In the year-to-date, accelerated growth for residential property in Australia has abated, for the most part. However, this generality on Australian residential markets comes without looking at the different markets, which are experiencing varying phases of growth in a rising interest rate environment.
While Sydney and Melbourne have been the first property markets to slip from their highs in January this year, Adelaide has taken a lot longer to slow down. As the broader market pauses, some of the suburbs that have continued to grow are simply laggards of more traditional growth suburbs, sharing the same characteristics as the suburbs that grew last year and have started to return to trend.
In cities like Sydney and Melbourne, growth has shifted to outer suburbs and regional centres, while Queensland has seen strong growth predominantly in coastal and beachside suburbs.Adelaide is the only city to see the leading suburbs remain entirely within the city, reflecting the strong growth the city itself has had this year.Western Australia has growth largely in the regions, with Derby standing out as a remote suburb amongst the list.Launceston and Hobart share growth evenly in Tasmania, with outer suburbs seeing the fastest development.
The Northern Territory is relatively muted as the only state or territory with the highest growth under 30 per cent. Leaders are shared between Darwin, Palmerston and Tennant Creek.
The ACT has seen growth exclusively in the outer suburbs, with Denman Prospect especially being a recently developed suburb close to Mount Stromlo.
It appears prices have risen evenly in both the regions and the outer reaches of a major city.Interestingly, we never see the high percentage growth in the traditionally expensive or inner city suburbs that dominate the leaderboards for dollar growth. While the trend over the pandemic lockdowns was a shift to the regions, that trend appears to have slowed somewhat, as workers have returned to the office.
