The Australian suburbs where house and unit values have risen the most since COVID-19 hit – ABC News

The Australian suburbs where house and unit values have risen the most since COVID-19 hit
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Australia's property prices surged as the COVID-19 pandemic set in.
However, property values have more recently been easing across most parts of the country, but still remain elevated after earlier, large increases attributed to the "COVID housing boom". 
One capital city led the charge, CoreLogic data reveals, with eye-watering gains and some of its suburbs posting nearly as much as 80 per cent capital growth since March 2020, the onset of COVID-19.
While the impact of eight consecutive rate rises will continue to reverberate well into next year, here are the Australian suburbs that have recorded the largest growth for house and unit values since the pandemic hit our shores.
In Sydney, CoreLogic data shows the south-west suburbs of Austral (up 52.9 per cent) and Leppington (up 48.8 per cent) recorded the strongest growth for houses during the period.
Places such as Mount Victoria (up 40.6 per cent since March 2020) or Umina Beach on the central Coast (up 38.3 per cent) make the list for top-growth suburbs, and some of these areas are located a long way from their capital city's CBD. 
In Melbourne, the Mornington Peninsula suburbs of St Andrews Beach (up 46.9 per cent), Dromana (up 37.3 per cent) and Portsea (up 34.5 per cent) posted the largest growth over the same period.
Suburbs across Logan City, Beaudesert and Ipswich dominate the top-10 suburbs posting the largest growth for south-east Queensland. These included Cedar Vale (up 59.6 per cent), Jimboomba (up 53.5 per cent), Cedar Grove ( up 53.5 per cent), Logan Central (up 53.3 per cent) and Boonah (up 52.9 per cent).
In Perth, south-west suburbs of Cooloongup (up 42.6 per cent), Hillman (up 42.4 per cent) and Parmelia (up 41.6 per cent) posted the largest growth over the period.
"The Adelaide increases are eye-watering and eye-catching," Eliza Owen, CoreLogic's head of research says.
There was a lot of affordability and growth potential in the city that acted as a tailwind against low interest rates, she added.
Data shows the suburb of Hackham West recorded 77.4 per cent growth in less than three years, while Maslin Beach recorded 76.7 per cent.
"I suppose it is coming off a relatively low base and reflects some of the true demographic and structural transformations we've seen through the COVID period," Ms Owen says.
"Adelaide's housing cycle also lags what we see in the eastern states, which may also account for why some of these regions are yet to see value declines."
Overall, Adelaide dwelling values have posted 43.4 per cent growth since the onset of COVID-19, this includes a 46.1 per cent uplift in houses and units up 27.5 per cent. 
Ms Owen expects most markets will likely shift into a downswing over the next 12 months.
"Even those that have been relatively resilient to date," she says.
"I don't think many markets can escape impact from the sharp rise in the cash rate we've seen in the second half of 2022."
Since the peak in April this year, house values in the combined capital cities have declined 8.4 per cent through to November, while unit values are down 4.7 per cent. 
It's also now a buyers' market.
In the three months to November 2021, the median amount of time a listing was on the market before selling was 20 days, this is now up to 35 days for the same period this year.
Many economists have predicted further house price falls next year, with AMP's chief economist, Shane Oliver, tipping a 15–20 per cent top-to-bottom fall in average home prices.
"I think we'll see a bit more levelling out in capital growth over the next 12 months, where the relatively sharp declines of more expensive, volatile markets and the relatively steady cycles of lower-priced markets see a narrowing in price gaps," Ms Owen says.
Fixed-rate borrowers face a big jump in mortgage payments in the next 12 months, with the expiration of record low fixed-term mortgages also set to test the housing market.
Across the combined capital cities, house prices are 15.7 per cent higher than in March 2020, and units are up 5.5 per cent.
"Unit values have been less sensitive to the change in interest rates because buyers don't have to extend themselves as much in terms of borrowing, and there is less of a price correction to be worked through due to the more modest upswing," Ms Owen says.
The majority of home owners who fixed their mortgages at record lows last year will soon see their repayments soar.
"However, the gap in the value uplift between houses and units post-COVID will narrow over time, because house values are generally falling faster than units."
The Reserve Bank of Australia raised interest rates by 0.25 percentage points, to 3.1 per cent, on Tuesday in its bid to contain inflation.
Mr Oliver says the latest interest rate hike, when passed on to mortgage rates, will mean that the amount a new buyer — on average full-time earnings with a 20 per cent deposit — can pay for a home will have fallen 27 per cent from what it was in April this year.
"So the downwards pressure on property prices will continue for some time yet, even if the RBA soon pauses the cash rate," Mr Oliver says.
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