaining Traction
Buyers are increasingly chasing affordability across all market jurisdictions in Australia [3]. The most affordable segments of the market are leading in terms of growth and demand [3]. These areas often offer good prospects for capital growth due to their proximity to desirable features or upcoming infrastructure projects [3].
Coastal Hotspots: Seaside Investment Havens
Australia’s coastal property markets are thriving, attracting investors and homebuyers with stunning beaches, vibrant communities, and high quality of life. These areas offer a unique blend of natural beauty and modern amenities, making them highly desirable for those seeking a relaxed yet luxurious lifestyle [4].
Coastal Property Market Trends
The allure of a beachside lifestyle has a significant impact on coastal property markets. These locations offer a sense of community, natural beauty, and recreational opportunities that are hard to find in urban settings [4]. The COVID-19 pandemic has accelerated the shift towards remote work, allowing more people to live further from major cities without sacrificing their careers [4].
Top Performing Coastal Suburbs
Many coastal areas are experiencing strong property price growth, making them attractive for investors looking for solid returns [4]. Regional coastal suburbs in Australia are particularly sought-after, offering a combination of natural beauty and modern amenities.
Factors Driving Coastal Property Growth
Several factors contribute to the growth of coastal property markets:
- Lower population densities
- Cleaner environments
- Slower pace of life
These elements contribute to a higher quality of life in coastal regions, driving demand and property values [4].
Inner-City Suburbs: Urban Renaissance
Australia’s inner-city suburbs are experiencing a significant resurgence, with many areas showing strong growth in population and property values. The City of Melbourne leads the pack with a remarkable 10.6% growth rate, welcoming 17,068 new residents [5]. This trend is mirrored in other capital cities, with Perth growing by 7.4% and Adelaide by 6.6% [5]. The return of international students has played a crucial role in this urban renaissance, particularly benefiting areas like Ultimo in Sydney, which saw a 19% population increase [6].
Top Growing Inner-City Areas
- Melbourne CBD: 10.6% growth
- Perth CBD: 7.4% growth
- Adelaide CBD: 6.6% growth
- Yarra (Melbourne): 5.5% growth
- Port Phillip (Melbourne): 5.2% growth
Reasons for Inner-City Popularity
The appeal of inner-city living lies in the concept of “20-minute neighborhoods,” where residents can access work, leisure, and essential services within a short distance [1]. This lifestyle attracts affluent and aspirational individuals, driving property values upward. The post-COVID world has heightened the demand for such livable, amenity-rich areas, making inner and middle-ring suburbs increasingly desirable for both homeowners and investors [1].
Outer Suburbs: The New Frontier
Australia’s outer suburbs are emerging as the new frontier for property investment, offering ample space and potential for growth. These areas are attracting attention due to their capacity to support well-planned, thriving communities with a focus on liveability and sustainability [7].
Outer Suburban Market Overview
The outer metropolitan suburbs have a unique advantage in supporting the growing trend of remote work. With less reliance on city centers, these areas can develop robust local economies that offer both residential and employment opportunities [7]. This shift has a significant impact on property values and investment potential.
High-Growth Outer Suburbs
Several outer suburbs are showing promising growth:
- Parramatta: Transforming into a bustling economic hub with government investment in infrastructure [2].
- Newcastle: Offering stunning beaches and a thriving local economy [2].
- Wollongong: Blending coastal charm with economic resurgence [2].
- Maroochydore: A rising star in the Sunshine Coast’s property market [2].
- Southport: Evolving into a key player in the Gold Coast’s property market [2].
Drivers of Outer Suburban Growth
The growth in outer suburbs is driven by several factors:
- Abundant space for greenfield development [7].
- Opportunity to implement sustainable urban design principles [7].
- Strategic investment in infrastructure [7].
- Creation of mixed-use developments blending residential, commercial, and recreational spaces [7].
These factors contribute to the increasing appeal of outer suburbs for both homebuyers and investors.
Conclusion
FAQs
What areas in Australia are expected to see significant property growth in 2024?
In 2024, property prices across Australia’s capital cities are expected to rise, with house prices increasing by 4 to 7 percent and unit prices by 3 to 5 percent. By the end of the 2025 financial year, projections indicate that the median house price in Sydney will exceed $1.7 million, while in Perth it will reach over $800,000, as per the Domain Forecast Report.
What are the property price predictions for Australia in 2024?
According to KPMG’s analysis, the residential property market in Australia in 2024 is likely to experience slower growth compared to 2023, due to a cooling market. However, national house prices are still expected to rise by 5.3 percent, and unit prices by 4.5 percent.
Which Australian cities are predicted to lead the next property boom?
As of mid-June 2024, Perth and Brisbane are anticipated to lead the next property boom in Australia. These cities are expected to record significant price increases, outperforming the traditionally strong markets of Melbourne and Sydney, based on CoreLogic data.
What are the house price forecasts for Australia in 2025?
By the end of the 2025 financial year, house prices are forecasted to exceed $1.7 million in Sydney, nearly $1 million in Brisbane, and $800,000 in Perth. Additionally, by the close of the 2025 calendar year, Adelaide is expected to reach a median house price of $1 million.
References
[1] – https://propertyupdate.com.au/australian-property-market-predictions/
[2] – https://blogs.liviti.com.au/best-suburbs-for-investment-property-2024/
[3] – https://www.canstar.com.au/home-loans/top-property-growth-locations/
[4] – https://ambyy.com.au/discovering-australias-coastal-property-markets/
[5] – https://blog.id.com.au/2024/population/population-trends/inner-city-areas-of-australia-are-booming-regional-population-growth-2022-23-update
[6] – https://propertyupdate.com.au/these-are-australias-fastest-growing-areas/
[7] – https://ngaa.org.au/unlocking-the-potential-of-outer-suburbs
