NSW dominates list of Australia’s top 50 supercharged suburbs

More than half of Australia’s top 50 supercharged suburbs are located in New South Wales, illustrating a significant shift from last year when Western Australia dominated the list, new research and analysis reveal. The Hotspotting Price Predictor Index (PPI) Winter Edition highlights the top 50 supercharged suburbs nationwide, identifying areas where sales volumes have steadily increased over four or more consecutive quarters.

Terry Ryder, Director of Hotspotting, explained the relevance of sales volumes as an indicator of future price movements. “History shows that there is a correlation between sales volumes and price movements: the number of sales changes first and then prices react – with a time lag,” said Ryder. This insight suggests that investors can anticipate price growth by identifying locations where sales are increasing but prices have not yet adjusted.

The latest research positions New South Wales at the forefront with 26 suburbs featured on the list, followed by Victoria with 10, South Australia with six, Queensland with five, and the Australian Capital Territory with three. Notably, Western Australia, which had a significant presence on the list last year, did not secure a single entry this year.

Ryder issued a caution to investors considering the Perth market, noting a decrease in buyer activity and suggesting the market may have reached its peak. “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. Many will regret decisions made in haste amid the frenzy,” he stated.

The resurgence of the market in parts of Sydney and Regional New South Wales began last year, with noticeable activity in locations such as Surry Hills. Tim Graham, General Manager of Hotspotting, highlighted Surry Hills as the nation’s current top supercharged suburb. “Sales numbers have been trending sharply upwards, with the March 2024 quarter numbers double those in the March 2023 quarter. The median unit price has increased 7.1% in the past year to reach $942,000, based on 306 sales – with properties typically selling in a month,” Graham said.

The study also indicated a positive outlook for the Melbourne market, in contrast to prevailing negative narratives. Suburbs like Deer Park showcased potential with five consecutive quarters of rising property sales. Graham also noted Adelaide and Regional South Australia’s promising markets, including Glenelg, which has witnessed five consecutive quarters of rising sales volumes.

The Hotspotting Price Predictor Index provides a comprehensive list of the top 50 supercharged suburbs, detailing quarterly sales and highlighting the dynamic nature of Australia’s real estate market.