- 7 Sep, 2016

Million Dollar Suburbs are on the Rise

The number of suburbs in Australia with a median home value of $1 million dollars is increasing. As of June 2016, there are now more than 600 suburbs in Australia with an average home price of a million dollars, this is an increase of 29%, when compared to June 2015 data.

The Historical Data of Million Dollar Suburbs

According to CoreLogic data, in June 2008 there were approximately 220 Australian suburbs with an average dwelling value of $1 million. This number fell in 2009 to around 200 suburbs, before rising to just below 300 in 2010 and 2011.

In 2012 and 2013, the number of $1 million median suburbs declined to the mid-two-hundreds, before climbing to just below 400 in 2014. By 2015, these figures had risen to around 500. Now in 2016, there are 570 suburbs where home medians are at $1 million or above, and 43 suburbs where units have an average home value of at least $1 million. The rise in $1 million suburbs has increased by 125%, since 2013.

Where are the Million Dollar Suburbs Located?

Over the last year to June 2016, 14% of home sales and just over 7% of unit sales were at $1 million or over. However, just 5 years ago, only 7.5% of homes sales and 4% of unit sales were in this price bracket. Lets compare data from 2008 and 2016 to get an indication of median growth.

 

Regions with a Median Home Value of $1 million or Over

 

2008 2016
Region Houses Units Houses Units
New South Wales 138 3 379 39
Victoria 32 102
Queensland 21 18 1
South Australia 4 15
Western Australia 32 2 42 2
Northern Territory 3
Australian Capital Territory 2 11 1
Nationally 231 5 570 43

Source: CoreLogic RP Data June 2016

 

Percentage of Dwelling Sales of $1 million or Over

 

2008 2016
Capital Houses Units Houses Units
Sydney 11.5% 4.0% 43.4% 16.6%
Melbourne 4.0% 1.9% 21.8% 6.7%
Brisbane 1.8% 2.0% 7.1% 2.6%
Adelaide 1.0% 0.7% 4.8% 1.6%
Perth 3.3% 1.9% 10.4% 5.1%
Hobart 0.8% 0.4% 1.7% 0.6%
Darwin 0.8% 0.1% 4.3% 1.9%
Canberra 1.8% 0.6% 8.9% 2.4%
Nationally 4.7% 2.5% 20.9% 8.9%

Source: CoreLogic RP Data June 2016

Changes in median home value indicate that homes in Australia are becoming less affordable. Home affordability in Sydney and Melbourne are deteriorating at a far greater pace than other regions.

The Most Expensive Suburbs

Looking at the 20 most expensive suburbs in Australia, all but two are outside of Sydney. Dawes Point, not listed, but located in Sydney, is the only suburb where units make the top 25 most expensive suburb list.

 

The Top 20 Most Expensive Suburbs in Australia

 

Suburb City Property Type Median $s (million)
Darling Point Sydney House $6.42
Point Piper Sydney House $6.03
Centennial Park Sydney House $5.90
Bellevue Hill Sydney House $4.52
Cremorne Point Sydney House $4.51
Potts Point Sydney House $3.99
Vaucluse Sydney House $3.94
Woolwich Sydney House $3.75
Toorak Melbourne House $3.75
Tamarama Sydney House $3.74
Henley Sydney House $3.72
Dover Heights Sydney House $3.69
Lavender Bay Sydney House $3.53
Double Bay Sydney House $3.42
Watsons Bay Sydney House $3.42
Linley Point Sydney House $3.36
Peppermint Grove Perth House $3.29
Rose Bay Sydney House $3.26
Mosman Sydney House $3.21
Bronte Sydney House $3.17

Source: CoreLogic RP Data June 2016

Beyond Sydney and Melbourne, the most expensive suburbs are as follows:

  • Forrest in the Australian Capital Territory with an average home value of $2.06 million.
  • Springfield in South Australia has a median of $1.73 million.
  • Tenerife in Queensland has an average dwelling price of $1.64 million.
  • Larrakeyah situated in the Northern Territory has a median of $1.19.

While the housing market is appearing to slow down, and interest rates are at the lowest theyve ever been, demand for premium property is expected to increase. Therefore, in a year, it is anticipated that even more Australian suburbs will have medians over $1 million, especially with limited stock.

Are you thinking of buying a home? Then contact eChoice and find the right home loan for YOU today. Our mortgage brokers can help YOU find an affordable home loan.


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