Several suburbs across Australia rose as the top performer over the past year in terms of house prices and rent growth.

Two separate reports from PropTrack showed that demand for homes for sale and for rent surged over the past year as supply for both market segments continued to dwindle.

Biggest rent gainers

PropTrack economic analyst Megan Lieu said a common trend in the rental market over the past two years into the pandemic was the “search for a change of scenery” among Australian renters.

“This is particularly evident in the five fastest-growing suburbs for weekly rents in 2021 — three of these suburbs are located in New South Wales, where residents have endured extended lockdowns and where purchasing a property has become increasingly difficult,” she said.   

Ms Lieu said larger family homes in East Lindfield became in demand, especially among households who seeks bigger spaces for a home office.

“For many, working from home remains the norm in 2022 — we expect demand for coastal, regional and beachside suburbs to remain high this year and with it will come an ongoing surge in their weekly rental prices,” she said.

Top-performing housing markets

In terms of housing markets, 127 suburbs reported annual gains of $50,000 or more every month over the past year.

REA Group senior economist Eleanor Creagh said the surge in home lending contributed to the rapid increase in house prices.

“Across Australia, 178 suburbs have seen house prices increase by $500,000 or more over the past 12 months, while a further 832 suburbs saw year-end value growth of more than $200,000,” she said.

Mr Creagh said similar to rental markets, the trend of seeking larger spaces and bigger block sizes was a key demand factor last year.

This has prompted many homebuyers to look for properties in outer suburbs and regional locations, particularly those in beachside and coastal areas.

“With more time spent at home and a continuation of working remotely, space and lifestyle have become an increasingly important consideration,” she said.

The prime housing segment saw some of the biggest gains in prices over the past year.

“That’s no surprise given house prices have surged Australia-wide, meaning higher value suburbs will see the dollar value of prices increasing the most,” Ms Creagh said.

New South Wales accounted for most of these high-growth areas.

In fact, Dover Heights reported the biggest monthly increase in house prices at around $111,500, bringing its median price to $5.66m.

Point Piper, on the other hand, registered the most substantial monthly increase in unit prices at $57,500, pushing its median unit price to $3.4m.

“These suburbs mostly have one thing in common, aside from phenomenal price growth – they are all beachside or waterfront suburbs,” Ms Creagh said.

—

Photo by @johnarano on Unsplash