The number of properties available to buy remains low relative to pre-pandemic levels, which combined with strong demand means homes in some suburbs are selling just days after hitting the market.
The sharp interest rate hikes since last May have reduced borrowing capacities of those looking to buy a home by around 30%. This has priced some out of the market – but not all.
In fact, the number of potential purchasers – those in the late stages of their property purchase journey – is still high enough that there are significantly more buyers per listing than before the pandemic.
This is especially the case in Queensland and South Australia, where there are 140% and 170% more potential buyers per listing respectively compared to February 2020.
Strong demand coupled with the fact that there are at least 30% fewer properties listed for sale than pre-pandemic means that buyers in these states are still facing strong competition.
And sellers are benefiting as a result.
A closer look at the fastest-selling suburbs for houses shows where properties are snapped up almost as soon as they are listed.
Suburbs with the shortest days on site – houses
Source: PropTrack. Data covers year to February 2023; includes suburbs with ≥ 30 sales Suburb GCCSA Median Days on Market Meadowbrook Greater Brisbane 10 Darling Heights Rest of Qld 12 West Hobart Greater Hobart 13 Bridgewater Greater Adelaide 13 Geilston Bay Greater Hobart 13 Thabeban Rest of Qld 13 Meringandan West Rest of Qld 13 Toowoomba City Rest of Qld 13 Leda Greater Perth 13 Redlynch Rest of Qld 14
Almost all of the top suburbs with the shortest median days on site are located in
Queensland and South Australia, with regional Queensland also featuring prominently.
The typical house in Meadowbrook in
Brisbane was listed on realestate.com.au for just 10 days before being sold.
Darling Heights and Thabeban in
regional Queensland were also popular among buyers, with houses snapped up in 12 to 13 days.
Bridgewater in SA was another sought after suburb with houses typically listed on site for 13 days before being sold.
The trend was apparent for units as well, with the majority of the
fastest-selling suburbs in Queensland and SA. Suburbs with the shortest days on site – units
Source: PropTrack. Data covers year to February 2023; includes suburbs with ≥ 30 sales Suburb GCCSA Median Days on Market Thorneside Greater Brisbane 11 Manly West Greater Brisbane 12 Mooroobool Rest of Qld 12 Manoora Rest of Qld 13 Blacksman Bay Greater Hobart 15 Ascot Park Greater Adelaide 15 Boronia Heights Greater Brisbane 15 Kennington Rest of Vic. 16 Parramatta Park Rest of Qld 17 Camp Hill Greater Brisbane 17
Units in Thorneside and
Manly West in Brisbane were typically sold in just 11 and 12 days respectively.
Mooroobool and Manoora, both regional Queensland suburbs, also attracted many buyers with units only on the market for 12 to 13 days before they sold.
Another popular suburb for units was Ascot Park in SA, where listed properties were on site for just over two weeks.
Interest rate increases have reduced the amount
potential buyers are able to borrow. While this has decreased demand from its record highs over the past two years, it still remains relatively strong.
We expect competition to persist, especially in more affordable
states such as Queensland, Adelaide and Western Australia.