This time last year, none of us even knew what Covid-19 was. Remember that blissful existence? But even more surprising is that this time last year, national median house values were approximately 3.1% lower than they are now.
Despite all that 2020 grenade-launched at us, the Australian property market somehow managed not only to survive, but thrive.
Bolstered by lower interest rates, generous government incentives, and increasing demand, house prices in many Sydney suburbs continue to rise. Recent forecast reports by ANZ predict an 8.8% increase in the region’s house prices this year, particularly in suburbs outside of the CBD as more employees opt to work remotely. With that in mind, here are six suburbs likely to see the highest price growth this year.
The Northern Beaches has enjoyed a huge boom over the past twelve months as more people flee the city for a sea change. Offering a laid-back coastal lifestyle, young professionals have been heading over the bridge in search of a better work/life balance. In 2020, median rent prices in Narrabeen surged by over 25% from the previous year, with median house prices eclipsing the suburb’s 2017 peak of $2,300,000. Interest in the area only continues to grow for both first home buyers and investors alike.
Pre-covid, many Sydneysiders considered the Hawkesbury area too far removed from the hustle and bustle of the city. Now, its distance from the CBD is part of its allure as more employees opt to work from home. And who wouldn’t want home to be in a quant historic town beside the Hawkesbury river? Still within a reasonable commute of the city, Windsor is set to see continued growth, with realestate.com.au reporting a $40K jump in median house prices between November and December 2020 alone.
Bardwell Park represents the best of both worlds—tucked within Sydney’s St George area it boasts close proximity to both the inner west and the eastern suburbs, whilst still feeling suburban with a community feel. At the beginning of last year, median home values in Bardwell Park rose from $1.16 million to $1.35 million by December, with this upward trend predicted to continue into 2021.
For years locals have been the butt of jokes, but now people are starting to understand why no one ever leaves the Shire bubble. As Sydney’s only beach accessible by train, Cronulla offers a coastal lifestyle with easy access to the CBD. Throughout the pandemic, both rental prices and property values rose around 2% as demand increased. As more city-dwellers look to make a permanent sea change, prices are set to soar.
In October, a dilapidated 2-bed, 1-bath home in Mount Druitt sold for $1.38 million. It signified a turning point for one of Sydney’s most historically cheap suburbs. The western Sydney suburb is currently undergoing a major facelift, with $1.5 billion worth of infrastructure set to boost both the property and job market. Vacancy rates here have dropped by 1.4% to 0.9%, with interest in the area predicted to intensify this year.
Since being crowned by Time Out as one of the coolest cities in the world to live, this inner west multicultural hub continues to soar in popularity. Home to some of Sydney’s best eateries, art galleries, and farmer’s markets, property in Marrickville is becoming harder and harder to come by because no one wants to leave! Due to demand, rent prices increased by over 17% in the past 12 months, while median house prices increased by 9.19% to $1.5m, according to CoreLogic data.