The Australian suburbs that saw the biggest increases in house prices
House prices have climbed more than 50% during 2021 in a few key suburbs scattered across Australian capitals.
New research suggests the price hikes, which have been seen over the past year despite severe lockdowns and COVID-19 restrictions, are unlikely to happen again.
The high-end housing markets in Melbourne’s Mornington Peninsula, the northern beaches in Sydney and the Gold Coast and Sunshine Coast in south-eastern Queensland were among the top performers of the year.
These coastal settings presented an attractive lifestyle alternative for confined city dwellers during 2021.
St Andrews Beach on Victoria’s Mornington Peninsula recorded the strongest growth in home values ââafter rising 58.6% according to CoreLogic’s Best of the Best report.
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The cost of homeownership in the area hit a median of $ 1,473,279 in the 12 months ending November 2021 and the neighboring suburb of Fingal has increased by 47.1%.
St Andrews Beach is technically part of Melbourne, but is used as a beach getaway by many city dwellers who wish to avoid the crowded suburbs of Portsea and Sorrento.
Meanwhile, in Mosman, one of Sydney’s wealthiest suburbs, 323 extraordinary real estate deals worth nearly $ 1.8 billion were recorded for the year.
CoreLogic’s head of research, Eliza Owen, pointed out that the movement from cities to regions has increased as work-from-home options open up.
“This may be in part due to how COVID-19 has continued to shape demand trends, with coastal or lush green environments being more desirable as some workers have been allowed to work remotely,” she said. .
Ms Owen also suggested that the price increases may simply reflect the cyclical market volatility that had previously been seen in more expensive cities such as Melbourne and Sydney.
âThis means that during the recovery phase of the housing market cycle, the expensive real estate markets in these cities will generally experience higher growth rates,â she said.
Corelogic’s report also found that many CBD employees also traded high-rise apartments for suburbs, leading Kurnell in southern Sydney to take second place in value growth. houses.
Kurnell saw home values âârise 54.5%, while South Turramurra on Sydney’s North Shore came in third with a 52.5% increase in home values.
“The results of this report are truly extraordinary,” said Ms. Owen. âI wouldn’t have expected to see gains of nearly 60% in some of these suburbs.
“These are not the kind of numbers that I would expect to see again for a very long time,” she added.
House prices have risen on the back of unusually low interest rates, government stimulus measures and cash savings caused by the COVID-19 pandemic and the lockdowns that have followed.
While the value of single-family homes rose 24.6% in 2021, the value of units also rose 14.2% nationally.
The peaceful coastal suburb of Yamba in the Coffs Harbor area of ââNew South Wales saw the strongest annual unit price growth at 56.6%.
Higher value growth was seen in many regional suburbs, including Ocean Grove units in Geelong (up 41.7% year-on-year), Fraser Island units in Wide Bay (up 48.2% year-on-year) %) and homes in Campbell Town, Tasmania (up 50.5%).
Greater Brisbane also saw prices skyrocket with units on Point Lookout in North Stradbroke Island jumping 44.2 percent to a median of $ 695,911.
CoreLogic’s report found that the units were in Australia’s top 10 most expensive sales for the year with three units in Sydney’s Barangaroo Tower for over $ 40 million.
Australia’s top 10 real estate sales for the year totaled $ 407 million and ranged from $ 31,250,000 to $ 60 million.
During the year 2021, sales volumes reached the highest levels seen in almost 18 years after estimated sales of 614,635 according to CoreLogic.
Nationally, home values ââjumped 22.2% during the year, the biggest increase since 1989 and well above the 3.1% growth rate seen in 2020.
Trips to the regions saw the town of Gerringong in Illawarra register an increase of 56.4% to a median of $ 1,681,227 during the year.
The neighboring towns of Kiama Heights and Showlhaven Heads also saw their prices increase by 52.8% and 52.7% respectively.
However, Ms Owen said the Australian real estate market was likely to have peaked due to worsening affordability constraints on financing.
âThe constraints of slightly tighter credit conditions, erosion of housing affordability and a higher level of listings added to the market are expected to result in lower growth rates in 2022,â she said.
âThese forces are an accumulation of headwinds for the performance of the real estate market. Lower growth rates are likely to coincide with lower purchases. “
Ms Owen said plans to return workers to the office could also lead to a drop in demand for regional properties in 2022.
âIn the short term what is most likely is that we will still see demand for regional Australia due to sheer affordability compared to capitals,â she said.
“Over the longer term, I would expect most of the housing market to enter the downturn.”
CoreLogic concluded that 2021 has brought an unprecedented year of growth and a litany of exceptional results for the Australian residential housing market.