Top locations to buy property in your state in 2022
While 2022 is likely to be a more "normal" year, property prices will rise strongly in many areas.
A round up of locations we believe are on the up...
Victoria...
A year ago, many forecast that Melbourne would "revel in the post-lockdown freedoms" but the restrictions returned, making it the most locked-down city on the planet.
The population drift to the regions gathered pace, prompting jokes that the most liveable city was now the most leavable city. Despite everything, prices rose in 2021, with 19% growth for houses and 9% for units.
If the restrictions continue to ease and the borders remain open, 2022 will be a strong year for Melbourne real estate, boosted by the return of overseas migrants and international students. Late in 2021, we saw evidence of improvement in the inner-city markets as restrictions eased and they may benefit from the foreign factor in 2022.
Another trend emerging late in 2021 was the uplift in buying in the outer-ring precincts as buyers chased affordability. We expect to see good price growth in municipalities such as Hume and Whittlesea in the north, Casey and Frankston in the south-east and Brimbank, Wyndham and Melton in the west.
Regional Victoria has been, for the past four years, a national leader of the lifestyle exodus craze and there is evidence that some of the trend leaders have passed their peaks, including Geelong and Ballarat. But there is further growth to come in Bendigo and the towns of Mitchell Shire.
Locations further afield are rising, including Warrnambool, Mildura and the towns of East Gippsland.
Queensland…
Brisbane has delivered on our prediction of 12 months ago and became a national growth leader in 2021.
By late in the year, it was recording the fastest rate of house price growth in the nation.
Brisbane is benefiting from interstate migration at nation-leading levels, an elevated infrastructure spend and success in resisting the pandemic.
With confirmation that south-east Queensland will host the 2032 Olympic Games, suddenly everyone wants to own a piece of Brisbane.
There is growth in all precincts and across all price points, but with particularly notable increases in sales activity in the affordable areas of Logan City, Ipswich City and the Moreton Bay region. The under-valued Redcliffe Peninsula will be targeted in 2022, as will the middle-ring suburbs on Brisbane's northside.
Regional Queensland is becoming a national leader on sales activity and price growth. Large numbers of Australians are moving north and targeting lifestyle areas like the Sunshine Coast, the Gold Coast, Hervey Bay and Townsville.
Central Queensland cities including Rockhampton, Bundaberg and Gladstone will grow in 2022, but our No.1 regional pick remains the inland city of Toowoomba, boosted by game-changing transport infrastructure and affordable lifestyle. Toowoomba: Australia's second biggest inland city is being targeted by all kinds of buyers, inspired by the new infrastructure and affordable houses. Most suburbs had double-digit growth with Rangeville, East Toowoomba and Withcott all up 15%-17%.
Western Australia…
Perth will be a standout market among the capital cities in 2022. It was an under-achiever in 2021 relative to the nation's best, although growth of 15% for houses and 12% for units would normally be considered a good year.
The coming year will be stronger. Property markets are being boosted by improvements in the West Australian economy, with the resources sector rising and a growing list of big infrastructure projects in Perth. Stubborn resistance to the pandemic is helping the city's prospects.
Vacancies are well below 1%, rents are rising and sales activity continues to rise. Expect a stronger response from prices in 2022.
It's a great time to be a first-home buyer in Perth, which is now Australia's most affordable capital city, with high levels of government support.
This cohort is leading the Perth revival, with increases in buying activity in outer-ring areas such as the local government areas of Wanneroo, Rockingham, Gosnells, Kwinana and Armadale. Solid middle-market areas, including the municipalities of Stirling and Cockburn, are poised for good growth in 2022.
The past year showed further evidence of regional areas south of Perth joining the nationwide trend towards lifestyle destinations, notably Mandurah and Busselton. Broome in the far north is another market on the rise.
Key resources centres such as Port Hedland and Karratha continue to grow after finding the bottom of the trough in 2018, with still some way to go to reach the peak levels of the previous mining investment boom.
The summer 2021-22 edition of Hotspotting's Price Predictor Index classified 20 of the 21 Wanneroo suburbs as growth markets.
This outer-ring precinct in Perth's north is a leading population growth area, targeted by first-home buyers and others for its affordability, amenities and transport links.
Few WA locations embody the exodus trend better than the seaside suburbs of Rockingham City in Perth's far south, with houses still in the $300,000s and $400,000s. There were 3000 house sales in 2021. Hillman (up 23%) led the price growth, with Rockingham and Cooloongup (both up 17%).
South Australia…
Underrated Adelaide has transitioned from being a consistent market (in 2020 it produced price growth in every month except one after the pandemic struck in February) to be one of the most upwardly mobile markets in the nation.
CoreLogic figures published in December 2021 showed that Adelaide had the second fastest house price growth (behind Brisbane) in November and in the November quarter, with annual growth rising to 24%.
This has sprung from a burgeoning economy, good control of the pandemic and excellent value for money relative to the larger cities (median dwelling price $560,000). Sales activity is elevated and vacancy rates are ultra-low across the city.
There is evidence of big growth in all market sectors.
Middle-market precincts - including the LGAs of Mitcham, Marion, Port Adelaide-Enfield and Tea Tree Gully - offer quality suburbs in the $500,000s and $600,000s, sometimes lower.
There is growing activity in the lower-priced northern municipalities like Salisbury and Playford, which have the cheapest houses in capital city Australia. Some of Adelaide's largest employment nodes are in this precinct. Houses in the $200,000s and $300,000s will lure first-timers and investors. In the south, the Onkaparinga LGA has lifestyle and low prices.
In regional South Australia, the Victor Harbor area continues to rise and there are signs of buoyancy in regional centres like Murray Bridge, Mount Gambier and Port Lincoln. The Iron Triangle towns of Whyalla, Port Augusta and Port Pirie will rise in 2022, boosted by mining and renewable energy projects.