Australia’s breakneck-paced residential market may have slowed somewhat, but some regions of Australia remain hot property with less than a month’s worth of houses listed.
Industry research commissioned by HOOD.ai showed the crunch for demand in 20 tightly-held markets across the country with 13 of the 20 regions recording a fall in available property in the past 12 months.
There have been some dire predictions for house prices, with Westpac forecasting a 14 per cent fall over the next two years, as interest rates list and inflationary pressures increase.
But Australia has recorded its second busiest auction weekend of the year with more than 3000 properties going under the hammer and a clearance rate of about 70 per cent.
HOOD.ai founder Tommy Fraser said buyers were competing for a small pool of properties, driving up prices.
“That story has really played out in these 20 suburbs, where inventory levels have been incredibly low over the past year,” Fraser said.
“As a result, the median house price of most of these suburbs has experienced a double-digit percentage increase over the past year.
“Buyers desperately need new stock to come onto the market in all these suburbs, because, right now, they’re in a terrible bind.
“It would be great to return to a balanced market, where owners enjoy reasonable capital growth and buyers have a reasonable chance of finding a property in their chosen suburb. For that to happen, these 20 suburbs need to see a significant increase in new listings.”
Stock turnover levels in 14 of the 20 markets was at less than 5 per cent. Half of the top 20 undersupplied suburbs were in New South Wales, while regions in Victoria, Canberra and South Australia also featured.
North Sydney took out the top spot with less than a month’s supply of property on the market and a median house price of $2.4 million.
Top 20 undersupplied suburbs
| Rank | State | Suburb | Median price |
| 1 | NSW | North Sydney | $2,400,000 |
| 2 | NSW | Dapto | $737,000 |
| 3 | Vic | Belmont | $735,000 |
| 4 | Vic | Highton | $861,000 |
| 5 | ACT | Conder | $880,000 |
| 6 | NSW | Fairy Meadow | $1,150,000 |
| 7 | NSW | Menai | $1,405,000 |
| 8 | ACT | Evatt | $905,000 |
| 9 | NSW | Stanmore | $2,150,000 |
| 10 | NSW | Corrimal | $1,150,000 |
| 11 | ACT | Amaroo | $915,000 |
| 12 | NSW | Freshwater | $3,250,000 |
| 13 | ACT | Kambah | $880,000 |
| 14 | NSW | Collaroy | $3,750,000 |
| 15 | Vic | Croydon Hills | $1,060,000 |
| 16 | NSW | Cromer | $2,365,000 |
| 17 | NSW | Bangor | $1,510,000 |
| 18 | SA | Largs Bay | $696,000 |
| 19 | SA | Salisbury Heights | $515,199 |
| 20 | SA | Flagstaff Hill | $653,500 |
