LAKE Macquarie's Blacksmiths has emerged as the suburb with the highest growth in property prices across the region since the pandemic began, according to a new report from CoreLogic.
Dwellings prices, which includes both houses and apartments, in the beachside suburb have more than doubled since March 2020 when the World Health Organisation declared COVID-19 a global pandemic.
Data from CoreLogic reports growth of 53 per cent in dwelling values in Blacksmith which equates to a value increase of $337,452 in three years.
The suburb's median dwelling value has grown from $636,755 in March 2020 to hold a current median of $974,207.
Other suburbs across Newcastle and Lake Macquarie that recorded substantial growth since the pandemic include Teralba (46 per cent); Beresfield (42.3 per cent); Barnsely (40.5 per cent); Tarro (40.5 per cent); Blackalls Park (40.2 per cent); Merewether Heights (39.8 per cent); Redhead (39.8 per cent); Eleebana (39.6 per cent); and Glendale (39.1 per cent).
Overall, dwelling values across Newcastle and Lake Macquarie have recorded an growth of 29.6 per cent since March 2020.
"The change in values since March 2020 really gives you a bit more perspective of the dynamics playing out across the Newcastle and Lake Macquarie region," CoreLogic's head of research Eliza Owen said.
"Looking at the past 12 months, some of the biggest price falls have been in relatively pricey suburbs like Redhead and Merewether Heights, but when you zoom out and look at the total growth position since March 2020, it's these same suburbs that have had some of the biggest gains.
"I think this speaks to a lot of additional value being realised in quality markets in the region, where so much demand has been enhanced outside of Sydney amid hybrid work arrangements.
"Overall, it is higher value suburbs that seem to have retained the largest price gains through the pandemic."
Ray White East Lake Macquarie agent Troy McLennan said Blacksmiths' close proximity to the beach was the biggest drawcard for buyers, with a noticeable increase in Sydneysiders snapping up property in the suburb during the pandemic.
"Blacksmiths is the only pocket that, no matter where you live on that side of the lake, you can walk to the beach within, at the most, a minute," Mr McLennan said.
"It used to be driven heavily by local demand and then the pandemic hit and that demand went through the roof with Sydney buyers.
"Now, it's back to local buyers. It has always been a market that has been driven by locals who know about it and love that lifestyle, they're the ones who fight hard to own it.
"The biggest prices that have been achieved in Blacksmiths have come from local buyers."
Surprise inclusions in the top 20 include suburbs such as Tarro (40.5 per cent) and Windale (37 per cent) which recorded strong growth in dwelling values.
Mr McLennan said Windale appealed to investors and first-home buyers who recognised value in the suburb.
"Ten years ago, no one wanted to know about Windale," he said.
"It was the cheapest, most affordable suburb in the whole region. Pretty much overnight it was discovered by investors and young first-home buyers and it went through the roof during the pandemic.
"You could buy property for $300,000 and now, I don't believe you can buy anything there for under $500,000 anymore."
Ms Owen said that more affordable suburbs such as these could continue to see a rise in popularity as interest rates continue to climb.
"As affordability becomes more of a challenge amid the rate hiking cycle, we may start to see demand pivot slightly toward more affordable markets," she said.
Across the combined regional dwelling market, values remain 30.7 per cent higher in than at the onset of COVID-19, compared with values sitting 10.4 per cent higher across the combined capitals.
She added that while regional values are generally high, migration may be reverting to pre-pandemic trends which could help to ease pressure on demand for some markets.
In regional NSW, the markets with the highest growth in dwelling values since March 2020 are Coffs Harbour - Grafton with 43.7 per cent; Riverina with 43.6 per cent, and Central West with 42.7 per cent.
On a national scale, housing values are 14.8 per cent higher than where they were in March 2020.
National dwelling values rose 28.6 per cent from September 2020 to April 2022 before a rapid rise in interest rates converted this to the largest and fastest downswing on record, with a 9.1 per cent fall from April 2022 through to the end of February 2023.
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