The big capital cities present the best buying opportunities in the next 12 months, led by Brisbane, Adelaide and Sydney.
Canstar’s annual Rising Stars Report found that despite regional areas outperforming their capital city counterparts for several years, Australia’s biggest cities were about to catch up.
Brisbane is at the top of the leaderboard this year, with the best prospects for future capital growth in the 14 jurisdictions assessed, followed by Adelaide and Sydney.
Hotspotting property expert and co-producer of the Rising Stars report, Terry Ryder, said Brisbane had moved into the top spot after finishing in second place last year.
“Brisbane enters 2024 with impetus from a range of influences: buyer demand is rising, there has been continued uplift in prices in most suburbs in the latest quarter, vacancy rates are low and rents are rising strongly,” Mr Ryder said.
“Brisbane has multimillion-dollar projects on the go as it prepares for the 2032 Olympics and Sydney is benefiting from business investments and governments pouring millions into transport and education.”
Mr Ryder said last year’s number one ranked market, Adelaide, continued the trend of the smaller capital cities holding their own, coming in at number two for 2024.
He said Sydney surged this year, rising nine places in the rankings, to round out the top three.
“The biggest improvement in Sydney has been a steady rise in sales activity, with buyer demand growing in the past 12 months,” he said.
He said the harbour city had also become a national leader in rental growth.
“Two of these top three markets – Brisbane and Sydney – have also been buoyed by the impact of infrastructure investments,” he said.
Mr Ryder said Adelaide’s relative affordability had driven the city, with strong house price growth signalling good prospects for future growth.
“In general, the major cities have outperformed the regional centres,” he said.
“In past years, regional centres have exhibited strong growth with the exodus to regional centres driving up property prices.
“With the exception of Regional Queensland, which tied in fifth place, and Regional West Australia that came in seventh place, the outlook is now much more subdued.”
Across Brisbane, the report predicted Bellbird Park, Bowen Hills, Cleveland, Eagleby, Goodna, Milton, Nundah, Petrie, Springwood and Wavell Heights would perform strongly over the next 12 months.
For Adelaide, Andrews Farm, Christie Downs, Elizabeth East, Enfield, Greenwith, Mount Barker, Hope Valley, Salisbury, St Clair and Woodcroft have the most potential.
While in Sydney, the suburbs of Ashfield, Casula, Guildford, Minto, Mt Druitt, Newtown, Padstow, Penshurst, St Marys and Westmead all ranked highly.
Canstar’s Ambassador and Money Expert, Effie Zahos, said this year’s most in-demand suburbs tended to be at the more affordable end of the scale.
“Rising interest rates and living costs are impacting affordability and the borrowing power of buyers,” Ms Zahos said.
“This also extends to their ability to meet loan repayments.
“This is a concern for both new and existing homebuyers and explains why 54 per cent of Rising Star suburbs have a median unit or house price below $600,000.
“The findings also show 37 per cent of this year’s list consists of units, which is up from 18 per cent last year.”
