Yahoo Finance Revealed: The 8 best property hotspots of 2020
The Australian property market had its ups and downs in 2020.
While the initial shock of Covid-19 led to a 2.1 per cent drop in national property values between April and September, the last two months saw property prices bounce back, bringing values 1.1 per cent higher over the year to November.
Aussies also started showing their preference for “lifestyle” markets rather than capital city markets, and regional areas saw a lot of buying activity, CoreLogic data shows.
But luxury markets have been resilient, according to CoreLogic’s 2020 Best of the Best Report.
The highest median value suburb for houses was Darling Point, at $7,063,773, while for units it was Point Piper at $2,281,435.
The suburb with the greatest 12-month change in housing values was Sunshine Beach in Queensland, with prices surging 27.6 per cent, while the best suburb for rents was Port Elliot in South Australia, wirth rents climbing 23.7 per cent in the last 12 months.
CoreLogic’s head of research Australia, Eliza Owen, said surprisingly, some suburbs more impacted by the pandemic were represented in the report as having the highest sales turnover value in the year to September.
“In the suburb of Melbourne, for example, unit values declined -3.4 per cent between the onset of the pandemic in March, and the end of September. The total value of sales is down -3.9 per cent in the year to September 2020 compared with the year to 2019.
“Yet the suburb of Melbourne has gone from having the sixth highest total sales value in 2019, to claim the number one spot in 2020.”
Here are the best performers in NSW
While luxury markets performed well, Owen said they were still affected by the pandemic.
“Indeed the high end of the Sydney market is generally more volatile to changes in economic conditions,” she said.
“However, this volatility also tends to see a rapid recovery in the wake of lower mortgage rates and an improvement in consumer sentiment.”
Here are the best performers in VIC
Here are the best performers in QLD
Here are the best performers in SA
Here are the best performers in WA
Here are the best performers in TAS
Here are the best performers in NT
Here are the best performers in ACT
What’s the property outlook for 2021?
There’s good news and bad news in 2021, according to CoreLogic’s Owen.
The good news is record-low interest rates, combined with the nation’s economic recovery, will continue to propel property prices, Owen said. Property investment is also likely to increase in smaller capital cities like Perth, where rent values rose a whopping 8.2 per cent in the year to November.
However, the inner-city Melbourne is still facing challenges, with supply outweighing demand.
“For example, modelled sales volumes for November estimate 4,301 transactions took place across Melbourne, compared with 8,054 new listings added to the market in the same period,” Owen said.
“This means there were around 0.5 sales for each new listing added. This is very different from conditions across other capital cities, where the November sales to new listings ratio averaged 1.2 sales for each new listing added.”
Institutional investors will also continue to shape the profile of property buyers, particularly as HomeBuilder is extended at a reduced rate into Q1 of 2021, Owen said.
“Overall, the housing market outlook for 2021 is positive, given highly accommodative monetary and fiscal policy, signs of an economic recovery and many first home buyer incentives remaining in place through to early next year,” she said.
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