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John McGrath - Australia's Best Performing Suburbs In 2020

John McGrath - Australia's Best Performing Suburbs In 2020

John McGrath
John McGrath
25/01/2021 | 3 MIN READ

CoreLogic’s Best of the Best 2020 report reveals the top performing suburbs across the nation in both metro and regional localities on a state-by-state basis. 


This annual report gives us an insight into the specific market forces pushing up both capital and rental values in various areas. However, this year is different because COVID-19 brought about a range of brand new market forces, with some surprisingly positive results.  


One major new market force was border closures, which had a material impact on both capital values and rental values in some areas. 


Capital values in popular South-East Queensland coastal areas rose strongly on the back of heightened demand for lifestyle homes amongst locals and Sydney and Melbourne migrants. 


Many Sydneysiders and Melburnians rushed to buy up north ahead of others who preferred to wait for the border to open so they could physically inspect homes. The early buyers bought site unseen and inspected homes via video. The surge in interstate competition created FOMO for locals, so we ended up with very strong selling conditions in areas such as the Sunshine Coast and Gold Coast. 


The border closure in Western Australia created a significant change in rents. It forced thousands of FIFO workers to relocate permanently to retain their jobs. Mining activity expanded in 2020, with miners limiting new recruits to permanent residents to help stop COVID-19 getting on site. 


As a result, Western Australia dominated the top suburbs for rising weekly rents nationally in 2020. House rents soared by 18-20% in Bulgarra and Pegs Creek, which adjoin mining centre, Karratha; and by 13% in Bellevue and Wembley Downs in Perth and Meadow Springs and Halls Head in seaside Mandurah in the state’s south-west.


Another unique market force was the en masse relocation of people from major cities to regional areas due to young families working from home and downsizers bringing their seachanges forward. 


Reflecting this, it was two regional suburbs that had the highest capital growth nationally in 2020. They were Sunshine Beach on the Sunshine Coast (27.6% growth in house prices) and Horsham in North West Victoria, about 300km from Melbourne (25.7% growth in apartment prices).


Let’s take a look at the suburbs that recorded the best capital growth for both houses and apartments in the East Coast capital cities and regions.  

Sydney

Greatest 12 Month Change In Values - Houses

  1. East Ryde 19.2% (Median price $1,641,990)
  2. Davistown, Central Coast 19.1% ($813,438)
  3. North Ryde 18.6% ($1,547,430)
  4. West Ryde 18.2% ($1,497,769)
  5. Ryde 16.5% ($1,553,991)

 

Greatest 12 Month Change In Values - Apartments 

  1. Avalon Beach 12.2% ($978,824)
  2. Wamberal, Central Coast 12.1% ($777,262)
  3. Warriewood 11.3% ($1,065,078)
  4. Blue Bay, Central Coast 10.1% ($590,472)
  5. Bellevue Hill 9.5% ($1,270,755)

 

Regional NSW:

Greatest 12 Month Change In Values - Houses 

  1. Bombala, Snowy Monaro Region 22.6% (Median price $242,369)
  2. Scotts Head, Mid North Coast 20.8% ($511,038)
  3. Malua Bay, South Coast 19.2% ($646,576)
  4. Tarro, Newcastle/Lake Macquarie Region 19.1% ($421,660)
  5. Moree, New England/North West Region 18.5% ($175,305)

 

Greatest 12 Month Change In Values - Apartments 

  1. Griffith, Riverina 18.6% ($214,430)
  2. Batemans Bay, South Coast 17.9% ($367,139)
  3. Kooringal, Riverina 17.5% ($208,239)
  4. Bowral, Southern Highlands 15.2% ($681,523)
  5. Bomaderry, Shoalhaven 14.7% ($361,907)

 

Melbourne: 

Greatest 12 Month Change In Values - Houses 

  1. Collingwood, 11.9% (Median price $1,200,347)
  2. Bittern, Mornington Peninsula 9.7% ($746,653)
  3. Crib Point, Mornington Peninsula 9.0% ($653,251)
  4. Dingley Village 8.3% ($904,157)
  5. Dromana, Mornington Peninsula 7.4% ($758,402)

