So hot right now: Australia’s most competitive suburbs that homebuyers are racing to buy in

New PropTrack data has revealed the top 10 suburbs in every capital city where the median number of days on market (DOM) has declined the most over the past 12 months. 

These suburbs are so hot that buyers are making offers within days of homes hitting the market, and properties are selling within a fraction of the time they were a year ago, real estate agents told Realestate.com.au.

PropTrack senior economist Anne Flaherty said DOM was often a good indicator of where property prices were heading.  

“When we see properties start to take longer to sell, we often see home price growth slow or even move backwards,” she said.   

“In the areas where properties sell very quickly, buyers recognise that they need to put in competitive offers quickly, so they'll often put in higher prices which can lead to price growth.”  

Take a look at the full list of hottest suburbs in each capital city

Perth is widely considered to be Australia's hottest market at the moment. Picture: Getty

Housing affordability has been a common theme among the fastest moving neighbourhoods across the country, as well as a lack of homes available for sale. 

Ms Flaherty said the suburbs with the sharpest declines over the past year had tended to be more affordable locations. 

“The proportion of suburbs that a typical first-time buyer can buy is shrinking, and that's directing increased competition into those affordable areas,” she said.  

“We’re seeing the largest declines in the markets with the strong home price performance at the moment."

“Perth is Australia’s hottest property market at the moment, and we can see that nine of the top 10 suburbs with the greatest DOM declines are now selling in under two weeks on average.” 

Perth homes on the move  

This three-bedroom South Lake house is currently on the market suggesting offers from $678,000. Picture: realestate.com.au

South Lake in Perth had the largest decline in DOM out of all of capital city suburbs, down 78% compared to a year ago.  

Houses in South Lake – located about 22 kilometres south of Perth – now spent just 10 days on average on the market before they were sold.  

Real estate agent and licensee at GLC Residential Lisa Correia said housing affordability was driving competition in South Lake.  

“South Lake is one of the last affordable suburbs that's on the freeway going into the CBD,” she said.  

“It’s also located about 15 minutes from the beach, so you’ve got the best of both worlds there. 

“About 80% of the buyers in South Lake are younger couples and families buying their first home who want a bigger block where they can raise a family.”  

The median house price in South Lake was $665,000, up 27.3% over the past year.  

Ms Correia said the lack of homes for sale across Perth was also driving down the average time spent on the market for South Lake and other hot markets throughout the city.  

Brisbane suburbs sprinting away  

This four-bedroom Walloon house is currently on the market for $790,500. Picture: realestate.com.au

Brisbane’s hottest suburbs also saw houses selling rapidly, led by the outer suburb of Walloon where houses were selling 67% faster than a year earlier.  

Houses in Walloon were now spending just 14 days, on average, on the market compared with 43 at the same time last year.  

Ray White Ipswich real estate agent Megan Acutt said buyers were attracted to Walloon and other areas around the Ipswich region since they were still relatively affordable. 

“Walloon is really central, it’s about 35 minutes from Brisbane via the Warrego and Cunningham highways, while Toowoomba is about 40 minutes away in the other direction,” she said. 

“It’s also close to the Amberley air base and its 5,000 staff there. 

“You can find houses in Walloon priced under the $800,000 cap for the first-home buyer stamp duty discount. 

“If your house is presented and priced right in that area, it can sell within the first open house.”  

Walloon’s median house price was $669,900 – 19.6% higher than the same time last year.  

Blue Mountains’ suburbs dominate in Sydney  

This six-bedroom house in Lawson is currently on the market for $1,280,000. Picture: realestate.com.au

Sydney had the fastest moving suburbs after Perth and Brisbane, with Lawson in the Blue Mountains taking the lead. 

The median DOM for Lawson – located 93km west of the Sydney CBD – fell 62% year-on-year (YoY) to 22 days.  

Real estate agent and principal at Oriordan Real Estate Paul O'Riordan said Lawson was affordable, desirable and well-connected to the Sydney metro area.  

“There’s a lot of beautiful old weatherboard houses in Lawson, which capture the imaginations of Sydneysiders,” he said.  

“It also has shops, restaurants and cafes, as well as fantastic bush walks and other things that are making Lawson more popular. 

“It’s a very desirable area at the moment, I’m mostly selling to buyers from the Sydney metro area who want to make the move up here.”  

Lawson’s median house price rose 10.1% to $825,000 during the year to September, yet it remains significantly less than Sydney’s median house price of $1.443 million.  

Fastest suburbs everywhere else 

This four-bedroom house in Morphetville was sold in September for $1,300,000. Picture: realestate.com.au

The other capital cities had their own quick-moving suburbs that reflected the different market conditions around the country.  

Mount Nelson led the way in Hobart, with DOM decreasing 56% over the past year to just 14 days.   

Hurstbridge in Melbourne’s northeast had the largest DOM decrease in the city, declining 44% to 20 days.

In Adelaide, Morphettville had the greatest DOM decline, falling 39% YoY to 27 days.  

Wanniassa in the ACT saw its DOM fall by 32% to 37 days, while Darwin’s Coconut Grove had a 24% annual decline to 65 days.  

While housing affordability and the lack of supply in certain cities has forced buyers to move faster, Ms Flaherty said increased new listings may help slow things down.  

Capital city new listing volumes were 1.6% higher YoY in August and were the highest they have been in August since 2012, the latest PropTrack data showed.   

“Increased listings normally mean longer times on the market because buyers can take their time when there's more choice out there,” Ms Flaherty said.  

“So we could see days on the market increase slightly over the spring selling season as there's more choice available.  

“Having said that, those affordable suburbs that are attracting a higher proportion of the buyer pool are likely to continue seeing properties move very quickly.”

Top suburbs in each capital city where days on market fell the most over the past year