To say that 2020 has been interesting would probably be a massive understatement, but despite COVID-19 and Australia’s first recession in nearly 30 years, Australia’s residential real estate market proved remarkably resilient.
While the initial shock of COVID-19 led to a 2.1% decline in national property values between April and September, Australian housing values were 1.1% higher over the year to November following a recovery trend in the past two months, according to CoreLogic.
“Housing values have been supported by a strong mix of regulatory, monetary and fiscal measures, which have induced record-low mortgage rates, the deferment of mortgage repayment for households impacted by COVID-19, support for low income households, as well as grants and concessions for owner-occupier purchases,” explained Eliza Owen, CoreLogic’s Head of Research Australia.
One of the notable trends of 2020 has been the demand for lifestyle areas. Recent internal migration data reveals more people are leaving the cities for regional areas, especially in Victoria, said Ms Owen. She pointed out though that this trend may have been exacerbated by COVID-19, but the pandemic was not necessarily the trigger.
As part of number crunching for its Best of the Best 2020 Report, CoreLogic looked at the areas that had the greatest 12-month change in values. The relative popularity of lifestyle markets shone through in these results, which found that regional Australia outperformed the combined capital cities market.
“Sunshine Beach on the Sunshine Coast has seen the highest annual capital growth in houses nationally, compared with 2019 when St Kilda in Melbourne saw the highest housing growth,” said Ms Owen.
When looking at growth in house values, eight of the 10 suburbs on the list are regional locations, with Tasmania and Queensland dominating that list.
It’s a similar scenario for growth in unit values – only two of the 10 suburbs that showed the greatest growth in value over the 12-month period were in a capital city location. Again, Queensland featured quite heavily.
The tables below show the top-performing suburbs nationally for 2020, but keep in mind that past performance is not an indicator of future performance.
Houses: Top 10 suburbs based on growth in value nationally
| Rank | Suburb(s) | Region | 12-month change in value | Median house value |
|---|---|---|---|---|
| 1 | Sunshine Beach | Qld- Sunshine Coast | 27.6% | $1,643,454 |
| 2 | Rosebery | Tas- West and North West | 27.3% | $111,136 |
| 3 | Cygnet | Tas- South East | 27.0% | $503,061 |
| 4 | Miles | Qld- Darling Downs – Maranoa | 25.6% | $140,641 |
| 5 | Queenstown | Tas- West and North West | 25.2% | $106,829 |
| 6 | Sunrise Beach | Qld- Sunshine Coast | 24.4% | $1,230,062 |
| 7 | Alawa | Darwin | 24.0% | $486,416 |
| 8 | Port Macdonnell | SA- South Australia – South East | 23.4% | $267,038 |
| 9 | Howard Springs | Darwin | 23.1% | $633,992 |
| 9 | Waverley | Tas- Launceston and North East | 23.1% | $267,469 |
Source: CoreLogic Best of the Best 2020. 12-month change is the percentage difference between the hedonic home value index in the same period compared to 12 months ago. Data is current to November 2020. Sorted alphabetically by capital city.
Units: Top 10 suburbs based on growth in value nationally
| Rank | Suburb(s) | Region | 12-month change in value | Median unit value |
|---|---|---|---|---|
| 1 | Horsham | Vic- North West | 25.7% | $225,718 |
| 2 | Currumbin | Qld- Gold Coast | 24.9% | $632,749 |
| 3 | Mildura | Vic- North West | 24.1% | $222,155 |
| 4 | Cable Beach | Western Australia – Outback (North) | 22.3% | $219,544 |
| 5 | Findon | Adelaide – West | 22.2% | $329,158 |
| 6 | Bilinga | Qld- Gold Coast | 21.8% | $664,355 |
| 7 | Palm Beach | Qld- Gold Coast | 20.8% | $560,203 |
| 8 | Wynyard | Tas- West and North West | 20.7% | $253,608 |
| 9 | Mount Pleasant | Perth – South West | 20.2% | $681,211 |
| 10 | South Gladstone | Qld- Central Queensland | 19.9% | $136,051 |
Source: CoreLogic Best of the Best 2020. 12-month change is the percentage difference between the hedonic home value index in the same period compared to 12 months ago. Data is current to November 2020. Sorted alphabetically by capital city.
Best-performing suburbs in each capital city
CoreLogic identified the best-performing suburbs in each of the capital cities. The tables below show the suburbs in each state that experienced the greatest 12-month change in value for houses and units.
Interestingly, Darwin had the best-performing suburb of all of the states when looking at the change in the value of houses, but was the worst performer when it came to growth in unit values.
It’s also worth noting that all but one of the suburbs featured here experienced double-digit growth. The exception was Nightcliff in Darwin, where unit values grew by 6.5% over the 12 months to November.
Houses: Best-performing suburb in each capital city
| Capital city | Suburb | 12-month change in value | Median house value |
|---|---|---|---|
| Adelaide | Alberton | 18.1% | $475,074 |
| Brisbane | St Lucia | 13.6% | $1,367,721 |
| Canberra | Flynn | 15.5% | $724,136 |
| Darwin | Alawa | 24.0% | $486,416 |
| Hobart | New Norfolk | 17.6% | $338,861 |
| Melbourne | Collingwood | 11.9% | $1,200,347 |
| Perth | Wannanup | 17.2% | $458,673 |
| Sydney | East Ryde | 19.2% | $1,641,990 |
Source: CoreLogic Best of the Best 2020. 12-month change is the percentage difference between the hedonic home value index in the same period compared to 12 months ago. Data is current to November 2020. Sorted alphabetically by capital city.
Units: Best-performing suburb in each capital city
| Capital city | Suburb | 12-month change in value | Median house value |
|---|---|---|---|
| Adelaide | Findon | 22.2% | $329,158 |
| Brisbane | Springwood | 13.7% | $249,840 |
| Canberra | Ngunnawal | 12.1% | $463,880 |
| Darwin | Nightcliff | 6.5% | $264,717 |
| Hobart | Brighton | 11.2% | $300,968 |
| Melbourne | Kingsville | 16.6% | $520,063 |
| Perth | Mount Pleasant | 20.2% | $681,211 |
| Sydney | Avalon Beach | 12.2% | $978,824 |
Source: CoreLogic Best of the Best 2020. 12-month change is the percentage difference between the hedonic home value index in the same period compared to 12 months ago. Data is current to November 2020. Sorted alphabetically by capital city.
Cover image source: Lienka (Shutterstock)
This article was reviewed by Editorial Campaigns Manager Maria Bekiaris before it was published as part of our fact-checking process.
About Effie Zahos
About Canstar’s Editor-at-Large, Effie Zahos, has more than two decades of experience helping Aussies make the most of their money. Prior to joining Canstar, Effie was the editor of Money Magazine, having helped establish it in 1999. She is an author and one of Australia’s leading personal finance commentators, appearing regularly on TV and radio.
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