COVID-19 has pushed Aussie home price growth as much as 150 per cent higher than would have been the case without a pandemic, a KPMG report revealed.
The hot market is leaving many Aussies feeling defeated, however there are still many suburbs that are attainable around the country.
Also read: How to invest in a booming property market
Best locations to buy
1. Petersham, NSW
“Petersham is a great investment opportunity if you're trying to avoid putting all your eggs in the regional Sydney property market and want to stay in a capital city,” Edge said.
Petersham is 8km from the Sydney CBD, with lots of parks, cafes and dog friendly attractions.
Median price of a house is $1,732,500 and the median price for a unit is $715,000.
2. Orange, NSW
“Orange has outperformed several capital cities in property price growth over the past decade. It has had steady growth for the past 20 years and the values have almost tripled in 20 years,” Edge said.
“Orange’s economy is benefiting from healthy regional tourism numbers, a strengthening resources sector, high world demand for quality agriculture and viticulture products and some good infrastructure projects. People are relocating from capital cities to regional areas, especially since COVID.”
Orange also poses great lifestyle opportunities, has a wine and foodie culture, great schools and jobs.
The median price for a house is $530,000 and the media price for a unit is $329,000.
3. McCrae, VIC
“McCrae boasts a modest rental yield but the growth rate for houses is really why it has such an appeal,” Edge said.
“It's a strong choice as long as you believe in the regional trend. The 5-year compound growth rate for McCrae is 10.8 per cent for houses.”
The median price for a house is $1,170,000 and the median price for a unit is $597,000.
4. Melton, VIC
“Prices are quite low in Melton, so it's a great option if you're on limited capital.Its 5-year compound growth rate is 8.9 per ent for houses and 7.1 per cent for units which is very strong,” Edge said.
“It’s a fantastic place to raise a family or for a single to live in, as it is takes under an hour to get to Melbourne’s CBD. There are also great schools and shops.”
The median house price is $391,250 for houses and $326,000 for units.
5. Graceville, QLD.
“This suburb is great for families with children and students. You will be eager to make use of the spacious homes with their own backyard and a serene atmosphere to indulge in,” Edge said.
“It has a 0.9 per cent vacancy rate and a 23 per cent 3-year forecasted growth rate. It's a great choice for high growth in the long term”.
The median price for a house is $1,050,000, there are no unit prices available.
6. Semaphore, SA.
“It's one of the best suburbs to invest in Adelaide for 2021, if you're looking for a good all-rounder that is fairly affordable, but still boasts healthy growth rates and rental yields,” Edge said.
“Its 5-year compound growth rate is 7.1 per cent for houses.”
The median house price is $730,000 for houses and $325,000 for units.