Top Suburbs For House Price Growth In 2023

]The strongest house price growth was seen in Australia’s more affordable suburbs in 2023, as high interest rates and an average 30% reduction in borrowing capacity prompted more buying activity in markets with lower median prices.

CoreLogic’s annual Best of the Best report reveals that Brookdale in Perth recorded the highest house price growth of the capital cities at 32.8% to a median value of $474,532. Across the regional markets, Tralee in the south-east of NSW and close to the ACT border recorded the best growth at 34.2% to a median house price of $782,764.

The Australian housing market has demonstrated surprising resilience despite interest rates rising substantially over a short period. CoreLogic reports that the average home loan size today is only 0.1% below where it was at the peak of the cycle in April 2022 before rate rises began. This likely reflects two trends. The first is more purchasing activity in lower-priced markets where buyers need smaller loans. CoreLogic says the cheaper capital cities of Perth, Brisbane and Adelaide demonstrated more resilience during the 2022 downswing and strong growth in 2023.

The second trend is more buying activity among wealthy Australians, foreign investors and downsizers, who are less reliant on credit to buy. Additionally, a shortage of homes for sale across the board created stronger competition, as many would-be sellers waited for prices to fully recover following the 2022 market correction. Mortgage holders coped well with rising rates by leaning on savings buffers, working more hours and reducing their discretionary spending at the shops.

However, there are signs that high interest rates are now starting to bite, with the pace of property price growth slowing and auction clearance rates falling in the second half of 2023. This was first seen across the upper price brackets of the market, and CoreLogic expects this trend to filter through to the low to middle price brackets next year. Tougher economic conditions may also weaken the market, with the Reserve Bank forecasting unemployment to rise in 2024 amid subdued economic growth. Most analysts say interest rates are unlikely to fall until very late in 2024 at the earliest.

CoreLogic Head of Research Tim Lawless says it will be a different market next year and price growth will be lower. “Growth in housing values is likely to show greater diversity, both geographically and across housing types,” he said. “Overall, housing value performance is likely to be softer next year relative to 2023. Western Australia and Queensland look well placed to outperform the rest of the country given solid interstate migration rates, low supply and less affordability challenges relative to Sydney and Melbourne. Unit values also are positioned to outperform relative to houses, given the cheaper price points and burgeoning undersupply across the medium to high density sector.”

Suburbs in capital cities with the greatest house price growth:  

1. Brookdale, Perth (up 32.8% to a median value of $474,532)
2. Armadale, Perth (up 31.4% to $422,427)
3. Hilbert, Perth (up 30.1% to $525,827)
4. Ravenswood, Perth (up 29.2% to $630,258)
5. Whitlam, Canberra (up 29.1% to $1,158,983)
6. Camillo, Perth (up 27.3% to $440,749)
7. Haynes, Perth (up 25.7% to $494,323)
8. Bayview, Sydney (up 25.3% to $3,123,777)
9. Seville Grove, Perth (up 25.2% to $540,983)
10. Gosnells, Perth (up 25.1% to $475,030)

Suburbs in regional areas with the greatest house price growth:  

1. Tralee, NSW (up 34.2% to $782,764)
2. Port Vincent, SA (up 25.9% to $404,359)
3. Angaston, SA (up 23.9% to $573,883)
4. Mount Morgan, QLD (up 22.8% to $198,636)
5. Kapunda, SA (up 21.4% to $445,814)
6. Barraba, NSW (up 21.2% to $258,652)
7. York, WA (up 21.1% to $373,340)
8. Green Head, WA (up 21% to $378,433)
9. Kingscote, SA (up 20.8% to $434,232)
10. Waroona, WA (up 20.6% to $430,990)