Australia’s property market shifted in 2022 as prices and demand cooled around the country, and it’s blown out the time it takes to sell a property.
Houses in Canberra, Hobart, Melbourne and Sydney are staying on the market longer compared to October 2021 indicating there is less buyer competition, the latest Domain data on private treaty sales reveals.
Whereas houses in Brisbane, Adelaide, Darwin and Perth have decreased in average days on market annually.
Darwin is where houses are taking the longest to sell at 106 days, versus just 49 days in Brisbane.
The average days on markets for units in Hobart, Melbourne, Perth and Sydney are staying on the market longer compared to October 2021, whereas units in Canberra, Adelaide, Brisbane and Darwin have decreased in average days on market annually.
Again, units in Darwin take the longest to sell at 125 days, but Hobart is home to the units with the shortest sale time of just 44 days.
Despite the longer average sale times in the majority of markets, there is a silver lining - in all cities (except houses in Hobart) properties are still selling much faster than they were before the pandemic (March 2020).
“While the days on market have gone up compared to this time last year we need to remember that there was extraordinary demand last year, creating high levels of competition and pushing down days on market,” Domain’s chief of research and economics Dr. Nicola Powell said.
“While increasing interest rates and inflation have tempered demand, the current days on market are still lower than the previous five-year average for this time of year (apart from houses in Hobart). Many sellers can expect a sale provided they are meeting market price expectations.”
Days on the market may be significantly higher this year versus the 2021 property boom, but not all areas have experienced a slowdown.
Here is a list of the areas where properties are on the market for the shortest amount of time, according to Domain’s data, giving its sellers the strongest opportunities.
Fastest-selling suburbs in Victoria
There is a mix of regional and suburban areas in Melbourne spending less time on the market, including houses in Mildura, Casey - North, Cardinia, Frankston and Knox.
Fastest-selling suburbs in NSW
Houses in the outskirts of Sydney including Camden, Penrith and Campbelltown and inner west areas of Marrickville and Petersham are getting snapped up quickly.
Fastest-selling suburbs in Queensland
Areas within different pockets of Brisbane present good opportunities, including Wynnum - Manly, Bald Hills - Everton Park, Sunnybank, The Gap - Enoggera, Rocklea - Acacia and Ridge.
Fastest-selling suburbs in Western Australia
Houses in Joondalup, the primary urban centre of Perth's outer northern areas, alongside Kwinana, Serpentine - Jarrahdale, Rockingham and Wanneroo are being snapped up the quickest.
Fastest-selling suburbs in South Australia
There is a mix of great opportunities for different demographics in Onkaparinga, Tea Tree Gully, Marion, Tea Tree Gully and West Torrens.
Fastest-selling suburbs ACT
Weston Creek, Woden Valley, Belconnen and Tuggeranong are spending the least time on the market, and have all decreased their days on market compared to 2021.
Fastest selling suburbs Tasmania
An array of opportunities lie within North East, North West and Inner Hobart, alongside Sorell - Dodges, Ferry and Launceston.
But not all suburbs are selling their houses and units snapped up so quickly - on the other end of the scale, the suburbs listed below are where properties are taking the longest to sell, presenting the best opportunities for buyers.
Slowest selling suburbs Victoria
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Inner city areas of Melbourne present good opportunities due to the return of international students, permanent migrants and tourism.
Buyers should look for units in Maribyrnong, Essendon and Brunswick, and units and houses in Melbourne City.
Slowest-selling suburbs NSW
There is a mix of great buyer opportunities for different demographics and lifestyle needs in NSW.
Units in Sydney Inner City, Parramatta, Canterbury, Ryde - Hunter Hills and Canada Bay, and houses in popular travel destinations including Snowy Mountains, Pittwater, South Coast and Shoalhaven are all spending some of the longest time on the market.
Slowest selling suburbs Queensland
There is great potential for houses in popular travel destinations including Port Douglas - Daintree, Whitsunday and Gold Coast Hinterland, and units in Noosa.
Slowest-selling suburbs in Western Australia
Regional areas including houses in the Wheat Belt, Esperance, Mid West and East Pilbara are all spending some of the longest time on the market.
Slowest-selling suburbs in South Australia
One of Adelaide’s most affluent areas, Walkerville, is spending 3.3% longer on the market compared to last year. While units and houses in Adelaide City are spending longer compared to surrounding areas.
Slowest-selling suburbs ACT
Houses in North Canberra, Woden Valley and Tuggeranong have increased their days on market compared to 2021 indicating slightly eased competition for buyers.
Slowest selling suburbs Tasmania
There are viable opportunities on the West Coast, North Coast and South East Coast.
Domain’s latest data is an interesting read, but these aren’t the areas I’d necessarily recommend investing in.
After all, there is usually a reason why some properties are taking longer to sell while other well-located A-grade homes and investment-grade properties are still in short supply and selling quickly.
After all, it’s important to remember the fundamental rule of investment.
Finding a perceived “bargain” in a slow-moving market is really just a one-off profit.
On the other hand, you’ll make much more in the long term by buying a quality property in an investment-grade location.
That is… you need to make sure to invest only in areas where properties outperform over the long term.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
You also need to remember that property investing is a process, not an event.
That means that things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
In fact, the property, you eventually purchase will be the physical manifestation of a whole week, and made in the right order.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.