Hot property: The suburbs where homes are flying off the shelf

The Australian property market is experiencing a surge in activity as the spring selling season kicks into high gear, buoyed by recent interest rate cuts. However, in some suburbs, homes are already being snapped up at a lightning pace, with properties barely lasting a week on the market.

According to data from PropTrack, the time it takes for a property to sell can be a strong indicator of demand in the area. “It captures both how much demand there is for homes, but also the availability of homes for buyers to choose from,” REA Group’s executive manager of economics, Angus Moore, explained. “When homes are selling quicker, it suggests there’s more buyers for any given home, and more competitive conditions.”

Leading the charge is Townsville, where homes in suburbs like Condon and Douglas are selling faster than anywhere else in the country. In Condon, houses are typically sold within nine days, while units in Douglas are snapped up in just seven days. This rapid turnover is driven by a combination of local first-home buyers and investors from southern states seeking affordable properties with high rental yields.

Moore highlighted the rapid price growth in Townsville, noting, “Townsville’s rapid price growth had made it the fastest growing region in Australia this year, with prices having doubled since the pandemic. That’s obviously made affordability far more challenging. Given that, that pace of growth is going to be hard to sustain.”

In Sydney, the affordable western suburbs of Penrith and Macarthur are seeing homes fly off the market. In areas like Jamisontown and Werrington County, houses typically last just 12 days before being sold. Real estate agent Jasmyn Calgaro from Ray White Nepean Group attributes this demand to a mix of first-home buyers and local families looking to upsize. “Properties don’t come up that often but when they do they’re very popular,” she said. “A lot of people are opting for older houses with more land. It’s definitely good value for money.”

Melbourne’s outer southwest suburbs, including Carrum Downs, Frankston North, and Narre Warren, are also experiencing brisk sales. These areas have become hotspots for first-home buyers and investors alike, with properties priced below $750,000 being particularly sought after. Michelle Stephens of OBrien Real Estate Carrum Downs remarked, “For a long time a lot of people hadn’t heard of Carrum Downs. But we’re finding it’s quite hot property at the moment. You’re getting really good rental returns, and also days on market for the rental market are quite low as well.”

The trend of quick sales is not limited to metropolitan areas. Regional towns and cities such as Geelong, Bendigo, and Mildura in Victoria, as well as Bundaberg and Gladstone in Queensland, have also seen significant reductions in days on market. In Hobart, suburbs like Austins Ferry, Rosetta, and Geilston Bay are witnessing homes selling twice as fast as they did a year ago. Moore noted, “Conditions since 2022 have been softer in Tasmania, following a big boom in home prices during the pandemic — and in the years leading up to it — that pushed Tassie to being one of the least affordable states in the country.”

While the market remains competitive in many areas, some parts of the country are seeing a shift in buyer preferences. In Perth, for example, the focus is shifting towards units in inner suburbs as affordability becomes a concern. Chris Pham, director at Acton Belle Property Mount Lawley, observed, “It’s a premium location for people to live, and apartments are quite attractive for young professionals. Stock levels are very low, which is pushing up prices and pulling down days on market.”

Brisbane, too, has experienced a cooling in its property market after a period of rapid price growth. “Price growth has started to slow down this year though, and it looks like conditions may be starting to cool, at least a little, as affordability constraints start to bite,” Moore commented, reflecting on the broader trends affecting the Australian housing market.