While the real estate sector braced itself for a turbulent year in 2020, the Australian property market ended the year on a surprising high, with house price growth recorded across the nation.
The stage is set for a positive recovery in 2021, and investors are back in the market looking for new opportunities.
With significant government stimulus, continued low interest rates, stamp duty reforms for Victoria and New South Wales, and more buyer confidence, price growth is expected to rise.
The latest State of the Australian Property Market Report by Upside revealed the nation’s 21 hotspot suburbs predicted for price growth in 2021.
Upside director of sales and operations James Kirkland said, “in 2021, we expect to kick off earlier than usual with strong volumes after a build-up of properties that did not go to market in 2020, which could see prices momentarily drop as supply increases.”
Mr Kirkland highlighted that as more people continue to work from home post-pandemic, few homeowners will return to full-time work weeks spent in the company office. This has largely been reflected in the price growth of regional property markets across the country.
“This offers up areas beyond the city limits for Australians to find a home to suit their chosen lifestyle while maintaining a hybrid approach to work,” he said.
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Let’s look at the suburbs Upside recommends watching this year:
This hidden gem is tucked away from the noise of the city yet offers the convenience of a short train ride to Central Station. It also has easy access to the airport, the WestConnex and to the inner-west and Eastern suburbs. Ideal for families, this leafy neighbourhood offers spacious federation and double brick homes at an achievable price.
While the median house price was $1.16 million at the beginning of 2020, the suburb saw a lot of growth despite the pandemic and ended the year at a median house price of $1.35 million. Future price growth gains are expected for 2021.
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Hugged by the stunning Hawkesbury River, this small historical town is now considered as an outer suburb of Sydney, with the train commute to the CBD taking just over an hour. With all the town amenities needed, Windsor offers an excellent lifestyle choice and has gained a lot of popularity during the pandemic.
The median house price in Windsor is $687,000, which offers investors an affordable choice along with solid rental returns and annual growth.
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Popular with young professionals seeking a balanced lifestyle, this coastal suburb has natural beauty in spades. It also boasts excellent schools and restaurants and, importantly, a robust rental market. The median unit price is $940,000 and has experienced 12.25% price growth year-on-year.
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Continually hitting the property lists for top growth suburbs, Melton is well-linked to the city and is a sought-after suburb for families due to its affordable prices, larger blocks, train station and local amenities.
The median house price is $392,000 and the median unit price is $320,000. Upside also reported that the region is poised to accommodate more than 40% of Melbourne’s metro population growth over the next 40 years, with a lot more infrastructure and revitalisation planned.
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This Melbourne suburb offers ample public transport options, as well as a hospital, good schools and lots of shops. As one of the top performing suburbs in the nation, Box Hill showed 20.84% capital growth over 2020. The median house price in Box Hill is $1.6 million.
A friendly, family-centred neighbourhood in Melbourne’s north, Craigieburn boasts large homes with an affordable price tag.
The median house price is $560,000 and the suburb has experienced 7.5% compound growth across five years.
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Sandwiched conveniently between the CBD and the University of Queensland, the leafy and desirable suburb of Toowong is popular with students, young professionals and families.
A $450 million village centre is planned for 2023, along with the release of new river-view apartments. The median house price is $1 million and annual growth is 12.81%. The median unit price is $451,000.
Just 6km from the CBD, Camp Hill is a quick commute for city workers. It also has excellent schools nearby and a range of local dining and entertainment options.
The median house price in Camp Hill is $908,000 and the five-year compound growth rate is 4.1%.
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Manly offers a relaxed coastal vibe just a thirty-minute train or ferry ride from the city. Popular with those seeking a good work-life balance, Manly has achieved a 14.2% annual growth rate across the past three years. The median house price is $880,000.
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With three light rail stations, Franklin is an easy commute to the city. The suburb is peaceful, picturesque with beautiful parklands and is five minutes from the amenities of the Gungahlin town centre.
The median house price is $800,000 with annual price growth of 7.38%.
With a lack of housing supply, this country-feel suburb has seen a lot of growth and performed well during COVID-19. The median house price is $835,000 while the median rental yield is 4.1%.
One of the fastest-growing suburbs in the state, Coombs offers relaxed country-style living and easy access to the city. Unit prices have experienced excellent annual growth of 10.68%, while the median unit price is $524,000.
Just ten minutes from the beach, Millwood has expansive homes on generous blocks. Close to good schools, the suburb brings in solid rental returns of 3.3%. The median house price is $1.02 million. This golden suburb also had the largest annual growth in Adelaide with a 34.6% rise.
Taking advantage of the COVID lifestyle change bug, the coastal suburb of Port Elliot has experienced a lot of buyer interest. The median house price is $510,000 while annual growth is 13.84%.
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This is where country and city living intersect. Mount Gambier offers all the facilities of a larger city with the appeal of a rural backdrop. With interest gaining during the pandemic, the allure of affordable prices and high rental yields is attractive to investors. The median house price is $269,000.
One of Hobart’s most affluent suburbs, Sandy Bay has large family properties, hilltop villas and apartment living. The median house price is $955,000 with annual growth of 6.11%, while the median unit price is $568,000. The lovely suburb is tipped for much more growth in 2021.
A charming city where old meets new, Launceston is rapidly growing. With four major infrastructure projects in the works, there is a lot of encouragement for investors.
The median house price is $465,000, while the median unit price is $398,000 and has experienced annual growth of 13.39%.
With exceptional views of Hobart and the ocean or mountains, and close proximity to the CBD, Blackmans Bay has affordable entry prices and strong annual growth. The median house price is $635,000 with annual growth at 7.63%, while the median unit price is $419,000 with 8.13% annual growth.
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This port city is set to receive over $10 billion in mining and gas-related infrastructure. According to the report, Karratha suburbs have recorded a 61% increase in Sales activity quarter-on-quarter in the last year. The median house price is $465,000, with annual growth of 8.1%.
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This hidden secret close to Fremantle has well and truly been discovered, with sales volumes exploding. For investors, the suburb offers a tight vacancy rate of 0.63% with a large rental population. The median house price is $525,000, while the median unit price is $303,000.
For affordable coastal living, Yanchep offers stunning surrounds and a peaceful, safe environment. In October 2020, Yanchep experienced a whopping 133% sales increase. The median house price is $370,000.
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Words by Katy Holliday
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