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Properties in some Aussie suburbs are being snapped up at record rates as issues of scarce supply and high demand continue to strain the market.
Recent Ray White data reveals that time on the market (how long it takes to sell a property) is still significantly higher in most cities across the country compared to two years ago when the market hit its last peak in pricing following the end of the pandemic.
Nationwide, properties are on the market for sale for an average of 30 days, which is far higher than the 22 days recorded in the previous market peak in January 2022.
The data shows that Perth holds the record as the state where properties sell the quickest – at just 11 days.
Brisbane, Sydney and Melbourne follow next, with 22 days, 29 days and 29 days, respectively.
Meanwhile, Hobart has gone from the quickest selling state during the previous market peak to now being one of the slowest selling markets – at 36 days.
The key trend however is affordability, Ray White’s data reveals.
The suburbs where property is selling the quickest
Both Perth and Adelaide have the lowest capital city medians and at a suburb level, low-cost housing is generally selling the quickest.
In fact, of the top 100 quickest-selling suburbs in Australia, 84 are located in Perth, the data reveals.
Properties in Seville Grove, in the city’s southeast, and the outer southern suburb of Cooloongup are among the fastest-selling, with the average time on the market standing at just five days.
Both suburbs have medians under $500,000.
Almost all of the quickest selling suburbs had a median under $750,000 (86 of the 100).
The most expensive of the top 100 quickest selling was the Perth suburb of Mount Claremont which has a median price of $1.78 million.
At a capital city level, it is also apparent that anything that is below the city median is selling a lot quicker.
For example, Sydney’s St Clair and Werrington Downs are listed as the state’s fastest-selling suburbs at 11 days each, and both have a median property price far below the city’s $1,128,155 median.
The same is true of the fastest-selling suburbs in Brisbane.
Properties in Leichhardt and Raceview are the quickest to sell, at 9 and 11 days respectively.
The median property price in these suburbs sits at $450,000 and $530,000 respectively, which is far below Brisbane’s $805,593 city median.
Meanwhile, the exception is Melbourne where properties in Skye and Kilsyth, which have a hold time of just 14 days, have median property prices close to, or just above, below the city’s $778,941 median.
A key takeaway
As always, these tightly-held suburbs aren’t necessarily the suburbs I would recommend investing in.
That’s because when it comes to property investment, it’s most important to look for an investment-grade property in the ‘right area’ rather than chasing ‘top hotspots’ or growth areas.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
You see…property investing is a process, not an event.
Things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
The fact is, the property you will eventually buy will be the result of a sequence of questions you will need to ask and answer and a series of decisions you’ll need to make before you even start looking at locations.
Long before we talk about a property or the right location with our clients at Metropole, we look at factors including their age, their timeframes, and the desired end results in other words, what do they really want the properties to do – are they looking for cash flow, capital growth, or a combination of both.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.
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