The top suburbs tipped for future performance in Brisbane, Sydney and Melbourne have been revealed—with the coronavirus shifting the landscape for both rental and sales markets, new research shows.
According to PRD’s latest affordable and liveable property guide Covid-19 made its mark on rental markets in particular over the first half of 2020.
The pandemic also led to market cooling in some capital cities and there was a reduced percentage of homes available in the lowest price range bracket below $500,000.
The exception to this was Brisbane, where homes under this price were more readily available, and Hobart, where properties under $350,000 could be found.
PRD researchers looked at property trends, investment potential, affordability, project development and liveability factors to generate the list.
Top suburbs to buy homes
|House location||Median Price (,000)||Rental Yield||Unit location||Median Price (,000)||Rental Yield|
|Everton Park||$615||3.7%||Arana Hills||$395||5.6%|
|Oakleigh South||$923||2.8%||Brunswick East||$525||4.7%|
^ Source: PRD Affordable and Liveable Property Guide
PRD chief economist Diaswati Mardiasmo said this data captured Covid-19 conditions and how that affected the market, with Sydney suburbs ranking the highest.
“Sydney metro market has recovered from the significant price-drop in mid-2019,” Mardiasmo said.
“However, thanks to Covid-19, the median house price only increased by 1.3 per cent over the past 15 months, which creates unique opportunities for both buyers and sellers.
“Brisbane continues to be a haven for first home buyers, with 45 per cent available for under $500,000.
“In comparison, only 5 per cent of Melbourne is available under $500,000, and zero per cent of Sydney.
“Melbourne presents an opportune time for first home buyers, as there has been a -11.1 per cent softening in median house price over the past 15 months.
“Buyers with a budget of under $800,000 can now access 46.3 per cent of the market; 18 months ago buyers with the same budget could only access 23.1 per cent of the market.”
The market was also changing in Hobart, where only 37.5 per cent of homes were available for under $500,000 in the second half of 2019, and this dropped to 34.6 per cent in the first half of 2020.
Originally published by Renee McKeown in The Urban Developer HERE.