10 Aussie suburbs where buyers have a negotiating edge

• Weren’t investment-grade
• Where demand had not been falling
• Where prices had not increased by at least 45 per cent over the past decade

This left a small portion of suburbs with buyer-favouring conditions where, even if they were to offer a 10 per cent discount, vendors would only be losing a fraction of the profits gained in the previous decade.

NSW boasts five of the top 10, followed by Victoria’s three, while Queensland rounds out the top spots with two. Additionally, 80 per cent of the top 10 are house markets, with the remainder comprising units.

Scott Spencer, chief executive officer at Well Money, said the ranking was designed to assist investors desiring both a negotiating edge and an investment in a high-quality location.

Explaining why buyers have the edge in these reasons, he posited that it’s because “market conditions have been turning in their favour, as demand relative to supply has been falling”.

“All of them have low inventory levels, which will put upward pressure on price growth, and low vacancy rates, which will put upward pressure on rental growth. So the data suggest that investors would be more likely than not to enjoy positive returns,” he said.

Despite these findings, he did implore investors to be financially practical given “interest rates have been rising and will probably increase even further in the first half of 2023”.

“Investors need to budget for higher repayments,” he said, adding that “it’s risky to enter the market if you don’t believe you’d have the capacity to cope with higher interest rates”.

The top 10 are as follows:

1. Alstonville, NSW (House)

December’s asking price of $901,600 was part of a 165 per cent growth over the previous decade. Vendors selling at a 10 per cent discount risk losing 1.1 years of profit. Alstonville’s inventory level is currently 2.2 months.

2. Marong, Victoria (House)

Over the last 10 years, house prices in this area have grown 127 per cent, culminating in a median asking price of $574,240 at the end of last year. Vendors risk losing 1.3 years of profit if they sell at a 10 per cent discount, while inventory levels rest at 3.8 months.

3. Valla Beach, NSW (House)

Median asking prices in December were $560,000, courtesy of a 147 per cent increase over the previous 10 years. Valla Beach boasts an inventory level of 2.3 months, while vendors could risk losing 1.3 years of profit should they sell at a 10 per cent profit.

4. Caloundra West, Queensland (House)

Vendors could risk parting with 1.4 years of profit should they sell at a 10 per cent discount at the median asking price (as of December 2022) of $749,000 — part of 125 per cent growth across the previous decade. Inventory levels are currently 1.7 months.

5. Burleigh Waters, Queensland (House)

The first suburb with a December median asking price exceeding $1 million ($1.5 million), this Gold Coast suburb experienced 193 per cent growth over the last decade, placing vendors in the position of losing 1.4 years of profit if they sell at a 10 per cent discount. Inventory levels currently sit at 2.8 months.

6. Highett, Victoria (Unit)

The first unit market entry sees buyers asked to fork out $630,000 for a unit — a price that grew 80 per cent over the last decade. On the vendor front, they stand to lose 1.4 years of profit if they sell at a 10 per cent discount, while inventory levels presently are 5.3 months — the highest among the top 10 suburbs.

7. Kellyville Ridge, NSW (Unit)

At $508,250, the median asking price in this suburb grew 89 per cent over the previous decade. Sellers could potentially part with 1.4 years of profit should they choose to sell at a 10 per cent discount. Inventory levels are 1.3 months, the second lowest of the top 10 suburbs.

8. Kariong, NSW (House)

House prices climbing 160 per cent in the 10 years prior meant median house prices in this suburb ended 2022 at $952,750, meaning vendors risk losing 1.4 years of profit should they sell the property at a 10 per cent discount. Inventory levels rest at 1.5 months currently.

9. Figtree, NSW (House)

At a tick over $1 million ($1,070,000), the median house price in this south coast suburb is the second highest on the list, having soared 148 per cent over the previous decade. There are 1.1 months of inventory available in the region, while vendors would lose 1.4 years of profit if they sell their property at a 10 per cent discount.

10. Somerville, Victoria (House)

Concluding last year with a median house price of $800,000 — courtesy of a 145 per cent increase over the previous decade — vendors in Somerville can expect to lose out of 1.5 years of profit if they were to part ways with their property at a 10 per cent discount. While at 5.2 months, the suburb boasts the second-highest inventory levels of any ranked suburb.