Growth in house prices will accelerate over 2021 and Sydney’s outer suburbs and coastal suburbs are tipped to lead the charge, new research revealed.
Harbour City prices increased by an average of about four per cent over the year and bigger rises are expected over 2021 due to improving buyer confidence and lower interest rates spurring demand.
The consensus from economists and banks is that Sydney prices will grow by an average of at least five per cent, with some tipping double digit rises.
Bullish predictions included projections of 7-11 per cent growth by SQM Research, which has been among the most accurate forecasters of housing values over the past decade.
But housing pundits also warned that price rises would not be evenly spread as buyers were gravitating to outer Sydney and regional NSW, while generally shunning inner city units.
Realestate.com.au reported the biggest increases in buyer demand over 2020 were across the Central Coast and the Greater Byron Bay area.
Searches of listings in the Central Coast suburbs of Glenning Valley, Saratoga, Kariong and Wamberal more than doubled over the year.
There were similar increases in buyer searches across Greater Byron suburbs East Ballina, Lennox Head and Bangalow.
Other suburbs that attracted a surge of buyer interest included outer Sydney suburbs Glenbrook, near the Blue Mountains, and Dural, known for its large acreages.
Buyer searches also doubled in Farmborough Heights at the foot of Mount Kembla on the outskirts of Wollongong.
Realestate.com.au chief economist Nerida Consibee said the growing popularity of these areas suggested more price rises were on the way and the suburbs would be the markets to “watch” in 2021.
Among the forces driving that popularity was a buyer preference for bigger houses and blocks, lower density, and locations offering the prospect of a sea- or tree-change, Ms Conisbee said.
“Priorities are shifting towards lifestyle and space,” she said, adding the COVID-19 pandemic was the likely catalyst for the change.
SUBURBS TO WATCH IN 2021
(biggest annual increase in buyer demand)
1. Glenning Valley 317%
2. Glenbrook 236%
3. Saratoga 209%
4. East Ballina 185%
5. Farmborough Heights 174%
6. Bangalow 150%
7. Lennox Head 145%
8. Kariong 140%
9. Wamberal 139%
10. Dural 139%