Sales volumes rising in NSW, but WA’s hot run could be over

Sales volumes are on the rise across a host of suburbs in NSW, however, demand in Western Australia might be starting to fall.

The Hotspotting Supercharged Suburbs report looked at suburbs that have seen rising sales volumes for the past four quarters.

New South Wales leads the charge with 26 suburbs making the cut, along with 10 suburbs in Victoria, six in South Australia, five in Queensland, and three in the ACT. 

This time last year, Western Australia had more than one-third of all supercharged suburbs, but failed to secure an entry this year.

Some of the top suburbs from NSW include Surry Hills, Woolloomooloo, Paddington, Darling Point, Bondi and Botany.

Top regional suburbs in NSW include Albury, Bomaderry, Brighton-le-Sands, Corrimal, Gregory Hills, Kurri Kurri, Lake Munmorah, Lavington, Nelson Bay, North Nowra, Oxley Park, Sanctuary Point, Sussex Inlet, Swansea, and Taree.

Hotspotting General Manager, Tim Graham, said the market resurgence in parts of Sydney and Regional NSW began last year, with solid activity being reported in a number of locations.

“We believe the top supercharged suburb in the nation is currently Surry Hills in Sydney City, which is indicative of a number of key trends in Australian real estate,” Mr Graham said. 

“Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon.

“Sales numbers have been trending sharply upwards, with the March 2024 quarter numbers double those in the March 2023 quarter.” 

He said the median unit price has increased 7.1 per cent and the median house price is up 21 per cent.

Rents are also growing strongly, up 14 per cent for units and 16 per cent for houses in the past year.

Hotspotting Director, Terry Ryder, said contrary to the negative market narrative currently prevalent about Melbourne, the Victorian capital city had a number of suburbs with rising sales activity and plenty of upside potential.

He said the top suburbs in Melbourne include Deer Park and Sydenham.

While in regional Victoria they include Bacchus Marsh, Ballarat East, Darley, Harkness, Kennington, Leopold, St Leonards, Torquay.

“The Melbourne market is poised for better price growth in 2024 than the previous two years,” Mr Ryder said. 

“The median house price grew only 3 per cent in the 12 months to May, but sales activity revived late in 2023 and early 2024, boosted by a solid economy and high population growth.

“Located less than 20 kilometres from the CBD, Deer Park has recorded five consecutive quarters of rising property sales, with housing affordability one of its calling cards for investors and homebuyers.”

Mr Graham said Adelaide and regional South Australia continued to be two of the nation’s most promising markets, including Glenelg.

He said Ascot Park, Flinders Park, Glenelg, Hove, and Morphettville in Adelaide were the best, along with Wallaroo.

“Adelaide sales activity is 8 per cent higher than a year earlier, despite a 12 per cent annual decline in listings of properties for sale,” he said. 

“Generally, the Adelaide market is displaying the consistency that has made it a national leader on price growth, with 31 per cent of its suburbs recording positive ratings in our latest research.

“Glenelg has recorded five consecutive quarters of rising sales volumes, with the suburb home to Adelaide’s most popular beach, which attracts visitors because of its historic jetty, waterfront cafes, restaurants, and boutiques.”

Across Brisbane, Bahrs Scrub and Macleay Island were popular, while Highfields, Kirkwood and Palmview were in demand regionally.

Mr Ryder said no locations in WA made the list and demand was showing signs of drying up.

“We continue to warn investors to be cautious in approaching the Perth market – too many buyers are acting in haste, paying well above the asking price to beat the competition without regard to quality or location,” he said. 

“Many will regret decisions made in haste amid the frenzy

“The latest sales volumes data suggests that the Perth market has passed its peak in terms of buyer activity and is unlikely to continue leading the nation on price growth –although the low level of listings of properties for sale is partly to blame.

“Our new analysis shows a significant drop-off in sales across Greater Perth in the past six months. 

“There are a number of other signals that the peak has been reached, or passed, in this market – including longer ‘days on market’ in some areas and price decline at the top end of the market.”

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