Australia's top 10 suburbs tipped for property growth in 2023

Hotspotting’s Terry Ryder has identified the top 10 suburbs across Australia with the best growth prospects for 2023. Find out which locations made the cut.

Late in 2022, Canstar published its Rising Stars Australian Property Market Report in conjunction with Hotspotting, to highlight the markets across Australia expected to provide the best growth prospects in 2023.

The report used five metrics – forward indicators of growth such as sales volumes, vacancy rates and infrastructure spending – to rank the 14 major market jurisdictions (eight capital cities and six state regional markets) on their prospects for price growth in 2023.

Within each of the 14 jurisdictions, the Rising Stars report provided a Top 10 (or Top 5 in the smaller jurisdictions) list of suburbs/towns with the best prospects for future growth – identifying a total of 110 ‘Rising Star’ suburbs.

From those 110 locations, we have chosen our national Top 10, with affordability as a key metric.

Buyers of all kinds are chasing affordability like never before. In every market jurisdiction across Australia, from the biggest capital cities to the hill-change country towns, it’s the cheaper end of the market that is leading.

The strongest capital city markets – the ones that are defying downturn pressures – are the ones that offer the most affordable prices: Adelaide, Perth and Darwin.

In the biggest cities, it’s the bottom end of the market that is holding up most stubbornly against the general decrease in prices.

And affordable sea change and hill change locations continue to attract good buyer demand, while the iconic (and very expensive) areas such as Byron Bay, the Sunshine Coast and the Southern Highlands are now in decline.

Home buyers are focussing on the locations that offer a degree of affordability – including inner-city apartments and outer-ring suburbs in the biggest cities – while investors are targeting places that offer a blend of lower prices and higher yields to compensate for higher interest rates.

This is reflected in our choices for the national Top 10 from the individual Top 5 and Top 10 lists for each of the 14 major market jurisdictions.

They’re all places that not only have that prized quality of relative affordability but also offer good prospects for capital growth, because of their proximity to desirable features and/or local events like major new infrastructure.

The other common feature is exceptionally low vacancy rates, with strong upward pressure on rents.

Top 10 growth locations in Australia

Here is a list of the top 10 suburbs or towns tipped for growth in 2023. These are not ranked in any particular order. They are listed alphabetically.

• Annerley (Units), Queensland
• Eaglehawk, Victoria
• Geraldton, Western Australia
• Munno Para, South Australia
• Murray Bridge, South Australia
• Muswellbrook, New South Wales
• New Norfolk, Tasmania
• South Toowoomba, Queensland
• Sunbury, Victoria
• Waikiki, Western Australia

Annerley (Units), Queensland

The research indicates suburbs close to the big sporting venues get the biggest boost from an Olympic Games. The inner Brisbane suburb of Annerley is well-situated, not far from the Gabba which will be the main venue for the 2032 Olympics. It’s also handy to one of Brisbane’s major hospitals, the University of Queensland, the Pacific Motorway and commuter rail. Houses are becoming expensive but units are an affordable option.

→ Related: 10 best suburbs in Brisbane to invest in 2023

Eaglehawk, Victoria

Many analysts have ranked Bendigo among the most dependable markets in Australia, producing good growth year after year. It’s underpinned by a strong and diverse economy and there is ongoing spending on infrastructure, with good transport links to Melbourne. Eaglehawk is typical of Bendigo: featuring good amenities, houses in the $400,000s and $500,000s, a good growth record and very low vacancies.

→ Related: 10 best suburbs in Regional Victoria to invest in 2023

Geraldton, Western Australia

This attractive coastal city in Western Australia has been flying under the radar in the decade since the resources boom ended. Its prospects are rising again, boosted by the ‘Exodus to Affordable Lifestyle’ trend and new infrastructure proposals. A median price in the low $300,000s, yields above 6% and very low vacancies provide an attractive package. The suburb of Geraldton in the LGA of the same name is the commercial heart, with waterfront appeal and lots of amenities.

