Lifestyle locations in our cities and regional areas will see strong buyer demand in 2021, as Australians continue to revaluate their lifestyles after a tumultuous year.
Outer suburbs and regional centres offering a better lifestyle at a more affordable price were front and centre in buyers’ minds this year, as the rise of remote working made the dream of moving further afield a reality.
“We have seen the acceleration of the dream,” said buyers’ agent Rich Harvey, chief executive of Propertybuyer. “[This year] has created the ideal opportunity for people to buy in the city fringe and more heavily populated regional lifestyle areas.”
Cities and regional centres within an hour or two of the capitals will continue to see strong growth, Mr Harvey said.
“We’ve seen dramatic demand for places in the Central Coast and Newcastle from Sydney buyers,” he added.
Matt Lahood, chief executive of The Agency, said both regions, as well as Bowral and Wollongong, would continue to see strong demand in 2021.
“In Newcastle, our team is doing record numbers and they just can’t get enough stock to sell … 70 per cent plus of that interest is from Sydney.
Of the four regions it’s the Central Coast seeing the strongest demand, he said, due to its wide array of price points. He added the new Northconnex tunnel, which shaves about 15 minutes off the trip to the Sydney CBD, would likely increase the area’s appeal.
To the north of the state, areas like Lennox Head and Ballina could see strong interest as people priced out of popular Byron Bay look elsewhere, Mr Harvey said
“They’ll get the ripple effects of the growth,” he said.
Domain senior research analyst Nicola Powell said housing affordability constraints in major cities had seen the shift to regional Australia start to gain momentum in 2015 but COVID had seen it explode.
“Affordability and remote working accelerated that trend, particularly for residents in Sydney and Melbourne, but Brisbane is the city that defies that,” she said, noting net internal migration showed it had gained more people from the rest of the state throughout the pandemic.
Brisbane is also seeing strong interest from buyers in the southern states, Mr Lahood said.
While the Gold Coast saw a strong rebound, he noted agents also expected Logan City — situated between Brisbane and the Gold Coast — to do well, with property prices up about 8 per cent over the year to September. Ipswich, to Brisbane’s south-west, was also poised for growth.
Dr Powell said areas that offered a good lifestyle and affordability would do well, given the strong rise in first-home buyers. Developing areas would also benefit, given the recent spike in loan commitments for the construction of new dwellings.
She added strong regional price growth would likely be limited to areas with good connectivity to the major cities, infrastructure and employment opportunities.
Further north, Airlie Beach and Cannonvale, in the Whitsunday region, could see interest pick up, Mr Harvey said, as they were attractive lifestyle areas for those who could work remotely.
In Western Australia, he expected Geraldton, about 420 kilometres north of Perth, and Busselton, about 200 kilometres to the south, to see decent growth, noting both had airports. His pick in Perth was the coastal suburb of Scarborough.
In Victoria, buyers would continue to flock to the Mornington Peninsula, Mr Lahood said, with the coastal communities of Lorne and Anglesea also seeing growing interest.
“They have great infrastructure and they’re 90 minutes from the CBD, allowing people to commute should they need to get back,” he said.
In Melbourne he expected St Kilda and Elwood to do well, noting people had fallen back in love with the classic beachside suburbs, with agents also reporting strong demand in the affluent bayside suburb of Beaumaris.
Experts also expect areas such as Geelong, Bendigo and Ballarat to continue to draw buyers from Melbourne.
“Large parts of regional Australia will be outright star performers in 2021,” said Simon Pressley, head of research at Propertyology.
Unlike most capital cities, bar Canberra, many regions had stronger economies today than pre-COVID, he said.
Mr Pressley expected Bendigo and Warrnambool in Victoria, Orange, Dubbo, Ballina and Kingscliff in NSW, Burnie in Tasmania, Noosa and Yeppoon in Queensland, and Busselton in Western Australia to be among many strong performers.
Across the capital cities, he expected detached houses in Canberra, Hobart and Perth to do best.
Dr Powell said the top-performing capitals would be Perth, Adelaide and Canberra, the latter two of which were slow and steady performers when it came to price growth. Meanwhile, Perth was poised for a rebound after several years of underperforming.
Mr Havey added 2021 could see buyers start to gravitate back towards apartment markets in both the inner city and fringe locations to take advantage of softer prices. He also expected to see investors come out of the woodwork, once rents started to rise again.
Article Source: www.domain.com.au
Little movement on HTW residential property clock in April
Herron Todd White have released their April property clock, and there has been little movement in the residential sector.
Broome and Canberra were the only locations to change their position on the clock in terms of residential housing values, with both regions moving to ‘rising market’.
There were also few changes to the property clock for the residential unit market last month, with the biggest shift being Canberra moving to a declining market.
oowoomba units shifted to ‘start of recovery’ and Emerald is now classified as a ‘rising market’.
The residential property clock
Top of the clock:
Houses – Albury, Bathurst, Burnie/Devonport, Dubbo, Launceston, and Tamworth’s housing values all remain at the peak of the market.
Units – The best-performing unit markets include five of the same locations that featured at the top for houses: Albury, Bathurst, Burnie/Devonport, Launceston, and Tamworth.
Starting to decline
Houses – Wodonga
Units – Wodonga
Canberra’s unit market was the only area classified as in decline.
Approaching bottom of the market
Bottom of the market
Houses – Albany, Geraldton, and Kalgoorlie remain at the bottom of the market.
Units – Albany, Geraldton, and Kalgoorlie all make another appearance for units, along with Sydney and the Whitsunday region.
Start of recovery
Houses – Alice Springs, Bundaberg, and Darwin’s housing markets were all classified as being at the start of their recovery.
