2021 was a milestone year for the Australian property market. Demand has far outstripped supply and driven prices to record-setting heights.
The seller’s market was bolstered by several factors, including historically low-interest rates, the return of ex-pats to our shores, and swollen bank accounts due to travel bans and lockdowns.
All of these factors led to stronger competition amongst buyers; however, the most notable influence was a significant increase in internal migration—referred to as the ‘great migration’.
The Australian Bureau of Statistics’ Regional Internal Migration reports shows Sydney lost 31,300 residents, between April 2020 and April 2021. These numbers are expected to rise as data from the peak of the Delta variant outbreak is made available.
While we do not have a complete picture of internal migrations just yet, the desirability of regional NSW is overwhelmingly apparent in local property prices.
Corelogic data shows the state’s top five median price changes have all occurred in regional areas, with suburbs like Gerroa up 123 per cent in the past 12 months alone.
COVID-19 has changed our lifestyle priorities, and it looks like the internal migration property trend is set to continue into 2022.
Work arrangements have given city-dwellers the flexibility to explore areas outside of their standard commuting range, with regional hubs like the Illawarra offering easy commutes to the city and airports.