→ Related: 5 best suburbs in Regional Western Australia to invest in 2023

Munno Para, South Australia

The City of Playford is one of Australia’s busiest markets, with most suburbs still recording rising sales levels. Affordability and proximity to major employment zones are boosting demand, while investors are attracted by the low prices, high yields and low vacancies. The rate of sale in Munno Para and Munno Para West has tripled in the past two years. In 2020 buyers could get houses in the $200,000s and recent demand has pushed prices into the mid-$300,000s – still affordable for many buyers. This northern Adelaide precinct offers rail and motorway connectivity, shopping, schools and a golf course.

→ Related: 10 best suburbs in Adelaide to invest in 2023

Murray Bridge, South Australia

The Adelaide Hills precinct has thrived during the South Australian capital’s ‘up’ cycle. But those who find suburbs such as Stirling and Aldgate too pricey can keep driving and consider the affordable alternative of Murray Bridge, beyond the Greater Adelaide area. This riverside town has a vibrant economy, notable local businesses and houses in the low $300,000s.

→ Related: 5 best suburbs in Regional South Australia to invest in 2023

Muswellbrook, New South Wales

The Hunter Region has been one of the standout markets for price growth in the past two years, boosted by its strong economy, the allure of its hill change lifestyle and proximity to Newcastle. Most towns now have prices well above $500,000, but Muswellbrook remains an oasis of affordability. The general equation – median price $440,000, vacancy rate 0.6%, median yield 5.1% – is attractive for investors.

→ Related: 10 best suburbs in Regional New South Wales to invest in 2023

New Norfolk, Tasmania

After several years of stellar price growth, Hobart is no longer a cheap city, with prices now comparable to those in Brisbane. But New Norfolk, on the fringe of the Hobart metropolitan area, provides an affordable alternative. An historic town on the River Derwent, New Norfolk is about 30km north-west of Hobart. It is a modern regional centre which retains evidence of its pioneer heritage. Many private homes from the 1800s have survived. House prices are in the $400,000s.

→ Related: 5 best suburbs in Regional Tasmania to invest in 2023

South Toowoomba, Queensland

Most suburbs in the City of Toowoomba have rising sales activity, led by inner-city locations such as South Toowoomba. The local economy is strong and diverse, big game-changing infrastructure projects are happening, prices are attractively low and scarce rental properties are highly sought-after. Buyer demand is high for this suburb, which sits beside the city centre and includes Toowoomba Hospital, as well as schools and major retail. Houses can still be had in the $400,000s, vacancies are at 0.3% and rents are rising strongly and will likely continue to grow.

 → Related: 10 best suburbs in Regional Queensland to invest in 2023

Sunbury, Victoria

This outer north-western suburb of Greater Melbourne has the population of a substantial regional city (almost 40,000). It has the facilities of a small city, with a town centre which includes a major shopping centre and train station on the Melbourne-Bendigo line. There are schools and colleges, a golf course, parks and nature reserves. Houses are in the high $500,000s and $600,000s.

→ Related: 10 best suburbs in Melbourne to invest in 2023

Waikiki, Western Australia

Perth, the most affordable capital city in Australia, arguably has the strongest market among the cities, led by locations at the cheaper end of the market. Sales activity in Waikiki in the City of Rockingham lifted from 70-80 sales per quarter two years ago to 130-140 per quarter in 2022, with typical houses in the low $400,000s. Waikiki offers an enviable lifestyle for the price, book-ended by beaches to the west and the vast Rockingham Lakes Regional Park to the east.

→ Related: 10 best suburbs in Perth to invest in 2023

Australia’s Top 10 growth locations

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Sources: *CoreLogic data via yourinvestmentpropertymag.com.au as at October 31, 2022.  ** *CoreLogic data via yourinvestmentpropertymag.com.au as at December 31, 2022. #SQM Research as at November 2022.

Cover image source: Adwo/Shutterstock.com

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