Hot 100 suburbs to watch in 2023: Australia's best real estate prospects

The inaugural realestate.com.au Hot 100 has been released, identifying the suburbs around Australia with the best real estate prospects in 2023.

Compiled from the insights of a panel of industry experts – including the head of a major agency group, buyer’s agents, researchers, and an academic – and complemented by PropTrack data and economic analysis, the exhaustive list is an independent overview of future growth drivers.

Cameron Kusher, director of economic research at PropTrack, said market uncertainty had increased in recent months due to the Reserve Bank’s aggressive approach to interest rates.

“Despite the rapid increases in rates through 2022 and subsequently reduced borrowing capacities and lower home prices, there are still plenty of suburbs that offer great opportunities,” Mr Kusher said.

There have been gloomy headlines about price shifts, but Mr Kusher said there are locations around the country that will defy those broader market trends.

“That’s why it’s imperative that anyone thinking of buying does their own research to understand what drives a local market and how it is likely to evolve over the coming years.”

A panel of leading experts has nominated the 100 suburbs the sun is likely to shine on during 2023. Picture: Getty

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Suburbs were nominated based on various mid- and long-term growth drivers, including:

• Affordability, either low prices suiting buyers on a budget or relative affordability compared to nearby suburbs
• Amenity, being the level of lifestyle pluses, from bars and restaurants to boutiques and parklands
• Family appeal, such as dwelling type, perceived safety and proximity to good schools
• Location, including proximity to the CBD or major hubs, or closeness to natural amenity like beaches
• Investment prospects, from rental market conditions to expected imminent upside
• Gentrification, being the changing face of a suburb
• Population growth, representing a projected increase in the number of locals
• Demographic change, indicating a shift from the current make-up of residents, for example young families replacing downsizing elderly locals
• Infrastructure, looking at major investments in projects that will benefit the suburb or surrounds.

“Victorian suburbs are most prevalent on the list, which may seem surprising given the larger price falls to date, but remember that migration is lifting in the state,” Mr Kusher said.

In Melbourne, price growth has been much more moderate since the onset of the Covid pandemic than in other capitals due to long and repeated lockdowns in 2020 and 2021, he added.

“New South Wales and Queensland suburbs are also prevalent on the list, which speaks to the medium- to long-term fundamentals of these markets, where supply is low and demand is strong.”

2023 trends: Affordability, amenity, growth

PropTrack economist Anne Flaherty said a number of trends were evident when examining the Hot 100 list.

“Many suburbs were selected based on their affordability, which is a key concern of some buyers currently active in the market,” Ms Flaherty said.

“Livability was another key driver of selection, with references to amenity, infrastructure, and family appeal. Since the onset of Covid, people place higher importance on lifestyle.

“And opportunities for future growth were also important, with many of the experts choosing stand-out suburbs based on their solid investment prospects, a growing population, or undergoing gentrification.”

“Remember that housing should be seen as a long-term asset class because of its illiquid nature, and like any asset class, the value of a property will fluctuate over time,” Mr Kusher said.

“It’s about purchasing the right property at the right price, rather than buying or selling because that’s what the herd is doing.”

Jump to your state or territory

• New South Wales
• Victoria
• Queensland
• South Australia
• Western Australia
• Australian Capital Territory
• Tasmania
• Northern Territory

Acknowledgments

Project lead: Shannon Molloy
Writers: Shannon Molloy, Emily Hutchinson, Erinna Giblin
Research and economics: Cameron Kusher, Anne Flaherty
Data analysis: Megan Lieu
Graphics: Mika Kalaw
Video: Jared Barnes, John Holdsworth
SEO: Marnie Bodin
EDM support: Natalie Yeo, Jane Yuen
Social support: Taylar Farquhar
Communications support: Sophie Cressall, Alex Quitt
Editorial oversight: John Healy

The expert panel

Dan White – Ray White Group, Managing Director
Pete Wargent – BuyersBuyers, Co-Founder
Miriam Sandkuhler – Property Mavens, Chief Executive Officer
Ben Plohl – BFP Property Buyers, Founder
Kate Hill – Adviseable, Property Buyer
Scott Aggett – Hello Haus, Founder
Rich Harvey – Propertybuyer, Chief Executive Officer
Claire Corby – Capital Buyers Agency, Buyer’s Agent
Michelle May – Michelle May Buyers Agents, Founder
Peter Koulizos – The University of Adelaide, Program Director of Master of Property

Note

The information published in this report is of a general nature only and does not consider your personal objectives, financial situation or particular needs. Where indicated, third parties have written and supplied the content and we are not responsible for it. We make no warranty as to the accuracy, completeness or reliability of the information, nor do we accept any liability or responsibility arising in any way from omissions or errors contained in the content. We strongly recommend that you obtain independent advice before making any property decisions.

 

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