Top Growth Suburbs Reflect Pandemic Trends

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When I reflect on the past 18 months of the pandemic, what really strikes me is the huge social shifts it has forced – and the big ones have played out right in front of us in the property market.

 

CoreLogic has just released its FY21 suburb data, so this week we are revealing the top 5 growth suburbs in Sydney as well as the top 5 in regional NSW.

What’s most interesting here is that almost all of this price growth is a direct result of pandemic trends. 

The key trends are: 

  1. The inner city decentralisation, which is occurring because people can now work from home, and many are buying larger properties providing more space in affordable city outskirt areas

  2. The regional relocation trend, which is also occurring because people can work from home and are buying larger properties, but there’s one more motivator – a major lifestyle change

  3. The upgrading trend, which is primarily a result of the RBA lowering the cash rate and undertaking a QE program that enabled banks to offer super cheap finance. People are also funding their upgrades from billions of dollars in savings from not travelling and holidaying overseas

  4. Strong first home buyer activity, powered by record low interest rates and massive government stimulus designed to support the construction industry

Let’s look at the top 5 growth suburbs in Sydney and regional NSW.

Top 5 suburbs for house price growth – Sydney

  1. Sylvania Waters (Sutherland Shire) up 70% to a median $2,800,000

  2. Colebee (Blacktown LGA) up 64% to $900,000

  3. Bardia (Campbelltown LGA) up 58% to $720,000

  4. Catherine Field (Camden LGA) up 56% to $680,000

  5. Burraneer (Sutherland Shire) up 43% to $2,720,000

Top 5 suburbs for house price growth – Regional NSW

  1. Lightning Ridge (Walgett LGA) up 264% to a median $120,000

  2. Copacabana (Central Coast LGA) up 70% to $1,490,000

  3. Finley (Berrigan LGA) up 67% to $210,000

  4. Kembla Grange (Wollongong LGA) up 65% to $575,000

  5. Teralba (Lake Macquarie LGA) up 63% to $636,000

 All of Sydney’s top 5 growth suburbs are in middle to outer ring areas, reflecting the decentralisation, upgrading for more space and first home buyer activity. 

Campbelltown and Camden LGAs are very popular with first home buyers looking for houses, as well as upgraders seeking large blocks of land and a peaceful, rural lifestyle. 

Also in the top 5 are waterside lifestyle suburbs, Sylvania Waters and Burraneer, reflecting upgrader activity amongst wealthier Sydney home owners.

The top 5 regional suburbs of NSW suggest both the regional relocation trend and first home buying are at play.  A lot of regional relocators are targeting affordable commuter hubs, which is why we see Wollongong, the Central Coast and Lake Macquarie represented here.

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Whilst these trends are the result of the pandemic, they’re not likely to end any time soon. The first movers acted in FY21, but plenty more Australians will be looking to make similar changes in their lives in FY22.

 
Cathy Ellis