When Covid-19 first broke out, many of the experts and bank analysts expected a significant drop in the Australian property market. Fortunately, this wasn’t the case for a number of key reasons including; Australian banks and lenders allowing borrowers to pause or halt their repayments for a period of time, allowing Australians to withdraw $10,000 from their superannuation for 2 financial years, the RBA slashing the cash rate to a record low level of 0.1%, and of course all of the support payments announced by the Australian Government such as JobKeeper.
Despite the negative early expectations, the data released by realestate.com.au shows that most Australian suburbs actually saw positive growth through 2020. You can check out how your suburb performed on their website here.
As will come as no surprise to most, many of the regional areas and coastal towns performed very well as people spent more time working from home, which also meant that many smaller apartments in the CBDs remained quite weak. Many expect that they will continue to work from home even as the world begins to ‘re-open’ and we move beyond Covid.
Here are the suburbs that performed the best across each of the states and territories:
- WA: Kelmscott (39%), Coodanup (30%), Medina (22%), Madora Bay (20%), Mosman Park (20%).
- 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%).
- 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%).
With the RBA revealing in their latest report that they expect Australian property prices to soar by 30% over the next 3 years, as long as interest rates remain at these record low levels, we expect demand will remain strong. They have also revealed that they have no intention of increasing interest rates until inflation is within their target range of 2 – 3%.
If you would like to explore your property options, or even what you could save on your existing mortgages, please feel free to reach out to our team at Loansuite.
LoanSuite Pty Ltd is your lending partner for all of your home loan, investment property, business and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.
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