New South Wales suburbs where house prices rise the most
New data reveals that you would need to earn an extra $ 20,000 per month or more to enter the market and get a 20% security deposit in these suburbs.
Real estate prices have hit $ 1.2 million in a year for Australian suburbs as the housing market continues to soar amid the Covid-19 pandemic.
Research from Realestate.com.au has shown that more than 250 suburbs saw their house prices increase by around $ 200,000 between May 2020 and May of this year.
24 lucky suburbs have seen their prices skyrocket to $ 50,000 and beyond each month – most of them in New South Wales.
The highest of all grew by $ 1.2 million in one year, or more than $ 100,000 per month.
This means that you will have to earn an additional $ 20,000 per month or more to break into these areas with your 20% security deposit.
But surprise, the suburbs of the capitals are not at the top of the list.
The popular seaside town of Byron Bay in the far north of New South Wales near the Queensland border has claimed the prime position and has seen the highest growth of any region in the country.
According to the latest data, the middle Byron Bay home sold for $ 1,286,000 more in the space of a year.
The normal price of homes in the celebrity-ridden surf town has nearly doubled from $ 1.41 million in 2020 to $ 2.7 million a year later.
Sydney’s prestigious suburbs mainly occupied the rest of the top 10 positions.
Australia’s most expensive state, NSW, accounted for 88% of the country’s fastest growing suburbs.
Sydney’s North Shore Suburbs, Northern Beaches, and the Eastern Suburbs topped the list for NSW.
Byron Bay was definitely the outlier, being the only township outside of the Greater Sydney area to feature in the rankings.
But Professor Hal Pawson, associate director of UNSW’s City Futures Research Center, said it points to a larger problem.
“The real concern in all of this is the plight of the many tenants in regional Australia who were already in ‘housing affordability stress’ before the pandemic… (and) are going to be at increased risk due to increased pressure on the local housing market, ”he told news.com.au.
Professor Pawson said there are three factors driving up house prices, especially in regional areas.
ABS data shows people are flocking from capital cities in search of more space and an escape from the threat of lockdowns, with 10,000 people each quarter leaving metropolitan areas – the highest number on record .
Cashed professionals are looking further because the Covid-inspired teleworking model has made it possible to work remotely, according to the professor.
And finally, he also believes that the “economic shock” of the pandemic has resulted in an increase in demand but a decrease in the supply of housing, causing prices to skyrocket.
“It’s not just a number of people, it’s also the kind of people we’re talking about,” he explained.
He said the types of people who have flocked to the countryside have “mobile” jobs and “generally higher paying jobs”.
Another word for it could be the “Hemsworth Effect” – a phenomenon that sees the rich and famous moving to seaside areas outside of city limits, particularly Byron Bay.
This then increases the costs of houses in those areas, excluding locals from the market and leaving rent as the only option for living there.
“Because they (cash-in metropolitan workers) are able to drive up the price of housing, then someone in this locality who earns the kind of salary that typical job is, is overpriced,” Prof. Pawson explained. .
In the past 12 months, the average rental price in Byron Bay has jumped nearly 30%, according to data from CoreLogic.
A regional Victorian town is feeling the housing price crisis so badly that it is trying to severely limit Airbnbs in the area.
Apollo Bay in southwest Victoria has seen its average rent increase by almost 11%, forcing residents to leave their hometowns.
Bob Knowles, president of the Apollo Bay Chamber of Commerce, is part of a task force seeking to severely restrict the availability of short-term housing.
Locals find that during the summer months there is nowhere to live as owners rent out their properties to vacationers to earn more money than they would with long term rentals.
Mr Knowles told news.com.au “Residents cannot afford to buy property because prices have skyrocketed. If there is no rental housing for young families, they have to go elsewhere.
“It’s a perfect storm.”
New Finder research, released Monday, found that property prices in capital cities had risen by as much as 9% in the past 12 months, pushing back the dreams of first-time homebuyers.
Sydney and Melbourne will see their house prices rise by eight and nine percent respectively over the next 12 months.
That’s a jump of $ 76,619 in Sydney to make the average price of a home a whopping $ 1,070,917 by July 2022.
In Melbourne, homes will go up by $ 64,014, so the average home will cost $ 817,114 over the same period.
“The lower rung of the housing ladder is getting higher and higher,” Finder also noted in her report.