 

Greatest 12 Month Change In Values - Apartments 

  1. Kingsville 16.6% ($520,063)
  2. Tarneit 12.0% ($441,614)
  3. West Footscray 11.5% ($507,373)
  4. Point Cook 10.0% ($505,456)
  5. Hadfield 9.9% ($568,056) 

 

Regional Victoria: 

Greatest 12 Month Change In Values - Houses 

  1. Murtoa, North West 22.4% (Median price $125,313)
  2. Ararat, North West 21.7% ($225,997)
  3. Mortlake, Warrnambool/South West 17.9% ($215,109)
  4. Horsham, North West 16.6% ($243,494)
  5. St Arnaud, North West 15.8% ($172,521)

 

Greatest 12 Month Change In Values - Apartments 

  1. Horsham, North West 25.7% ($225,718)
  2. Mildura, North West 24.1% ($222,155)
  3. Lorne, Geelong 17.1% ($728,175)
  4. Bendigo CBD 16.5% ($292,487)
  5. Golden Square, Bendigo 16.4% ($306,226)

 

Brisbane: 

Greatest 12 Month Change In Values - Houses 

  1. St Lucia 13.6% (Median price $1,367,721)
  2. Jindalee 13.1% ($632,150)
  3. Ormiston 12.6% ($733,209)
  4. Russell Island 12.5% ($233,816)
  5. Walloon, Ipswich 11.5% ($416,821)

 

Greatest 12 Month Change In Values - Apartments 

  1. Springwood 13.7% ($249,840)
  2. Woorim 12.6% ($413,011)
  3. Capalaba 11.6% ($346,788)
  4. Thorneside 10.2% ($335,533)
  5. Wynnum 10.2% ($436,834)

 

Regional Queensland: 

Greatest 12 Month Change In Values - Houses 

  1. Sunshine Beach, Sunshine Coast 27.6% (Median price $1,643,454)
  2. Miles, Darling Downs/Maranoa 25.6% ($140,641)
  3. Sunrise Beach, Sunshine Coast 24.4% ($1,230,062)
  4. Mount Morgan, Central Queensland 21.4% ($111,555)
  5. Cloncurry, Outback Queensland 19.7% ($147,046)

 

Greatest 12 Month Change In Values - Apartments 

  1. Currumbin, Gold Coast 24.9% ($632,749)
  2. Bilinga, Gold Coast 21.8% ($664,355)
  3. Palm Beach, Gold Coast 20.8% ($560,203)
  4. South Gladstone, Central Queensland 19.9% ($136,051)
  5. Tugun, Gold Coast 18.7% ($566,091)

 

ACT: 

Greatest 12 Month Change In Values - Houses 

  1. Flynn 15.5% ($724,136)
  2. Hughes 14.6% ($1,121,562)
  3. Garran 14.5% ($1,176,520)
  4. Reid 14.3% ($1,555,810)
  5. Mawson 14.2% ($881,975)

 

Greatest 12 Month Change In Values - Apartments 

  1. Ngunnawal 12.1% ($463,880)
  2. Casey 8.4% ($503,787)
  3. Barton 7.9% ($583,848)
  4. Moncrieff 7.8% ($517,407)
  5. Hawker 7.5% ($370,135)


Source: Best of the Best 2020, CoreLogic 


Other pandemic-induced market forces, such as the desire for more space and a shift from inner city apartments to middle and outer ring houses amongst both buyers and renters, will remain in 2021 as we continue to live with COVID-19. 


Most importantly, the lowest mortgage rates we’ve ever seen are creating a remarkable opportunity in 2021 to buy quality property at very low ongoing costs, with the RBA not expecting rates to change for at least three years.


The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters. 

 

This article originally appeared in The Real Estate Conversation (January 25, 2021)

 

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