Which suburb is set to see the biggest property price growth this winter?

The trendy area populated by heritage-feel houses and contemporary apartment blocks led the charge in the report that saw NSW take a surprising lead as the state with the most suburbs that are expected to see turbocharged growth.

This marks a change from Hotspotting’s recent price predictions, when Western Australia dominated, taking home more than a third of the top 50 spots in the last edition, thanks to strong interest in Perth.

In this release, however, Western Australia failed to appear, with the firm’s analysts warning that the recently hot market has passed its peak.

“We continue to warn investors to be cautious in approaching the Perth market – too many buyers are acting in haste, paying well above the asking price to beat the competition without regard to quality or location. Many will regret decisions made in haste amid the frenzy,” said Hotspotting director, Terry Ryder.

“The latest sales volumes data suggests that the Perth market has passed its peak in terms of buyer activity and is unlikely to continue leading the nation on price growth – although the low level of listings of properties for sale is partly to blame,” he added.

Instead, the firm pinpointed renewed interest in a market that had, until recently, been deterring buyers due to already high prices, coupled with the difficulty of accessing finance.

But with economists cautiously still predicting that the rate hiking cycle has reached its peak, buyers have been making moves in some of the nation’s highest-priced capital markets, giving Sydney in particular a boost in activity.

The prediction that Surry Hills would see the highest price growth over winter was “indicative of a number of key trends in Australian real estate”, according to Hotspotting general manager Tim Graham.

“Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon,” Graham noted.

“Sales numbers have been trending sharply upwards, with the March 2024 quarter numbers double those in the March 2023 quarter. The median unit price has increased 7.1 per cent in the past year to reach $942,000, based on 306 sales – with properties typically selling in a month,” he added.

Meanwhile, the median house price in Surry Hills is also elevated, rising 21 per cent to $2,230,000 over the past year.

Alongside Surry Hills, other Sydney enclaves where prices are predicted to rise include Annandale, in the city’s Inner West, beachside suburbs Bondi and Brighton-le-sands, and Woolloomooloo, Paddington and Darling Point in the thick of the city.

The same trend is expected to pull Melbourne out of a perceived slump, with Ryder noting that contrary to the negative market narrative currently prevalent about Melbourne, the Victorian capital city has seen an uptick in action of late.

“The Melbourne market is poised for better price growth in 2024 than the previous
two years,” he said.

“The median house price grew only 3 per cent in the 12 months to May, but sales activity revived late in 2023 and early 2024, boosted by a solid economy and high population growth.

Located less than 20 kilometres from the CBD, Ryder sees above-average positive growth to dominate in Deer Park, which has already recorded five consecutive quarters of rising property sales, while maintaining its “affordable” entrypoint.

With South Australia nabbing six of the spots on Hotspotting’s latest report, Ryder noted that Adelaide is also forecast to experience some pockets of above-average price growth.

“Adelaide sales activity is 8 per cent higher than a year earlier, despite a 12 per cent annual decline in listings of properties for sale,” Ryder noted.

He’s tipped Glenelg, which has also seen five quarters of positive momentum, as an area to keep an eye on, particularly as it boasts the perennial drawcard of beachside living.