Figures Reveal Suburbs With Most Property Transactions

A new survey has revealed the most trendy suburbs with respect to property deals; the survey also included figures showing the shift to outer-city suburbs that have more space to offer, and figures for tree-change and sea-change hotspots.

Also noted is the high demand for inner-city units, with opportunistic first-time home buyers purchasing properties from investors finding themselves cash-strapped due to the pandemic and its effect on the economy.

While larger suburbs will typically have a higher property transaction volume, the survey results highlight the lifestyle shifts caused by the pandemic, which has encouraged buyers to search for larger homes away from city areas so they can engage in remote work and also take advantage of low interest rates.

According to the most recent Domain House Price Report, in the year to June 2021 the largest property transaction volume (2325) occurred in the Surfers Paradise unit market. Also noted was the huge demand for units in Southport, with a turnover of 984 units, and Broadbeach with a turnover of 859.

Suburbs Ranked By Sale Volume

Domain House Price Report: June Quarter 2021

Andrew Bell, Chief Executive of Ray White Surfers Paradise, stated that the real estate business has been very busy, adding that some investors who owned holiday units chose to sell due to the financial pressure created by COVID-19. This included people who own restaurants and other businesses, while many properties specifically used as Airbnb accommodation were just not getting the returns. This ‘selling’ scenario was balanced out with people who decided to purchase a property during the lockdown.

Mr Bell said there are still many keen buyers from the southern states looking to move to the Gold Coast, and the demand intensifies each time there’s another lockdown. The result is that there’s still a shortage of properties for sale.

Some potential buyers are looking for a place to enjoy their holidays while overseas travel is still out of the question, while others are making a permanent move. Most popular are larger units close to the beach, and prices for these continue to rise. It appears that new buyers are being encouraged to buy when they see their family members or friends purchasing a property.

Moving south, we see that Port Macquarie on the mid-north coast of NSW has just recorded one of the country’s highest turnover levels, with 1026 sales for the year. Naomi Hunter from HEM Property Port Macquarie stated this is the busiest she has ever been, continuously fielding enquiries from city dwellers and sea-changers planning to work from home and anxious to escape the pandemic. She added that, after 10-years in the real estate business, this is a situation she’s never seen before. Their agents are unable to service potential buyers simply because there’s a housing shortage. Southern buyers are looking for family homes with water views, and in the past six months her agency has finalised two deals over $2 million. Ms Hunter added that it was just three years ago that agents were ‘high-fiving’ if they managed to sell a property for $1.5 million. She also noted that the ageing population is causing owners to sell up to move closer to family or go into retirement villages; however, demand at all price points is continually outstripping supply.

Many former Sydneysiders have been drawn to Orange, with 998 property transactions over the past year.

There’s been a steady turnover in outer suburbs of major cities, and while larger suburbs would typically have higher sales figures, remote workers’ demands for a home office and more space has compounded these figures.

With Melbourne, we’re seeing large volumes recorded in the west, with Point Cook at 1154 sales. In the north at Craigieburn there were 1088 and in the south-east at Pakenham there were 1025. These are quite affordable growth corridors that are experiencing high levels of new development.

Ray Hard, a partner at Barry Plant Point Cook, said low interest rates have created an extremely strong demand for properties. People don’t want to rent and are getting into the market by purchasing their first home. In addition, a lot of people have started working from home so are upgrading their homes. Mr Hard added that many of his buyers are locals taking this opportunity to upgrade, but he’s also receiving interest from inner-west and other western suburbs from people looking for larger homes, schools, parks, and other amenities on offer.

There were 1210  transactions in the Melbourne CBD property market; however, compared to the previous year there was a fall in the median price of 1.4 per cent over the year to $542,500.

With the pandemic causing the closure of international borders we’re seeing very few Airbnb guests and international students, which has prompted first-time homebuyers to jump in, while investors reconsider their options.

Daniel Kon at First National Avant suggested that properties listed on the market are possibly due to owners in financial distress, or they’re just not getting the rental returns due to COVID and lockdowns. He added that most buyers looking there are first-time homebuyers who hope to take advantage of free stamp duty below $600,000 and the first-home buyer grant. There are more affordable options in the CBD than there are in the suburbs, and first-time buyers can get a nice two-bedroom apartment for less than $500,000. However, it’s difficult to predict the outlook for price growth, he said. So, what’s happening with investors? Daniel Kon said investors have totally stopped. They’re holding back, waiting to see what the market does.