Home Insights The suburbs where buyers splashed the most cash in 2021

The suburbs where buyers splashed the most cash in 2021

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2021 was, in many respects, a record year for residential real estate.

The extraordinary price increase was significant, but Other important records have been brokenAnd many big themes emerged throughout the year.

The combination of record demand, the historically low supply of real estate for sale, and record low interest rates has led to prices rising at the fastest pace in over 30 years. This surge was also supported by a widespread reassessment of housing needs.

Recent PropTrack analysis Shows where prices rose the most across Australia and where the market was most competitive in 2021 based on the number of days in the market.

Looking back on that year, it’s clear that the real driving force behind the surge in demand was the ongoing reassessment of lifestyle wants and housing needs.

Interest in lifestyle properties is skyrocketing, and many are looking for larger homes and more space in the suburbs and rural areas. The same trend is driving great demand for beachside real estate.

Due to pandemics, telecommuting trends, and ongoing restrictions, many continued to reassess their living conditions. The blockade experience has made life in the city center less attractive to some, but for others, all the time spent at home probably goes to more space, such as the garden or home office. Driven the demand for.

Despite the many blockades that hampered both buyers and sellers Sales volume surged from 2020 to 2021, and provisional sales of residential real estate increased by 40.1%. Than 2020.

Lower mortgage service costs have allowed many to borrow larger mortgages, and lower interest rates have been capitalized to higher home prices very quickly. As a result, not only has sales surged, but Total sales..

Measured in the regions with the highest total sales in 2021, the trend towards lifestyles, larger homes, properties closer to the waterfront and beaches is clear. This is evident only by looking at rising prices, with home prices nationwide rising 27% by 2021, compared to a 13% rise in unit prices.

In the suburbs of Mosman, Sydney, home sales and unit sales surged 28% and 11%, respectively, compared to 2020, and home prices rose sharply, bringing the total of these sales to more than 600 transactions. Over $ 1.83 billion. ..

Buyers spent more than $ 1.8 billion on Mosman’s real estate in 2021.

At Point Cook, home sales in 2021 increased by 60% from 2020, and unit sales increased by 26% by 2021.

Manly’s sales on Northern Beach in Sydney aren’t in the top ten, but in 2021 they surged 42% compared to 2020, with more than 700 transactions and Manly’s total sales of 800 million. Exceeded the dollar.

Long-term blockades and border closures have led to a surge in demand for coastal assets. The seaside suburbs outside the capital were outperformed until 2021.

The regional housing market surpassed the capital until 2021, and the value of regional housing increased at an annual rate of 30%. This is evidence of a combination of record low interest rates, a boom in telecommuting, mobility trends, and a shortage of real estate for sale.

Metropolitan areas are still the most popular homes, and demand for housing in the city center remains high, but pandemics have caused a shift in taste.

Real estate sales surged in parts of Australia during the pandemic as people sought lifestyle changes and more affordable options. This was especially noticeable in areas where commuting or airports were well maintained, where metropolitan amenities were plentiful and many could enjoy the strengths of both worlds.

Coastal locations of sea change are the most popular, but inland tree change areas such as Borals, Oranges and Dowels have also proven to be popular.

Boral and Dowel only missed the top 10 slightly when measured in the regions with the highest total sales in 2021.

The strength of the mining sector and its relatively affordable prices have supported demand in many inland regions. Meanwhile, in Southern Highlands, a picturesque lifestyle location with natural beauty and comfort, remote work has increased housing options, resulting in significant increases in demand and prices.

Strong sales terms in southeastern Queensland

The pandemic-induced surge in the sunshine housing market was supported by more affordable prices and interstate movements, resulting in a significant increase in sales volume as well as a significant price increase in 2021.

In the suburbs of the Gold Coast, where there are many high-rise condominiums, total sales in 2021 surged compared to 2020, driven by a large number of units sold.

The Gold and Sunshine Coast occupies seven of the top ten suburbs in Australia’s region with the highest total sales in 2021. It also accounts for nine suburbs with the highest total sales in 2021.

This data highlights the growing demand for real estate in southeastern Queensland, supported by population growth, telecommuting capacity, and demand for lifestyle amenities.

Queensland is relatively unblocked compared to both Sydney and Melbourne, and despite border restrictions, it has a higher level of interstate movement with the added benefit of relatively affordable prices. increase.

Aerial image of Surfers Paradise

Buyers made a splash on the Gold Coast in 2021 and demand for beachside real estate surged.

The Gold Coast is clearly the best destination, Continues to be popular with first-time homebuyers, investors, homeowners, and interstate highway movers.. In fact, during the previous census period, the destinations for the top three millennial regions were the Gold Coast, Newcastle, and the Sunshine Coast.

Investor interest continued to rise until 2021, with ABS investor lending rising for the 14th consecutive month in December, reaching a record $ 10.34 billion, up 73.9% year-on-year. By the end of the year, the percentage of investor inquiries to real estate agents at realestate.com.au was the highest in more than three years.

According to PropTrack’s quarterly rental report, rents on the Sunshine Coast and Gold Coast increased 19% and 17% year-on-year in 2021, respectively... The rental market is expected to remain tight, especially as borders reopen.

In southeastern Queensland, after years of gradual growth, prices are still rising rapidly, supported by better affordability and strong demand from people traveling on interstate highways. However, the pace of price increases seen in 2021 is set moderately in 2022.

2022 outlook

Due to the milder activity of buyers, 2022 started later than 2021. The provisional weekly sales volume for January decreased by 10% from January last year, but increased by 15% from January 2020.

Persistently strong levels of buyer activity can boost sales and put upward pressure on prices over the next few months. The more you go through the seasonal calm, the better you can read the situation.

However, as additional inventory hits the market, buyer demand is expected to ease further.

Future sellers respond to strong price increases, Hopefully Years without blockades will allow vendors to more comfortably list their properties. With more supply and fewer competing bidders, the time to market may be longer.

As vendors become more motivated to list properties, they have more choices and improve the imbalance between supply and demand for properties for sale. Given the benefits of lower mortgage rates being converted to higher home prices, price increases should ease this year.

But after all, 2022 should still be a strong year for housing. Mortgage rates can rise, but have historically remained very low.

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