Home » The postcodes where house prices have surged 55 per cent in a year despite interest rate rise fears

The postcodes where house prices have surged 55 per cent in a year despite interest rate rise fears

by Press room

Houses prices in some parts of Australia are continuing to surge by an annual pace of 55 per cent despite talk of the first interest rate rise in more than a decade.

After a strong year, the Sydney and Melbourne property markets have slowed, and median prices have shrunk on a quarterly basis for the first time since 2020.

The Reserve Bank of Australia is broadly expected to raise interest rates on Tuesday, marking the first increase since November 2010.

The end of two per cent fixed mortgage rates and the fastest annual inflation surge in 21 years, of 5.1 per cent, have curtailed price growth in Australia’s two biggest property markets. 

CoreLogic research director Tim Lawless said regional Australian housing markets had been somewhat insulated from the slowdown for now.

Pockets are regional area within a two-hour drive of Sydney are still going strong, as are parts of Adelaide and Brisbane.

North Arm Cove, near Port Stephens and Hawks Nest north of Sydney, saw median house prices in the year to April surge by 54.9 per cent to $709,086, CoreLogic data showed.

North Arm Cove, near Port Stephens and Hawks Nest north of Sydney, saw median house prices in the year to April surge by 54.9 per cent to $709,086, CoreLogic data showed (pictured is a house on the market for $800,000 to $850,000)

The top ten performers during the past year

1. NORTH ARM COVE, NSW: Up 54.9 per cent to $709,086

2. NORTH ROTHBURY, NSW: Up 48.5 per cent to $803,684

3. BLACKBUTT, QLD: Up 48.4 per cent to $312,516

4. CEDAR GROVE, QLD: Up 46.6 per cent to $795,665

5. BLACKBUTT NORTH, QLD: Up 46.4 per cent to $408,089

6. BEAUMONT, SA: Up 46 per cent to  $1,739,103

7. BELLINGEN, NSW: Up 45.7 per cent to $1,053,706

8. CESSNOCK, NSW: Up 45.7 per cent to $604,588

9. CURRA, QLD: Up 45.5 per cent to $589,282

10. SHOALHAVEN HEADS: Up 45.4 per cent to $1,293,119

Source: CoreLogic median house prices in the year to April 2022 

For roughly half of great Sydney’s $1.417million mid-point, following a 17.1 per cent annual increase, it is possible to have water views of the picturesque Karuah River.

Buyers able to work from home can also have a much smaller mortgage and a more relaxed lifestyle.

The Hunter region had another strong performer with mid-point prices at North Rothbury, near Branxton, surging by 48.5 per cent to $803,684.

Nearby areas a short drive from the Hunter Valley vineyards had strong growth too with increases of more than 45 per cent recorded at Cessnock ($604,588), Paterson ($980,289), Greta ($744,251) and Bellbird Heights ($631,563).

Inland from Queensland’s Sunshine Coast, the small town of Blackbutt near Nanango had a 48.4 per cent increase to $312,516.

On the other side of Brisbane, the semi-rural area of Cedar Grove near Jimboomba saw its mid-point house price rise by 46.6 per cent to $795,665.

Values there are more affordable than greater Brisbane’s $880,332, following an annual increase of 32 per cent.

Beaumont, in Adelaide’s east, also did well with median prices rising by 46 per cent to $1,739,103.

This was even better than greater Adelaide’s impressive annual increase of 28.4 per cent which took median house prices to $676,546.

Regional New South Wales had the most postcodes where prices rose by more than 45 per cent during the past year. 

Bellingen, an upmarket hinterland area near Coffs Harbour on the Mid-North Coast, saw its median price increase by 45.7 per cent to $1,053,706.

Inland from Queensland's Sunshine Coast, the small town of Blackbutt near Nanango had a 48.4 per cent increase to $312,516 (pictured is a house on the market for $330,000)

Inland from Queensland’s Sunshine Coast, the small town of Blackbutt near Nanango had a 48.4 per cent increase to $312,516 (pictured is a house on the market for $330,000)

Beaumont, in Adelaide's east, also did well with median prices rising by 46 per cent to $1,739,103.

Beaumont, in Adelaide’s east, also did well with median prices rising by 46 per cent to $1,739,103.

On the South Coast, Shoalhaven Heads on the beach east of Nowra had a 45.4 per cent increase, taking prices to  $1,293,119.

Australia’s median property price in April grew at an annual pace of 16.7 per cent to $748,635, but this marked a marked slowdown from last year’s 22 per cent increase which was the fastest annual growth since 1989.

With a 20 per cent deposit factored in, a borrower paying off a typical Australian home would have a $598,098 mortgage.

So someone with a $600,000 hone loan would see their monthly repayments rise by $47, from $2,306 to $2,353, should the RBA raise the cash rate by 0.15 percentage points from a record-low of 0.1 per cent to 0.25 per cent.

That’s assuming the banks pass the RBA rate rise on in full, taking a typical variable mortgage rate from 2.29 per cent to 2.44 per cent. 

A move on Tuesday afternoon would mark the first official interest rate rise since November 2010 and the first during an election campaign since November 2007. 

Three of Australia’s Big Four banks – ANZ, Westpac and NAB – are expecting the cash rate to hit two per cent by 2023.

The RBA last month predicted this would see a 15 per cent fall in Australian home prices.

Mr Lawless said the housing market was likely to slow later this year as interest rates rose.

‘With the RBA cash rate set to rise, we are likely to see a further loss of momentum in housing conditions over the remainder of the year and into 2023,’ he said.

Bellingen, an upmarket hinterland area near Coffs Harbour on the Mid-North Coast, saw its median price increase by 45.7 per cent to $1,053,706

Bellingen, an upmarket hinterland area near Coffs Harbour on the Mid-North Coast, saw its median price increase by 45.7 per cent to $1,053,706

Home much a rate rise will cost you if interest rates go up on May 3

$500,000: Monthly repayments rising by $39 from $1,922 to $1,961

$600,000: Monthly repayments rising by $47 from $2,306 to $2,353

$700,000: Monthly repayments rising by $54 from $2,691 to $2,745

$800,000: Monthly repayments rising by $62 from $3,075 to $3,137

$900,000: Monthly repayments rising by $70 from $3,459 to $3,529

$1,000,000: Monthly repayments rising by $78 from $3,843 to $3,921

Data based on variable rate increasing from 2.29 per cent to 2.44 per cent 

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