A surge of Australians looking to buy a property has seen prices soar in some Sydney, Melbourne and Brisbane suburbs over the past two years.
Property prices have hit record highs this year and, despite the effects of Covid19 recent Domain Research shows median prices rose annually 6.7% across Sydney houses, 3.9% in Melbourne houses and 5.6% in Brisbane houses.
Of course such broad city wide generalisations are not very helpful has while some areas are booming, others are being left behind in the dust.
The Domain research found that by mapping price movements at a suburb level, the priciest suburbs tend to lead the property cycle.
For a closer look, let’s break the data down by each of Australia’s three major cities.
But note that only house data is included in Domain’s research. This means some inner-city suburbs are not featured in the maps because their housing stock is dominated by units.
Suburb with the biggest price increase: Alexandria (30.6%)
Suburb with the steepest price fall: Marsfield (10.1%)
Changes in Sydney property prices over the past two years
The research reveals that across Sydney, from the trough of early 2019 through to the end of 2020, prices fell in almost every Sydney suburb.
But any house price fall instigated by the coronavirus pandemic was short-lived.
By the end of 2020, the median hit a new record high of $1,211,488, which is just over $13,000 above the previous peak mid-2017.
Over the past two years, property prices have risen across almost all Sydney suburbs, with 94% enjoying property price growth, and a huge 43% of suburbs even seeing double-digit annual growth.
Leading the suburbs seeing the greatest growth was Alexandria with prices soaring by 30.6%.
Meanwhile far behind the pack was Sydney’s suburb of Marsfield which suffered a 10.1% decline in property prices over the same period.
Elsewhere, Blackheath and Palm Beach are the only two suburbs that have shown stable and continued annual growth over the past two years.
Other suburbs have shown very minor annual price falls, largely Central Coast suburbs such as Charmhaven, Hamlyn Terrace and Wadalba, the research reveals.
Suburb with the biggest price increase: Blairgowrie (24.8%)
Suburb with the steepest price fall: Clayton (11.1%)
Changes in Melbourne property prices over the past two years
Similar to the market in Sydney, despite the economic shock to the Covid-19 extended lockdown in Victoria, Melbourne’s housing market defied the odds with any price decline being short-lived.
By the end of 2020, the median hit a new record high of $936,073 which is $28,000 above the previous record in early 2020.
Dr. Nicola Powell, Senior Research Analyst at Domain explained:
“First-home buyers became active, utilising incentives, low mortgage rates and a deeper savings pot as Covid restrictions reduced discretionary spending.
Upsizing buyers were enticed by cheaper credit and altered their wish-lists post-lockdown.”
Over the past two years, 91% of Melbourne’s suburbs enjoyed house price growth as buyers continue to be attracted by affordability, with price growth even spread across outer areas.
All suburbs that Domain mapped in the North East of Melbourne rose annually, while 97% of suburbs in the West (Niddrie and Maddingley the exceptions) and 95% of suburbs in the South East (apart from Sandhurst and Dandenong) also enjoyed a price hike.
By December, Blairgowrie took the title as the suburb with the largest property price increase across Melbourne with a 24.8% rise.
Although substantial price rises were also recorded in Portsea, Flinders, Ventnor, McCrae, and San Remo on the Mornington Peninsula.
“[The data shows] lifestyle and holiday locations are beginning to accelerate in price as working remotely becomes normalised and international borders remain closed,” Dr Powell said.
Suburbs including Bacchus Marsh, Capel Sound, Darley, Diggers Rest, Manor Lakes, Mickleham, The Basin, Werribee, Wollert and Yarra Glen, have also continued to show annual growth over the past two years.
Suburb with the biggest price increase: Thorneside (28.5%)
Suburb with the steepest price fall: Burpengary East (8.4%)
Changes in Brisbane property prices over the past two years
During the height of Covid-19, Brisbane’s housing market defied the odds, shone through, and even came out relatively unscathed.
By the end of 2020, Greater Brisbane’s property price median hit a new record high of $616,387, which is $28,000 above the previous record set in early 2020.
House prices have risen modestly over each quarter of the 2020 calendar year, rising a further 0.8% over the December quarter to end the year 5.6% higher than the last.
Dr Nicola Powell, Senior Research Analyst at Domain explained:
“First-home buyers became active utilising incentives and low mortgage rates became the norm.
Upsizing buyers were enticed by cheaper credit and altered their wish-lists to think more about property characteristics such as space and lifestyle, rather than commute time and distance to the CBD.
The rising interest from interstate buyers and the movement of residents from regional Queensland into Greater Brisbane will continue to support demand. Outer suburban and lifestyle areas will be the main beneficiaries.”
By December 2020, 85% of Brisbane’s suburbs recorded annual growth.
Double-digit percentage price rises were even noted across 17% of suburbs.
In Brisbane’s north, 88% of suburbs increased in price, 86% in Brisbane’s west, and 85% in Bayside South.
In Bayside North and Brisbane East growth was seen in around 80% of the suburbs in the area.
Brisbane’s suburb of Thorneside recorded the strongest growth across all the suburbs with a 28.5% increase in house prices over the two-year period.
Virginia, Highgate Hill, Carina Heights, and Yeronga also saw house prices surge more than 20%.
Despite most Brisbane suburbs enjoying property price growth, 15% of suburbs recorded a fall in median house prices by December 2020.
The steepest price falls were seen in Ormiston (8%) and Burpengary East (8.4%).
Now is the time to take advantage of the opportunities the current property markets are offering.
Sure the markets are moving forward, but not all properties are going to increase in value at the same rate. And some sectors of the market will continue to languish.
Now, more than ever, correct property selection will be critical.
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