When coronavirus broke out across Australia, doomsday reports tipped the property market could fall as far as 30% across the country. Fortunately, that wasn’t the case. Here’s how to find out how your suburb actually fared.
A realestate.com.au analysis shows that property prices actually grew in most Australian suburbs throughout 2020.
Yep, that’s right.
Despite prolonged lockdowns in some parts of the country (especially Melbourne), most suburbs experienced year-on-year growth in 2020.
So which suburbs did best?
It should come as no surprise that lifestyle suburbs and coastal areas (such as Pearl Beach in NSW, pictured) ranked consistently high, given that many people had a taste of working from home and might not ever have to return to their inner-city offices.
But houses in plenty of trendy inner-city suburbs did well too, such as St Lucia in Brisbane (up 35%) and Brunswick East in Melbourne (up 20%).
Below are the suburbs that experienced the largest percentage increase in house prices in each state and territory:
NSW: Pearl Beach (46%), North Avoca (44%), Glenorie (38%), Woollahra (35%), Clovelly (34%).
VIC: Portsea (34%), Tyabb (28%), South Melbourne (23%), Collingwood (22%), Brunswick East (20%).
QLD: St Lucia (35%), Virginia (24%), Yeronga (20%), Woodford (19%), Kilcoy (19%).
WA: Kelmscott (39%), Coodanup (30%), Medina (22%), Madora Bay (20%), Mosman Park (20%).
SA: Hove (36%), Port Noarlunga South (27%), Glenelg East (22%), Blackwood (22%), Craigburn Farm (22%).
TAS: Dodges Ferry (26%), New Norfolk (25%), Berriedale (18%), Bridgewater (17%), Rokeby (17%).
ACT: Ainslie (34%), Lyneham (23%), O’Connor (21%), Palmerston (20%), Garran (20%).
NT: Berriham (12%), Zuccoli (8%), Durack (8%), Muirhead (6%), Leanyer (2%).
So why didn’t property prices take a dive?
Director of economic research at REA Cameron Kusher says there are several reasons why property prices didn’t fall dramatically, but the key reason is the unprecedented amount of stimulus that was pumped into the economy.
“HomeBuilder has stimulated new housing, JobKeeper has kept many Australians employed and the relaxation of bankruptcy laws along with lenders offering mortgage holidays ensured we didn’t see a rise in forced sales,” Mr Kusher says.
Another key reason is record-low borrowing costs.
Indeed, the RBA cut the official cash rate three times to 0.1% in 2020, and as such interest rates are now at record low levels.
“Historic low borrowing costs at a time when people are spending less has seen more demand flow into the housing market, driving up sales and supporting price levels,” adds Mr Kusher.
How to make property more affordable
As mentioned above, interest rates are at record low levels and there are still a number of government stimulus packages available to help make your next property purchase more affordable.
If you’re still on the hunt for your home loans, we can run you through some of the information. It’s as easy as clicking here to fill in your information and our dedicated brokers will reach out to you at your convenience!