Inner-ring suburbs are expected to outperform the outer suburbs in 2021 – provided the properties aren’t home units.
While regional areas proved popular last year, Metropole Property Strategists director Michael Yardney said houses in inner and middle-distance areas of Australia’s big cities were likely to see price surges this year.
‘Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs,’ he said.
‘The reason being, Covid-19 has adversely affected low-income earners to a greater extent than middle and high-income earners who are likely to recover their income back to pre-pandemic levels more quickly, while many have not been hit at all.’
Metropole Property Strategists director Michael Yardney said houses in inner and middle-distance areas of Australia’s big cities were likely to see price surges this year. Pictured is a house on the market at Forrestville on the Northern Beaches, 12km north of Sydney’s city centre
Mr Yardney said newer apartments near the central business district, however, would miss out on the boom.
‘High-rise apartment towers in our CBDs which were already suffering from the adverse publicity of structural problems prior to Covid-19 will now become the slums of the future as they are shunned by homeowners and investors,’ he said.
‘And like after every downturn, there will be a flight to quality properties and an increased emphasis on liveability.’
In January, property prices records were set in 46 of Australia’s 88 statistical regions, CoreLogic data on all homes in an area showed.
Regional areas benefited as more professionals could work from home and shortly after interest rates were cut to a new record-low of 0.1 per cent.
More affordable outer suburban areas did too, with median property price records set in the Moreton Bay area north of Brisbane ($453,542), Adelaide’s north ($390,735), Sydney’s outer south-west ($639,641), Logan south of Brisbane ($539,719) and in the more affordable satellite cities of Ipswich ($367,986), Geelong ($618,897) and Newcastle ($619,189).
Mr Yardney said newer apartments near the city, however, would miss out on the boom. Pictured are high-rise apartments at Sydney Olympic Park
Desirable selling points
Near parks, shops and good schools
Access to good public transport or roads
Close to employment
Sydney’s Northern Beaches ($1.6million), taking in Manly, also made the list, along with Brisbane’s west ($710,251), fitting Mr Yardney’s description of more upmarket inner and middle-distance suburbs.
Separate data from the REA Group showed upmarket Sydney suburbs enjoying the strongest price growth in 2020, based on the prices of homes sold through realestate.com.au and figures from the state Valuer-General.
REA Group chief economist Nerida Conisbee said buyers preferred suburbs near the beach with good restaurants.
‘Over the past 20 years, we have seen a growing shift of people wanting to move closer to the beach,’ she told Daily Mail Australia.
The pandemic accelerated this trend.
‘Being in lock down and unable to travel so freely forced people to spend more time in their local areas,’ Ms Conisbee said.
‘Cafes and restaurants and other forms of entertainment were also highly restricted in some locations across Australia, and as a result, it did appear that people put a higher price on outdoor amenity.’
Proving this point about desirable suburbs, median house prices at Woollahra, in Sydney’s eastern suburbs, surged by 35 per cent to $3.7million, REA Group data showed
Proving this point, median house prices at Woollahra, in Sydney’s eastern suburbs, surged by 35 per cent to $3.7million.
Equivalent values at Killara on Sydney’s North Shore soared by 31 per cent to $3.275million.
Nonetheless, outer suburban areas did well very stronger with mid-point house prices at Kelmscott, 23km south-east of Perth’s city centre, climbed by 39 per cent to a still-affordable $375,000.