The plummeting number that reveals where property prices are about to take off

The time it takes a home to sell has reduced in several key markets, with eager buyers snapping up properties much quicker than a year ago.

Homes in some suburbs are selling in less than half the time they were a year ago on the back of increasing demand, in what could be a precursor for accelerating price growth.

PropTrack data has revealed 40 suburbs across the capitals where the time it takes to sell a home has plummeted, with prices poised to take off as a result.

Jump ahead to see the suburbs where homes are selling faster.

Investors looking for the next growth cycle and strong yields have been targeting suburbs in the smaller capital cities, while fringe suburbs in the major capitals are also in high demand due to affordability.

REA Group senior economist Anne Flaherty said days on market is a clear indicator of how demand is tracking in a suburb. 

"Where we see demand tracking up, we see days on market going down," Ms Flaherty said.

Homes in Adelaide sell faster than the other capitals. This four-bedroom Malvern house recently sold for $2.65 million in 23 days. Picture: realestate.com.au/sold

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At the national level, it takes 37 days to sell a house, and 35 days to sell a unit, PropTrack data shows, but homes sell faster than that in some capital cities.

Adelaide is the city where homes sell fastest, with both houses and units typically snapped up within 22 days – the same as a year ago for houses but slightly faster for units.

In Brisbane it takes 28 days to sell a unit and 31 days to sell a house, while houses in Canberra sell in 29 days.

Sydney houses typically sell in 30 days and units sell in 32 days, while Melbourne houses take 31 days to sell and units take 34 days.

But it’s the smaller cities of Darwin and Hobart where homes are selling more rapidly than a year ago.

While homes in Darwin typically take longer to sell than any other capital, units are selling 14 days faster than a year ago, while houses are selling six days faster.

The reduction in days on market has come amid a strengthening of Darwin’s property market, with house prices rising 5.6% in the past year and unit prices climbing 7%.

Investors target Top End

Darwin’s tight rental market has pushed up rents, attracting interstate investors cycling out of previously-booming cities and seeking the next wave of growth.

“In the case of Darwin we’ve seen investor interest really pick up,” Ms Flaherty said.

“Darwin offers some pretty attractive yields and the entry price to buy a property is much lower compared to the other capitals.”

Darwin's property market is on the way up, with prices rising and homes selling quicker. Picture: Getty

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Increased demand for properties in Darwin has caused homes to sell faster, which has been exacerbated by low levels of supply.

There were 38% fewer homes on the market in Darwin last month compared to a year ago, according to the latest REA Group listings report.

Real estate agent and Ray White Darwin principal Andrew Harding said he expected homes to sell even more rapidly in the months ahead given the low number of homes available to buy amid intense investor interest, putting further upward pressure on prices.

Houses in the Darwin suburb of Coconut Grove are selling twice as fast as a year ago. This four-bedroom house recently sold for $690,000 after 49 days on the market, about typical in the suburb. Picture: realestate.com.au/sold

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“Darwin's the cheapest capital city in Australia, has great rental yields, and is one of the few markets that hasn’t seen a huge increase in prices,” he said. 

“The investors are buying anything below $700,000.”

Tasmania rebounds

Meanwhile, houses in Hobart are selling 14% faster than a year ago (43 days on market), while units are selling 7% faster (42 days).

Ms Flaherty said Hobart’s recovery was underway, with the PropTrack Home Price Index showing house prices are 2.8% higher than a year ago.

Hobart's market has strengthened, with properties selling a little quicker and prices growing at a moderate pace. Picture: Getty

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“Hobart had very strong demand during the pandemic when it went through a phase of extreme price growth,” she said.

“Then it went through a period of price correction and now we’re finally on the other side.”

Hobart real estate agent and Peterswald director Harry Coomer said homes were selling a little quicker, with the market strengthening off the back of rate cuts earlier in the year.

“Interest rate drops are certainly giving the market a bit of confidence, which may then contribute to days on market decreasing,” he said.

He said recent modest price growth was expected to continue as confidence increases and the market strengthens.

“Growth in prices should also be relatively gentle, which is what we’ve witnessed over the past six to 12 months.”

Momentum in Perth's property market has slowed, with price growth beginning to normalise. Picture: Getty

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In Perth, units are selling a little faster than a year ago, while houses are taking slightly longer to sell, which Ms Flaherty said could be due to the relative affordability of units following significant house price growth.

“Units typically are attracting a bigger buyer pool in capital cities because they’re more affordable to a greater percentage of people than a house,” she said.

“Often investors and first-home buyers are looking for units as opposed to houses.”

Where properties are selling much quicker than last year

Days on market have plummeted across many outer regions of the capitals in the past year, with the time it takes to sell a house in some suburbs decreasing much more significantly than at the capital city level.

In some suburbs, the data shows homes typically sell twice as fast as a year ago, indicating the supply and demand balance has shifted in sellers' favour.

Houses in Macquarie Links are selling twice as fast as a year ago. This five-bedroom house recently sold for $1.825 million. Picture: realestate.com.au/sold

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In many of these suburbs, most of which were found on the fringes of Sydney and Brisbane, homes are often more affordable than the rest of the city, or are large and spacious properties offering value for money.

Capital city suburbs where houses are selling faster

Meanwhile, most of the suburbs with the biggest reductions in days on market for units were in Darwin and Melbourne.

Both cities have drawn buyers with relative affordability and a recovery in prices after long periods of stagnation.

Realestate.com.au data shows Driver in Darwin offers an 8.1% rental yield for units, with similar yields in Brinkin (7.5%) and Rosebery (7.4%), underscoring the desirability of these suburbs among investors.

Capital city suburbs where units are selling faster