The real estate market in Australia has experienced unprecedented growth this year, despite the uncertainties caused by the ongoing pandemic.

CoreLogic’s Best of the Best report listed suburbs reporting the best results for each market indicator.

Market indicator

Houses

Units

Highest median value

Bellevue Hill (NSW)

$8.74 million

Point Piper (NSW)

$3.22m

Most Affordable Median Value

Kambalda East (WA)

$90,155

Woree (Qld)

$158,846

Fastest annual growth in values

St Andrews Beach (Vic)

58.6%

Yamba (NSW)

56.6%

Highest rental income

Kambalda West (WA)

14.7%

Woree (Qld)

10.7%

Largest annual rent increase

Bicheno (Bag)

40.9%

Narooma (NSW)

33.7%

Eliza Owen, CoreLogic’s head of research, said the Australian real estate market was able to report strong gains over the course of the pandemic, with total real estate reaching a record $9.4 trillion during the year to November.

“The strong housing market performance during the year was driven by multiple factors, including low interest rates, fiscal and institutional support for households, high household savings and relatively low levels of advertised stocks,” said Ms. Owen.

“Residential turnover rates were also relatively slow for several years before these factors boosted housing demand, which may also explain the high sales volume over the past 12 months, which was 32.6% above the 10-year annual average in November. .”

Overall, house prices rose 24.6% over the year to November, while unit prices rose 14.2%.

In terms of location, regional housing values ​​showed a stronger growth of 25.2% than the 21.3% in capital cities.

Ms Owen said the popularity of regional housing markets remains a common theme.

“The quiet coastal suburb of Yamba, in the Coffs Harbour-Grafton region of NSW, achieved the highest annual unit growth rate of suburban units in all of Australia,” she said.

Other regional suburbs that posted stellar annual house price increases include Geelong (unit prices were up 41.7%), Fraser Island in Wide Bay (unit prices were up 48.2%) and Campbell Town in Tasmania (house prices were up 50. 5%).

“This may be due in part to the way COVID-19 continued to shape demand trends, with coastal or leafy environments being more desirable as some employees were given the ability to work remotely,” said Ms. Owen.

Ms Owen said it is important to also recognize the weakening of the housing boom in the second half of the year, which was due to several factors, including the increase in advertisements and mounting concerns about affordability.

“The constraints of slightly tighter credit conditions, the erosion of housing affordability and a higher number of advertisements being added to the market are expected to yield softer growth rates for real estate values ​​in 2022,” she said.

“These forces are an accumulation of headwinds for real estate market performance. Softer growth rates are likely to coincide with fewer purchases, with selling and offering activity eventually moving in price with momentum.

Photo by @centelm on Unsplash.

Top Suburbs: Gladesville, Marrickville, Emerald, Hebersham, Lalor Park

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