Several suburbs in Australia have become the best over the past year in terms of house prices and rental growth.
Two separate reports from PropTrack showed that demand for homes for sale and for rent has surged over the past year, with supply for both market segments continuing to shrink.
The biggest rent earners
PropTrack economics analyst Megan Lieu said a common trend in the rental market over the past two years after the pandemic began was "looking for change decor" among Australian renters.
"This is particularly evident in the five fastest growing suburbs for weekly rents in 2021 – three of these suburbs are located in New South Wales, where residents have suffered prolonged closures and the Buying a property has become more and more difficult,” she mentioned.
Suburbs with the highest annual growth in median rent
Suburb
Median rent ($)
Annual growth (%)
East Lindfield, New South Wales
1 390
46.3
Encounter Bay, SA
510
45.7
Palm Beach, New South Wales
1 450
45.4
North Balgowlah, New South Wales
1 600
42.2
Doonan, Qld
880
40.8
Ms Lieu said large family homes in East Lindfield have become in high demand, particularly among households looking for larger spaces for a home office.
"For many, working from home will remain the norm in 2022 – we expect demand for coastal, regional and beachfront suburbs to remain high this year and drive their prices to continue to rise weekly rentals," she said.
The best performing housing markets
In terms of housing markets, 127 suburbs saw annual gains of $50,000 or more every month over the past year.
Eleanor Creagh, senior economist at the REA Group, said the surge in mortgage lending has contributed to the rapid rise in property prices.
"Across Australia, 178 suburbs have seen house prices increase by $500,000 or more in the past 12 months, while another 832 suburbs have seen their values ??increase by more of $200,000 at the end of the year," she said.
Mr. Creagh said that, as with rental markets, the trend to seek larger spaces and larger blocks was a key driver of demand last year.
This has prompted many buyers to seek out properties in the outer suburbs and regions, especially those in beachfront and coastal areas.
"With more time spent at home and the continuation of remote working, space and lifestyle have become an increasingly important consideration," she said. ]
The prime housing segment has seen some of the strongest price increases over the past year.
"It's no surprise given that property prices have surged across Australia, meaning high value suburbs will see the dollar value of price increase the most," Ms. Creagh said.
New South Wales accounted for most of these high growth areas.
In fact, Dover Heights saw the largest monthly increase in house prices at around $111,500, bringing its median price to $5.66 million.
Point Piper, on the other hand, saw the largest monthly increase in unit prices at $57,500, pushing its median unit price to $3.4 million.
"These suburbs mostly have one thing in common, apart from phenomenal price growth – they are all seaside or waterfront suburbs," Ms Creagh said. ]
—
Photo by @johnarano on Unsplash
Top Suburbs:
scarborough
,
coolbellup
,
sunshine
,
rockhampton west
,
penrith
Get help with your real estate investment
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the loan features to suit your needs.
Just fill in a few details below and we'll then arrange to call a mortgage broker local to contact you and determine the characteristics or types of loans that suit your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can review
our privacy policy here
