Surf Coast: 2021 Market Wrap

It’s been a bumper year for the Surf Coast property market.

Prices have jumped by almost 40% in some local suburbs thanks to low-interest rates and a steady stream of new buyers from Melbourne and interstate. Let’s take a look at the trends that impacted the market this year and where the experts are predicting 2022 might take us.

Record price rises across regional Australia

Property prices across Australia have risen by a remarkable 22.2% over the past twelve months, according to CoreLogic, with the country’s 25 largest non-capital city regions undergoing a record increase in house values.

And while the rate of growth in the capital cities now looks to be slowing, in regional Australia the pace of capital gains has increased over the past three months. In November, regional housing values were up 2.2%, double the rate recorded across the capital cities.

Here in regional Victoria, our property market upturn pre-dates the pandemic boom currently sweeping the nation’s regions. Our real estate boom began three or four years ago and prices have been climbing ever since.

That’s not to say the Surf Coast hasn’t performed well this year. Domain reports that Surf Coast property recorded price growth of more than 30% in the year to June 2021, while three of our neighbourhoods joined the million-dollar club. The median house prices in Jan Juc, Anglesea and Torquay all rose above the $1 million mark this year. In Jan Juc, the median rose by 39.8% to reach $1,307,500, while in Anglesea it now sits at $1,370,000 after a 39.4% rise. Meanwhile, prices in Torquay increased by 23.2% to reach a new median of $1,030,000.

The great migration

The regional property boom is being driven, in part, by the great tide of people leaving the capital cities for a new life in the country or by the beach. Coastal and lifestyle areas are recording the strongest growth trends of all the regional markets, with those within commuting distance of the big cities, like the Surf Coast, proving particularly popular. With remote working, the new norm for many, tree and sea changers are leaving the city behind in search of space, more affordable housing, and a more relaxed lifestyle.

Regional markets surged in 2020 off the back of COVID lockdowns, and we saw the same happen again this year during the prolonged and repeated lockdowns in Melbourne and Sydney. Demand soared here on the Surf Coast from a wide range of buyers, including first home buyers, downsizers and retirees, and upsizers and families. Some were relocating from the city, and some were locals, while others were moving here from elsewhere in regional Victoria. With international travel off the table for most of the year, we also saw demand from people buying holiday homes or upgrading their existing Surf Coast holiday house.

What else contributed to this year’s market conditions?

Historically low-interest rates and easy access to credit played a big part in this year’s booming market. Another factor was the mismatch between buyer demand and the supply of properties for sale. CoreLogic reported that as of 28 November, property listings across regional Australia were 36.9% down on the five-year average. Coupled with more people moving to regional areas (a 5.9% increase in the year to March), while fewer people left them (a 3.5% decline in the same period), the demand for housing has been genuinely high, and this has served to drive prices upward.

What are the experts predicting for 2022?

All four of the big banks are predicting further price growth for the Australian property market in 2022, albeit not at the same rates we’ve seen this year. CBA, Westpac, ANZ and NAB are forecasting further growth of between 5 and 7 per cent next year. And given Torquay’s population is expected to increase by another almost 9,000 over the next 15 years, according to the ABC, the demand for Surf Coast property is likely to remain high.

Canstar’s new property report Rising Stars ranks regional Victoria at number 10 on its national list forecasting the prospects for annual price growth, noting that despite the fact our area has experienced strong price increases over recent years, there is still potential for further uplift in the near future in some locations.

If you’re thinking about buying, selling or investing here on the beautiful Surf Coast, get in touch with us today. And we wish you and your family a very Merry Christmas and a happy and healthy 2022.