Despite all the pandemic-induced drama, 2020 turned out to be a pretty stable year for property prices in Australia. Most experts believe that this new year will shape up to be stellar for real estate. Property Investment Professionals of Australia (PIPA) chairman reinforced that 2021 will be a much better year than 2020, especially for the residential market, as capital cities are expected to see a higher rate of value increases.
Furthermore, historically low interest rate and pent up transactional energy are likely to provide a boost to the property market early in 2021, as this will continue to push the prices on established residential properties up.
If Australia succeeds to keep COVID contained in 2021, the property market will look to be a promising year, especially on the back of record low interest rates and positive sentiments, Property investors Council of Australia’s chairman Ben Kingsley.
Here are where the experts are highly recommending to invest in 2021:
Regional and lifestyle property markets have shown some very strong results. Demand has been outstripping supply by some margin and this has resulted in short marketing periods, properties sold prior to auction as well as some very strong auction results. Locations such as the Sunshine Coast and Adelaide Hills are stands outs with the advantages of rural lifestyle and good value attracting buyers.
CoreLogic’s “Best of the Best” report revealed Sunshine Beach, a suburb of Noosa in Queensland, had the best performing house prices over the past 12 months.
CoreLogic’s Head of Research Australia, Eliza Owen said “Sunshine Beach on the Sunshine Coast has seen the highest annual capital growth in houses nationally, compared with 2019 when St Kilda in Melbourne saw the highest housing growth.”
Areas such as Geelong, Ballarat and Bendigo are likely hotspots due to affordability and lifestyle factors. Despite the ongoing pandemic, regional Victoria house prices increased by 5.5 per cent. CoreLogic research director, Tim Lawless said the hottest markets were only a few hours drive from major capital cities, such as Geelong, Ballarat, Sunshine Coast, Newcastle, Wollongong and Daylesford. “They are leading the pack in terms of the strongest growth”.
“People can have the best of both worlds and live in a marketplace with lifestyle benefits and lower prices, as well commute back to big cities if they need to,” Mr Lawless said.
Greater Byron Region
As mentioned in our last email, the Greater Byron Region is set to boom in 2021. Increases in buyer’s demand were across the Greater Byron Region in locations such as East Ballina (185%), Lennox Head (150%) and Bangalow (145%).