Australia’s property prices increased at a record pace in 2021 with Domain’s latest quarterly house price report showing that the national median house price surged 25.7% and units by 7.7% year-on-year.
But some suburbs outshone the rest.
While the median house price in Sydney rocketed 33.1% to a new $1,601,467 median, those numbers were absolutely overshadowed by Sydney’s modest northern beaches suburb of Warriewood.
Located around 26km north of the CBD between North Narrabeen and Mona Vale, Warriewood’s property prices achieved an enormous 51.6% increase over the course of 2021 to set a new record median house price of $2.19 million.
Units in the suburb, meanwhile, surged 28.8% to $1.185 million.
Next on the list was the luxury beach suburb of Palm Beach where median house prices jumped 45.2% to $5.7 million over the year.
In joint 3rd place on the list were Manly and Marsfield which both enjoyed a 45% increase in their annual median house prices to $4.405 million and $1.305 million respectively.
4 suburbs with largest annual house price growth
|Rank||Suburb||New median price||YOY increase|
|2||Palm Beach||$5.7 million||45.2%|
Australia’s sea change gathers pace
The Covid-19 pandemic shone a spotlight on the whole of Sydney’s northern beaches region as people continue to re-evaluate what they want from their homes.
The sea- or tree-change shift towards working from home and working remotely refocused people’s attention on what is around them, encouraging buyers to venture out of their existing neighbourhoods in search of a different lifestyle.
The shift has seen people migrate to Sydney’s north shore in droves in search of the perfect outdoor lifestyle with beaches, fresh ocean breezes, and great walks.
And in turn, the trend has driven property prices skywards.
The locations which will outperform in 2022
While the sea-change effect has shifted Australia’s property landscape, the importance of neighbourhood has also come under the spotlight.
After a stellar year in property in 2021, it's clear that there are some particular locations that will outperform in 2022.
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In my mind, the ability to work, live and play all within 20 minutes’ reach is the new gold standard desirable lifestyle.
One thing I know many of those living in Melbourne learned about the importance of their “third place”.
If our first place is home and our second place is work or the office, it has been the ability to go to a third-place that was taken away from many of us during the lockdowns.
It may be a favourite café, a gym or a place of worship and even local shops and pubs.
They missed that feeling and connection to others, having an outlet to take a break from family or colleagues for a short period to reset.
A gym or exercise centre has been substituted for a favourite walking or cycling path with green space and fresh air.
So, all these features combined will be a major requirement and will create huge demand moving forward.
And this is why we’ll see the rise of the 20-minute neighbourhood.
It seems that in our new “Covid Normal” world, people love the thought that most of the things needed for a good life are within a 20-minute public transport trip, bike ride, or walk from home.
Things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs.
So when you’re looking for your next property purchase… remember… location, location, location is key to finding the next booming suburbs.