The year is coming to an end, and we are wrapping up one of the biggest years for the property market ever.
Now, Domain has released its end of year wrap for 2021 outlining exactly where buyers were looking and what they were looking for.
The report also revealed the suburbs’ overseas investors are looking to the most.
The report found that capital city house prices peaked at $1 million, recording the fastest annual rate of growth on record at 21.9 per cent.
However, relief is expected for buyers in 2022 as the house price growth rate continues to cool.
“The year is closing in a different position to the start, sellers are re-engaging with the market, increasing supply which in turn offer greater choices for buyers,” Domain chief of research and economics, Nicola Powell, said.
“New listings are coming to market quicker than they are being sold. While it remains a sellers’ market, slowly market dynamics are changing to provide more favourable conditions for buyers”.
This is everything you need to know about the property market this year.
Most sought after suburbs
A record number of properties were sold across Australia, the report said, consisting of 446,800 houses and 144,500 units.
These eight suburbs were the most sought after from each state, according to the report:
Fannie Bay, NT
Quickest selling suburbs
Houses sold in record time in 2021, in fact it was the quickest since 2008. Units also sold in record time, marking their quickest pace since 2014.
Here are the top suburbs in each state with the quickest sales:
Goodwood, Hobart, TAS, 8 days
Killarney Heights, Sydney, NSW, 10 days
Diamond Valley, Sunshine Coast, QLD, 10 days
Sassafras, Melbourne, VIC, 10 days
Regency Park, Adelaide, SA, 11 days
Holder, Canberra, ACT, 14 days
Anula, Darwin, NT, 72 days
Coolbinia, Perth, WA, 22 days
What Aussies were looking for in a home
The report found the most sought after houses were four bedrooms with two bathrooms and two car spaces.
The most sought after apartments were two bedrooms with one bathroom and a car space.
Keyword searches shone a new light on specific attributes home hunters were looking for.
Keyword searches for ‘study’, ‘garage’, ‘balcony’, ‘courtyard’ and ‘garden’ increased in 2021 and lifestyle additions and location became more of a focus, with a hike in searches for ‘pool’, ‘beach’ and ‘water’.
Working from home, as well as affordability constraints, also saw a rise in regional living keyword searches with dramatic rises in ‘rural’, ‘acreage’ and ‘farm’.
“Analysing keyword searches helps us distinguish between changing trends or fleeting moments of desirability,” Powell said.
“The pandemic has forced us all to use our homes differently as we spent more time than ever in them and perhaps forever made a mark on our purchasing decisions, property wish lists and architectural trends”.
These were the most searched terms in 2021:
Suburbs in demand from overseas buyers
As borders start to reopen the report outlines the most searched for suburbs that overseas buyers have been looking for.
“Investors will continue to be a growing market segment, unless APRA puts on the brakes,” Powell said.
“It remains a landlords’ market across the most major cities and into regional Australia. Investors have had the benefit of rising rents and equity growth, [and] with prices set to continue to rise (albeit at a slower pace than 2021), investors will continue to chase it.”
These are the most sought after suburbs for overseas investors:
South Yarra, VIC
Brisbane City, QLD
“Population growth is likely to be a government focus in 2022 and beyond to sustain higher economic growth and build Australia’s skilled workforce, achieved by bolstering the migration intake,” Powell said.
“Job ads are at the highest in 13 years, with severe shortages in certain areas as a result of closed international borders. The return of overseas migrants, international students and particularly skilled highly-paid migrants, will add to demand for housing.”