The latest data has revealed Australia’s underdog locations where home prices have sprinted away with market-beating growth, despite lagging behind in recent years.
House and unit prices in a handful of dark-horse suburbs across the country have zoomed ahead in the past 12 months, PropTrack data shows, bucking five-year trends of sluggish or even backward growth.
Markets including Paddington in NSW, Middle Park in Victoria and South Brisbane in Queensland made the list of just 17 suburbs where prices made an impressive turnaround.
The data analysed house and unit markets where median prices increased by at least 10% over the 12 months to June, but saw less than 10% five-year growth.
South Lismore in the regional town of Lismore in NSW recorded the strongest price comeback, with the median house price leaping 23% to $270,000 during the year to June despite it being 7% lower than the same time five years ago.
PropTrack director of economic research Cameron Kusher said the South Lismore price changes were most likely due to periodic flooding in the region.
Australia's underdog house and unit markets
| Suburb | State | Property Type | Median price | 12-month % change | Five-year % change |
| South Lismore | NSW | House | $270,000 | 23% | -7% |
| Lindfield | NSW | Unit | $1,269,000 | 23% | 9% |
| Chippendale | NSW | Unit | $850,000 | 17% | -2% |
| Port Augusta West | SA | House | $265,000 | 17% | -6% |
| Greenwich | NSW | Unit | $800,000 | 16% | 4% |
| Rosebery | NSW | Unit | $909,000 | 16% | 3% |
| South Brisbane | QLD | Unit | $610,000 | 15% | 10% |
| Middle Park | VIC | House | $2,800,000 | 13% | 3% |
| McMahons Point | NSW | Unit | $1,290,000 | 12% | -5% |
| Harris Park | NSW | Unit | $470,000 | 12% | -1% |
| Paddington | NSW | Unit | $918,000 | 12% | 5% |
| Alphington | VIC | Unit | $748,000 | 12% | 7% |
| Humpty Doo | NT | House | $610,000 | 11% | 10% |
| Elizabeth Bay | NSW | Unit | $1,000,000 | 10% | 4% |
| Canterbury | VIC | Unit | $1,115,000 | 10% | -19% |
| Box Hill | VIC | Unit | $595,000 | 10% | 5% |
| Forest Hill | VIC | Unit | $825,000 | 10% | 7% |
Lismore was hit with its highest floods on record in February 2022 – more than 14 metres high – which devastated the town and its residents.
“I think the South Lismore price change reflects that there’s been flood damage in the area and now it’s being repaired," Mr Kusher said.
Real estate agent Gerald Pollard from Wal Murray & Co First National Lismore said a lot of houses in the area had been renovated and then sold for prices between $400,000 and $450,000.
“If the renovators aren’t selling them, then they are renting them out for between $400 to $500 per week, so they’re getting a fair return," Mr Pollard said.
Despite it being un-renovated, Mr Pollard sold the three-bedroom home at 83 Casino Street, South Lismore (which was impacted by the February 2022 floods) for $350,000 – $80,000 more than the median house price.
He said the state government buyback of certain flood-affected houses throughout the region may have also increased prices in the area.
The three-bedroom house at 83 Casino Street, South Lismore fetched $350,000 in June. Picture: realestate.com.au/sold
Fellow Lismore real estate agent Mark Harley from Ray White said they had gone from selling flood-affected properties to reselling newly renovated properties.
“Now that those properties have been renovated, which were being sold for around the low $200,000 range, they are now selling around the low to mid $400,000 range on average,” Mr Harley said.
The renovated three-bedroom house at 47 Caniaba Street, South Lismore was bought for $427,500 this month. Picture: realestate.com.au/sold
He sold the renovated three-bedroom house at 47 Caniaba Street, South Lismore, which was also impacted by the floods, for $427,500 earlier this month.
“Lismore is well known for its resilience because we have endured a lot of floods,” Mr Harley said.
“We’ve had people move to Lismore who have said they love the community spirit and want to be a part of it.”
Units dominate the underdogs
While South Lismore house prices topped the list, unit markets were the surprise winners among these underdog locations, representing 13 of the 17 markets.
Mr Kusher said while house prices had typically outperformed units – unit prices were now starting to catch up in some markets.
