Pinpointing the best-performing capital city and regional locations in December 2011, three years after the Global Financial Crisis, recent research from Property Investment Professionals of Australia (PIPA) and CoreLogic has shone light on the property market’s historical resilience in the face of economic turmoil.
The research found capital city dwelling values increased by up to 39 per cent over the three years from the end of December 2008 – a time when Australia was emerging from the GFC and government stimulus was ramping up.
PIPA Chairman Peter Koulizos said the top capital city results showed a mix of inner and outer-city suburbs, with six of the top performers in Sydney.
“The dominance of Sydney in the results shows nobody rings the bell to tell you when the upward swing of a property cycle has started,” he said “When you do hear it, it’s too late because it’s already begun.”
On a national level, no Perth suburb cracked the top 10, however, regionally Port Hedland clocked in third for dwelling value increase with a 40.3 per cent change from 2008 to 2011, while South Hedland was sixth with a 34.6 per cent change over the same period and Newman came in eighth with 32.9 per cent.
From a state perspective, Piara Waters witnessed the biggest percentage change (20.6) in the Perth metropolitan area, followed by Lathlain (17.7) and Harrisdale (15), though these increases were relatively modest compared to WA’s regional areas, where fifth-placed Millars Well recorded a 22.3 per cent boost.
Mr Koulizos said the research showed the resilience of property prices during turbulent times, though he conceded the best performing locations following the pandemic could be completely different to those in 2011.
“The way people work will likely change significantly post-pandemic and this will have an impact on less traditional property investment locations,” he said.
“Lifestyles will undoubtedly change, which will make living outside the inner-city more appealing. If you don’t have to go to the CBD every day for work, because you can work from home, then you don’t have to live near it.”
The 2011 findings complement PIPA research released in May showing house prices increased by as much as 100 per cent across the nation in the five years following various recessions.
For Perth, the five years ending in 2014 saw property prices go up 11.4 per cent and 27.3 per cent in the five years ending in 1996.
Rhys Prka, The West Australian, 7 September 2020