Australia’s best real estate performance in 2021

CoreLogic Best of the Best 2021 Report revealed Australia’s best performing residential housing market in 2021 through in-depth suburban-level analysis of Australia’s best and worst performers, including bestsellers, highest medians and rates strongest growth factors.

According to Eliza Owen, head of research at CoreLogic, the estimated value of Australian residential real estate has risen from $ 7.2 trillion at the end of November 2020 to a new high of $ 9.4 trillion in just 12 months.

“The strong performance of the housing market during the year was driven by multiple factors, including low interest rates, fiscal and institutional support to households, high household savings and relatively low levels of inventory. announced, “she said.

In addition, nationwide sales volumes jumped 22.2 percent in the 12 months to November, the largest increase on record since 1989, to reach about 614,635 units, the highest level in almost 18 years old.

“Housing turnover rates had also been relatively low for a few years before these factors boosted housing demand, which may also account for the high volume of sales over the past 12 months, which in November was 32. 6% higher than the decade’s annual average, ”Ms. Owen said.

Growth of regions and capitals

The value of single-family homes has climbed 24.6% in the past year, above the national unit value growth of 14.2%. This reoccurred in areas where home values ​​grew 25.2 percent faster than the capital cities combined at 21.3 percent.

Ms Owen attributed the disparity to a number of factors, such as extended shutdowns until 2021 and remote working practices.

For example, she cited “the peaceful coastal suburb of Yamba, in the Coffs Harbor-Grafton area of ​​New South Wales, [which] achieved the highest annual growth for suburban units across Australia, at 56.6 percent.

“Regional suburbs were represented in many of the top value growth charts, including Ocean Grove units in Geelong (up 41.7% year-on-year), Fraser Island units in Wide Bay (up 48.2 percent) and homes in Campbell Town, Tasmania (up 50.5 percent), ”she said.

In the four weeks leading up to December 5, 2021, an increase in vendor activity resulted in a huge increase in new listings, with approximately 51,000 new real estate listings added. That’s a far cry from the average number of new assignments over the past five years of 41,800.

The number of auctions held in the combined capitals also hit a record 4,251 in the week of November 28, only to be surpassed two weeks later when nearly 5,000 properties were put up for auction.

However, Ms Owen pointed to weakening growth trends despite the strong initial performance at the start of 2021, many of the factors that led to the recovery slowly fading in the second half of the year.

“The constraints of slightly tighter credit conditions, erosion of housing affordability and a higher level of listings added to the market are expected to result in lower growth rates in property values ​​in 2022,” a- she listed.

Ms. Owen stressed that “these forces are an accumulation of headwinds for the performance of the real estate market. Lower growth rates will likely coincide with a decrease in buying, where sales and listings activity will eventually move with price dynamics. “

Highlights of the National House

Median value of the highest house

Bellevue Hill (NSW) – $ 8,736,643

Median value of the lowest house

Kambalda East (WA) – $ 90,155

Highest 12-month change in median home value

St Andrews Beach (VIC) – 58.6 percent

Highest variation in house rents over 12 months

Bicheno (TAS) – 40.9 percent

Houses with the highest gross rental yield

West Kambalda (WA) – 14.7%

Highlights of National Unity

Highest median unit value

Point Piper (NSW) – $ 3,216,796

Lowest median unit value

Woree (QLD) – $ 158,846

Highest 12-month change in median unit value

Yamba (NSW) – 56.6 percent

Highest change in unit rents over 12 months

Narooma (NSW) – 33.7%

Units with the highest gross rental yield

Woree (QLD) – 10.7 percent

RELATED TERMS

Property

Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.

Australia’s best real estate performance in 2021



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Last updated: December 21, 2021

Posted: 22 December 2021