In just two years, home values in some Australian suburbs have risen by more than $1 million, while other areas have seen stunning jumps.
The values of homes in some Sydney suburbs and regional NSW areas have risen by a staggering $1 million in just two years since the outbreak of the pandemic.
Homes in celebrity hotspot Byron Bay have skyrocketed 114 percent between March 2020 and 2022.
In the coastal city, the value of a typical home has increased from $1.4 million to $3.02 million in the past two years, an increase of an extraordinary $1.6 million, according to REA data.
In north-west Sydney, the suburb of Glenorie saw house values surge 88 per cent, rising to $2.4 million from $1.27 million in 2020 – nearly doubling in value.
The southern Sydney harbor suburb of Sylvania Waters has seen house prices rise by US$1.13 million over the past two years.
In 2020, house prices typically came in at $1.6 million, but that’s now up 84 percent to $2.95 million in February.
Another suburb that has seen stunning gains was Bayview on Sydney’s North Beaches, where home prices have risen 77 percent, or $1.47 million, in two years. A typical suburban home went from $1.92 million to $3.4 million.
But the suburb that posted the most incredible gains in value was on the Central Coast, an area that has grown in popularity as remote work opportunities became more common during the pandemic.
In the suburb of Wyee, home values rose a whopping 142 percent, from $330,000 in 2020 to $797,500 this year.
Coastal and regional areas in Australia saw some of the highest increases in value, said REA Research Director Cameron Kusher, with the Central Coast in particular recording six suburbs among the top 20 growth areas in NSW.
“The lifestyle trend has been really strong in NSW,” he said The Daily Telegraph.
“People have realized that if they don’t go to the office every day, right now they can live on the beach on the Central Coast or in the Blue Mountains, get a lot bigger lot and live more like them want .”
Austral, in western Sydney, was the second best performing suburb among the 20 fastest growing NSW suburbs, with a whopping 132 per cent increase, taking the typical home value from $439,400 to $1.01 million.
Copacabana on the Central Coast saw the third largest increase of 106 percent with home values rising by $981,500. A typical home has gone from $923,500 in March 2020 to a whopping $1.9 million now.
Mr Kushner said it was unusual for capitals and regions across Australia to be booming at the same time, but the pandemic meant people were saving more but couldn’t spend it on typical things like travel and entertainment, so they turned to injecting the money for real estate too.
Lockdowns also made people realize that given the amount of time they spent there, life had changed and they wanted a more comfortable place to live, he said.
“It’s very abnormal to see rapid growth everywhere at any given time and I think that speaks to the fact that interest rates have been cut so low,” he said.
A huge shortage of available real estate in the market also fueled the boom, according to Mr. Kushner.
“We’ve seen a real reluctance from people to put property on the market and much of that has been due to uncertainty surrounding lockdowns and not knowing if you’re going to get the best price by putting your property on the market market and no one could inspect,” he said.
“So we’ve seen this big drop in supply — at the same time, we’ve seen a lot more people looking to buy properties.”
But Australia’s red-hot property market has finally collapsed, according to recent data.
Australian home prices rose just 0.3 percent in March, falling even in places like Melbourne, according to a new study by REA Group data company PropTrack.
Perth prices also collapsed, falling 0.1 percent, while Darwin’s home values fell 0.6 percent.
According to PropTrack economist Paul Ryan, momentum in the Australian property market has really slowed in 2022, plagued by fears of rising interest rates.