House prices are up 30 percent in regional cities where the sea is changing, as Australians flee the big cities
House prices are rising 30 percent a year in picturesque regional areas and desirable suburbs as Australians flee crippling lockdowns in major cities.
The sea change and tree change phenomenon is now so entrenched that regional areas made up seven of the top 10 real estate markets in August, CoreLogic data showed.
Younger Australians looking to move out of the big city for a more affordable beach or rural area face increased competition as more people can work from home.
House prices are rising 30 percent a year in picturesque regional areas and desirable suburbs as Australians flee crippling lockdowns in major cities. The Richmond-Tweed region of northern NSW has seen an annual increase of 29.5 percent (pictured is Byron Bay in August)
Real estate markets with the fastest annual growth
1. Sydney Northern Beaches: Up 33.8 percent to $2,218,510
2. Richmond-Tweed, Northern NSW: Up 29.5 Percent to $808,348
3. Central Coast, NSW: Up 29.4 percent to $866,690
4. Baulkham Hills, Hawkesbury in Sydney’s Northwest: Up 28.5% to $1,672,218
5. Southern Highlands, Shoalhaven: Up 28.3 percent to $795,339
6. Mornington Peninsula, Victoria: Up 28.3% to $854,275
7. Sunshine Coast, Queensland: Up 27.6 Percent to $819,831
8. Coffs Harbour, Grafton in northern NSW: up 27.6 percent to $621,146
9. Tasmania South East: Up 26.5% to $523,699
10. Launceston and Northeast Tasmania: Up 26.3 Percent to $448,715
Source: CoreLogic, CommSec data for August 2021 for houses and units combined
With Sydney and Melbourne on lockdown, property buyers are increasingly looking to live in a nicer coastal suburb or a regional area two hours from one of Australia’s largest cities.
CommSec senior economist Ryan Felsman said real estate buyers were especially interested in homes near beaches or ranches.
“During the pandemic, there was certainly a strong demand from home buyers for detached houses in lifestyle regions,” he told the Daily Mail Australia.
‘Population movements have been significant from capitals to the regions, especially from Sydney and Melbourne amid lockdowns and work-from-home schemes.’
While the desirable beachfront areas in Sydney have some of Australia’s strongest annual price increases, coastal areas in northern New South Wales and southern Queensland are becoming even more out of reach for young people.
In August, real estate values across Australia rose 18.4 percent to a median of $666,514 – the fastest annual growth rate since July 1989.
But on Sydney’s northern beaches, house prices have risen a staggering 33.8 percent over the past year to a particularly prohibitive $2.2 million.
The Richmond-Tweed region of northern New South Wales, which includes Byron Bay and Ballina, experienced an annual price increase of 29.5 percent, bringing the average value to $809,348.
The Central Coast north of Sydney saw an increase of 29.4 percent, bringing average home prices to $866,690.
South Queensland is also getting even more unaffordable with real estate values on the Sunshine Coast rising 27.6 percent over the past year to $819,831.
In August, real estate values across Australia rose 18.4 percent to a median $666,514 – the fastest annual growth since July 1989. But on Sydney’s northern beaches, house prices have risen a staggering 33.8 percent over the past year to a particularly priceless $2.2 million (pictured is Manly during the August close)
On the other side of Brisbane, Gold Coast real estate values are up 24.9 percent to $709.992.
Victoria was also not left out with prices in the Mornington Peninsula, southeast of Melbourne, rising 28.3 percent to $854,275.
Tasmania also had two places in the top ten for annual growth, with prices in the southeast of the state rising 26.5 percent to $523,699.
Launceston and northeastern Tasmania were up 26.3 percent, bringing median prices to $448,715.
Mr Felsman said Tasmania’s status as a largely Covid-free area has made the island nation a desirable place to move to.
“Covid-free regions in Tasmania have performed strongly,” he said.
Victoria was also not left out with prices on the Mornington Peninsula, southeast of Melbourne, which rose 28.3 percent to $854,275 (pictured is a much more expensive house in Sorrento)
Despite an exodus from Sydney to the regions, house prices in Australia’s largest city have continued to rise as more people in the city moved to larger homes, with median values rising 26 percent in the past year.
Unlike the 2020 lockdowns, property prices will continue to rise in 2021 as either more people move to the regions or home sellers in Sydney and Melbourne delay putting their homes on the market.
Eliza Owen, CoreLogic’s head of research in Australia, said amid the lockdowns, property prices rose in suburbs where a higher proportion of residents were able to work from home.
South Queensland is also getting even more unaffordable with Sunshine Coast property values up 27.6 percent over the past year to $819,831 (pictured is a very luxurious waterfront home in Noosa)
These areas also have much lower Covid infection rates than parts of western and southwestern Sydney, where cases are on the rise.
With the Australian economy set to contract in the September quarter due to lockdowns, Everybody’s Home spokeswoman Kate Colvin said federal government programs were needed for social housing and rental assistance.
“We know that in the coming months more Australians will continue to struggle financially, but there will be no relief when it comes to housing costs,” she said.
“If prices and rents don’t stop rising during a recession, it’s unlikely they ever will, unless there’s significant federal intervention.”
Australia’s best-performing real estate markets in August 2021
1. Tasmania West and Northwest: Up 3.5 percent to $379,261
2. Riverina Southern New South Wales: Up 2.7 Percent to $340,982
3. Tasmanian Southeast: Up 2.7 percent to $523,699
4. Launceston and Northeast Tasmania: Up 2.5 Percent to $448,715
5. Brisbane west: up 2.5 percent to $869,307
6. Southern Highlands, Shoalhaven NSW: Up 2.4 percent to $795,339
7. Coffs Harbour, Grafton, Northern NSW: Up 2.4 percent to $621,146
8. Baulkham Hills, Hawkesbury, Northwest Sydney: 2.4 percent up to $1,672,218
9. Brisbane North: Up 2.3 percent to $726,167
10. Hunter Valley NSW Excluding Newcastle: $571,199 Up
11. Gold Coast, Queensland: Up 2.3 percent to $709.992
12. Adelaide Central and Hills: Up 2.3 percent to $694,106
13. Central Coast, NSW: Up 2.3 percent to $866,690
14. Illawarra, NSW: Up 2.3 Percent to $871,871
15. Hobart, Tasmania: Up 2.3 Percent to $639,219
16. Sutherland, South Sydney: Up 2.2 percent to $1,414,219
17. Moreton Bay, South Brisbane: Up 2.2 percent to $622,175
18. Downtown Brisbane: Up 2.2 percent to $690,701
19. Australian Capital Territory: Up 2.2 percent to $816,644
20. Newcastle and Lake Macquarie: Up 2.1 percent to $750,494
Source: CoreLogic, CommSec data looking at monthly property increases in August 2021 – which includes houses and apartments together – based on the Australian Bureau of Statistics SA4 limits