Searches for property are rising despite high borrowing rates and increasing home prices, with the volume of searches jumping substantially across a number of suburbs over the past year.
According to PropTrack's September Home Price Index, national home prices have risen for 21 consecutive months to hit a new peak. In the past 12 months, they have increased 5.7%.
Though interest rates are currently at their highest level in 12 years, strong population growth, scarce rental availability and home equity gains have continued to drive up demand from buyers.
Annual population growth has been above 2% since December 2023, while rental vacancies remain at just 1.3%.
With rent prices rising, rental supply close to record lows and heightened competition for rentals, more people may be considering home ownership over renting.
The impact of these factors are evident when we look at the growth in searches within the 'buy' section on realestate.com.au, which are 7% higher compared to September 2023.
However, in some suburbs, search activity has increased by an even greater proportion, reflecting the surge in interest for these particular areas.
Searches for Tallawong, Blaxlands Ridge and Kurraba Point rose the most among all Sydney suburbs in the past year. They increased by 63%, 42% and 40%, respectively. The newly opened metro line in Sydney is likely driving the increased interest in Tallawong.
In Melbourne, Koo Wee Rup, Dallas and Lang Lang East saw the largest surge in search activity. Compared to September 2023, ‘buy’ searches for properties were respectively 112%, 48% and 44% higher in these areas.
Among Brisbane suburbs, Beaudesert saw an 87% increase in searches, while Boonah and Woodford both experienced a 73% rise. They recorded the most significant growth in interest from those looking to buy.
| Suburb | City | % change in searches |
| Tallawong | Sydney | 63% |
| Blaxlands Ridge | Sydney | 42% |
| Kurraba Point | Sydney | 40% |
| Koo Wee Rup | Melbourne | 112% |
| Dallas | Melbourne | 48% |
| Lang Lang East | Melbourne | 44% |
| Beaudesert | Brisbane | 87% |
| Boonah | Brisbane | 73% |
| Woodford | Brisbane | 73% |
| Gawler Belt | Adelaide | 70% |
| Roseworthy | Adelaide | 70% |
| Gawler | Adelaide | 67% |
| Upper Swan | Perth | 54% |
| Wooroloo | Perth | 50% |
| Bullsbrook | Perth | 37% |
| Huntingfield | Hobart | 23% |
| Kingston Beach | Hobart | 21% |
| Brighton | Hobart | 20% |
| Durack | Darwin | 20% |
| Moulden | Darwin | 20% |
| Tiwi | Darwin | 18% |
| Gilmore | Canberra | 67% |
| Stirling | Canberra | 67% |
| Jacka | Canberra | 64% |
Gawler Belt, Roseworthy and Gawler led in terms of search activity growth in Adelaide. There were between 67% and 70% more ‘buy’ searches compared to a year prior.
In Perth, searches for Upper Swan, Wooroloo and Bullsbrook grew by 54%, 50% and 37%, respectively, which was the highest among all suburbs in the city.
Demand for housing is likely to remain elevated in the near term as the population continues to grow and the rental supply remains tight.
The anticipated interest rate decline, which is predicted for early next year, is expected to further boost demand as household borrowing power increases and housing affordability improves.
These market conditions could lead to an even greater increase in search activity from prospective buyers.