“A lot of the areas where we’re seeing units on this list have already seen quite strong price growth for houses,” Mr Kusher said.
“It could be a realisation that if you want to be in that suburb – especially at a certain price point – then your option is going to have to be a unit.
The thee-bedroom apartment at 132/7 Dunstan Grove, Lindfield sold for $1.575 million in May. Picture: realestate.com.au/sold
“If you look at Lindfield, Chippendale, Greenwich and Rosebery, these are units in pretty blue-chip locations where people are being priced out of the house market, so they are looking at medium and higher density housing as an alternative.”
The Sydney suburb of Lindfield led the unit markets, with its median unit price growing a staggering 23% year-on-year to $1.269 million in June, yet it was only 9% higher than five years ago.
Lindfield is a leafy suburb connected by rail and other public transport that is situated on the upper north shore of Sydney, just 13km northwest of the CBD.
Real estate agent Ben Coventry from DiJones Lindfield said good quality apartments in the suburb had been driving unit prices higher.
The two-bedroom unit at 108/21 Rex Avenue, Alphington was bought for $750,000 earlier this month. Picture: realestate.com.au/sold
“We have a large downsizing market, so they’re able to pay a little more compared to first-home buyers,” Mr Coventry said.
“People are willing to go the extra mile for the quality stock that’s already been developed rather than waiting for the new stock that’s coming.”
Mr Coventry sold the three-bedroom apartment at 103/1-3 Tubbs View, Lindfield for $1.8 million in May, as well as the three-bedroom apartment at 132/7 Dunstan Grove, Lindfield for $1.575 million – both sales substantially more than the suburb's unit median of $1.269 million.
The Sydney unit markets of Chippendale, Greenwich, Rosebery, McMahons Point, Harris Park, Paddington and Elizabeth Bay were also on the list.
This two-bedroom unit at 22701/28 Merivale Street in South Brisbane traded hands for $790,000 earlier this month. Picture: realestate.com.au/sold
Outside of Sydney, there were dark-horse unit markets in the Brisbane suburb of South Brisbane and the Melbourne suburbs of Canterbury, Box Hill, Forest Hill and Alphington.
South Brisbane’s median unit price rose 15% year-on-year to $610,000, while it was only 10% higher than the same time five years ago.
Real estate agent Rocky Zhong from Harcourts Connections said competition between owner occupiers and investors were driving South Brisbane apartment prices higher.
Mr Zhong said first-home buyers were buying apartments in the inner Brisbane suburb to get a foot on the property ladder.
This four-bedroom house at 345 Redcliffe Road, Humpty Doo was bought for $899,000 in May. Picture: realestate.com.au/sold
At the same time, property investors were attracted to the strong rental returns on offer in South Brisbane, where one-bedroom apartments were leasing for between $680 and $750 per week, he said.
Mr Zhong sold the one-bedroom apartment at 12406/22 Merivale Street, South Brisbane for $542,000 in July, in addition to the two-bedroom unit at 22701/28 Merivale Street for $790,000.
House market high performers
Aside from South Lismore, the other house market high performers were Port Augusta West in regional South Australia, Middle Park in Melbourne and Humpty Doo in Darwin.
Port Augusta West is a suburb of the small coastal city of Port Augusta, located about 310km north of Adelaide.
This four-bedroom house at 9 Cobbin Street, Port Augusta West fetched $500,000 in May. Picture: realestate.com.au/sold
The suburb’s median house price rose 17% year-on-year to $265,000 in June, despite being 6% lower than five years ago.
Real estate agent Charmaine Budd from Ray White - Port Augusta/Whyalla said major projects such as BHP’s recent Oak Dam copper discovery were attracting interstate investors to the area.
“The recent Oak Dam mine announcement has put a lot of focus on Port Augusta with interstate investors," Ms Budd said.
“Two thirds of my buyers are interstate investors or Adelaide-based investors. Interstate investors have been purchasing the lower end of the property market for quite a few years, but the demand continues to rise.
“This demand has pushed a lot of local buyers to increase their budgets, so where they used to buy something in the low $200,000s, they’ve now been pushed to buying properties in the $300,000s.”
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