Units – Alice Springs, Brisbane, Bundaberg, Cairns, Canberra, Darwin, Emerald, Ipswich, Melbourne, Perth, South West WA, Toowoomba, and Townsville’s unit markets are also starting to recover.
Houses – Once again, it’s a crowded field on the rising market end of the clock, with Adelaide, Adelaide Hills, Ballina/Byron Bay, Barossa Valley, Brisbane, Broome, Cairns, Canberra, Central Coast, Coffs Harbour, Emerald, Gladstone, Gold Coast, Hervey Bay, Hobart, Illawarra, Ipswich, Karratha, Lismore, Mackay, Melbourne, Mildura, Mount Gambier, Newcastle, Perth, Port Hedland, Rockhampton, Shepparton, South West WA, Southern Highlands, Sunshine Coast, Sydney, Toowoomba, Townsville, and Whitsunday housing markets all on the rise.
Units – Adelaide, Adelaide Hills, Ballina/Byron Bay, Barossa Valley, Broome, Coffs Harbour, Dubbo, Gladstone, Gold Coast, Hervey Bay, Hobart, Illawarra, Karratha, Lismore, Mackay, Mildura, Mt Gambier, Newcastle, Port Hedland, Rockhampton, Shepparton, Southern Highlands, and the Sunshine Coast’s unit markets were all classified as rising.
Approaching peak of the market
Geelong was the only location classed as approaching the peak of the market for both houses and units.
Article Source: eliteagent.com
Is now a good time to buy property? Nearly 40 per cent of people think so, despite record house prices
House prices are at historical highs, records tumble every weekend at real estates auctions around the country and price growth rates continue to rise.
Despite those facts, nearly 40 per cent of Australians believe that now is a good time to buy.
According to new research from the financial comparison website Canstar, 38 per cent of those surveyed believed that it was a good idea to buy property now.
Canstar group executive financial services Steve Mickenbecker said that of those who thought it was a good time to buy, many were expecting prices to continue to rise. They also cited low interest rates as another reason.
“Either way there will be no shortage of buyers as sellers come out,” he said.
“Today the market is overwhelmed with buyers, auctions are intensely competitive, open houses crowded, and unconditional contracts are becoming the norm. Low housing supply on the market has intensified the fear of missing out. We are in a low interest rate frenzy.”
Of the 39 per cent who said they didn’t think now was a good time to buy, 45 per cent said the market was currently in a bubble, inflated or under-supplied.
Mr Mickenbecker said the almost-equal number of respondents who said it was a good time and a bad time to buy indicated the rapid growth was slowing down.
“The Reserve Bank and APRA are likely to welcome a leading indicator of a return to balance, tempering growth and discouraging bank excess, but at the same time strong enough to support sustainable economic growth that won’t implode,” he said.
“The Reserve Bank doesn’t want to hurt the broader economy with higher interest rates and currency and is hoping for healthy property prices to support spending, but at a slower pace, so first-home buyers can afford to stay in the race.”
The latest quarterly Domain House Price Report, released last week, found price growth had hit a 32-year high in March.
Sydney’s median house price for the last quarter was $1.3 million, and Melbourne’s reached a record high of $975,000. Hobart’s was just above $600,000, and prices in Canberra grew 20 per cent in a year to a median of $930,000.
Brisbane and Adelaide’s median house prices were at their highest ever, and Perth’s was at its highest since December 2015. Darwin’s median house price was at its highest since December 2017.
CoreLogic figures released this week showed the rapid growth had started to slow, but prices continued to grow in every capital city and regional market in April.
“First-home buyers have been anything but deterred from the market and have leapt in with gusto, encouraged by government incentives,” Mr Mickenbecker said. “They are increasingly competing with investors able to make unconditional offers and blow them away at auctions, and would clearly welcome a more stable market.
“The market continues unabated for now, but a slow and steady future is hopefully ahead of us.”
Article Source: www.domain.com.au
CoreLogic: Home values continue to rise but the pace of growth loses steam in April
Australian housing values lifted by 1.8% in April according to CoreLogic’s national home value index, with the monthly pace of capital gains easing from a 32-year high in March (2.8%). Although growth conditions have slowed, housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.
CoreLogic’s research director, Tim Lawless, says the pace of capital gains could slow further over the coming months as inventory levels rise and affordability constraints dampen housing demand.
“The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth. With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs.”
There is already some evidence of fewer first time buyers in the market, with the Australian Bureau of Statistics reporting a -4.0% fall in the value of first home buyer home loans through February, the first drop since May last year.
Despite the slowdown, positive housing market conditions remain geographically broad-based with every capital city and ‘rest-of-state’ region continuing to record a lift in dwelling values over the month. Darwin (2.7%) and Sydney (2.4%) recorded the largest month-on-month rise in dwelling values, while Perth values recorded the lowest rate of growth amongst the capital cities at 0.8%.
The four smallest capital cities recorded double digit annual growth (Adelaide 10.3%, Hobart 13.8%, Darwin 15.3% and Canberra 14.2%), reflecting a smaller COVID-related disruption and an earlier start to the growth phase last year. Melbourne is recording the lowest level of annual growth (2.2%) due to a larger downturn, attributable to the extended lockdown period last year.
The broad trend of houses outperforming the unit sector continued through April as higher density styles of housing experienced less demand amidst elevated supply across some inner city precincts. At the combined capital city level house values (8.6%) have risen at double the pace of unit values (4.3%) over the first four months of the year.
“A preference shift away from higher density housing during a global pandemic is understandable, however a rise in flexible working arrangements also seems to be supporting greater demand for houses around the outer-fringes of capital cities. Relatively weak investor activity, compounded by a supply overhang in some high-rise precincts, is also dampening price growth in unit markets,” Mr Lawless said.
Article Source: www.corelogic.com.au
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