All the evidence points to an unmistakable theme for real estate nationwide recovery, according to the Hotspotting Top 10 National Best Buys report for the next six months.
The report analysed regions across the nation to reveal which areas are primed for superior capital growth this year.
The research included assessments on economic and property fundamentals such as infrastructure, employment nodes, urban renewal as well as lifestyle and interstate migration factors.
The Top 10 Best Buy locations featured three locations in Queensland and Western Australia, two in Victoria, and one each in New South Wales and South Australia.
Hotspotting Director Terry Ryder said a number of factors were influencing markets around the nation with both big cities and smaller regional locations recording positive market metrics.
Ryder said: “Improving data on prices in the biggest cities recently has added to the ongoing strong performance in smaller cities and regional areas, the worsening shortage of rental properties, the significant increases in rents and more optimistic consumer sentiment.
“It adds up to a scenario where prices will likely rise in most of the nation’s key markets in 2023 – which was our forecast before the year started.
“Even the big bank economists have turned more positive in their outlooks, although they continue to under-estimate the underlying strength in real estate markets in our assessment.”
The key national factors influencing markets, which were outlined in this report in December, include:
- The shortage of homes, relative to demand
- The serious undersupply of rental properties
- Ongoing growth in residential rentals
- The return of overseas migrants and students in large numbers
- The increase in the migrant intake by the Federal Government
- Ongoing strength in the Australian economy, with unemployment remaining low
- The impetus from major infrastructure projects
- The expected end of the cycle of rising interest rates early in 2023
