A new PropTrack report has revealed the 10 suburbs in Australia where property prices have doubled the quickest, relative to May 2023.
- Despite a fluctuating market, several Aussie suburbs have seen property prices more than double in the past two years.
- Prices in Boat Harbour (NSW) doubled in the 16 months to May 2023.
- A new Domain report shows the areas without a single listing in the past 12 months, showing the supply squeeze keeping prices high.
Boat Harbour, about 40kms north of Newcastle, was the standout, with the median property price taking just 16 months to go from $846,250 to $1,707,500 in May 2023.
All but three of the top 10 were in NSW.
The recent peak for property prices Australia wide was in April '22, before the cash rate increases saw CoreLogic's Home Value Index drop nearly 10% by the end of the year.
Since then, strong demand and limited supply have seen prices hold up far beyond expectation so far in 2023.
These suburbs though have likely defied broader trends, and enjoyed fairly uninterrupted growth in the past 18-24 months.
Domain report highlights low supply
Coming into this year, many economists felt that with the cost of borrowing high, and likely to continue to increase, less Australians would take on home loans, decreasing demand in the property market and bringing down prices.
While borrowing capacity may have reduced, extremely tight supply conditions have meant prices have held up far beyond expectations, growing in both April and May.
Speaking to the Savings Tip Jar podcast, Ray White chief economist Nerida Conisbee said vendors were likely nervous about the state of the market, and holding off on selling.
"Sellers are a little bit nervous about the market. And we know that most sellers are subsequent buyers. One of the problems it's creating is that even though we have had all these interest rate rises, this shortage of properties on market is creating faster price growth than anyone expected," Ms Conisbee said.
A new Domain report has laid bare just how limited supply is at the moment, with several areas without a single listing in the past twelve months.
Anyone looking for a unit in Barossa, Yorke or Mid North (all SA) is out of luck, while there was a 90% reduction in houses for sale in the WA outback.
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"The Australian suburbs where property prices have doubled in the past two years" was originally published on Savings.com.au and was republished with permission.