The Suburbs Where People Are Unlocking Millions
A surprising winner of 2020 was Australia’s housing market. Research by CoreLogic discovered that many suburbs now have a median house price with seven figures, demonstrating that this could be the perfect time to get your home valued, as it may have crept up to the million dollar mark without you knowing.
The research compared housing prices from 2015 to 2020 in suburban and regional areas across the country, with some remarkable results.
Five years ago, 409 suburbs had a median house price above $1million. That’s now jumped to a staggering 559 suburbs.
“In some areas, it’s cheaper to have a mortgage than to rent. So, a lot of people have upgraded their mortgage. They can borrow a bit more now to purchase a larger house or move from an apartment to a house,” says LJ Hooker Head of Research, Mathew Tiller.
It’s a seller’s market
Many people with job security are looking to buy. Holiday plans have been put on hold, and priorities have changed. But there aren’t enough properties to meet the demand. So, this high demand for real estate has pushed up the price.
“Low interest rates and some of the stimulus measures the government has rolled out has seen a strong rise in buyer demand,” says Tiller.
“There is also a lack of listings at the moment which means less competition amongst sellers.”
Demand for inner city living
The leafy inner city suburbs of Melbourne’s St Kilda and Cooks Hill in Newcastle, NSW have more than heritage housing in common. Both now have a median house price of more than $1 million.
The location, amenity and lifestyle that these two suburbs offer coupled with a limited supply of houses on the market for sale, means these gems are in high demand. It’s no wonder the last five years have seen a whopping 85.5% and 81.2% increase in house price respectively for these suburbs.
The Sea and Tree Change
But, it’s not only inner city houses that are worth over a million dollars. “Major regional centres make up the majority of new suburbs added to the $1 million club,” says Tiller.
LJ Hooker found property prices in regional areas are booming, as people search for a lifestyle change. “They may not need to be in the office every day. You can live a little bit further out of a capital city and commute one or two days a week. That’s happening a lot more now than it was prior to the pandemic.”
Victorian seaside towns Lorne, Sorrento and Mount Eliza have more than doubled in price in the last five years. You can expect big sales in the Southern Highlands town of Bowral in NSW and Macmasters beach on the central coast. Southerners with a spare million are flocking to the Noosa area and Currumbin Valley and the report also named Queensland’s Hope Island has the top performer in the country, with a 77.3% increase.
There, the median sale price jumped from $595,000 in 2015 to $1,055,000 in 2020, to the delight of many sellers in the area.
The befittingly named Adam Hope, Sales Manager from LJ Hooker Hope Island, said, “having worked with numerous owners over the past five years, we’re finding many are certainly enjoying the equity they have built due to the rising market.”
“With interest rates so low, and the huge trend towards interstate buyers, I can’t envisage things slowing down. The Hope Island market has been amazing over the last year in particular and I’m really excited to see what the next twelve months have in store.”
Sydney and Melbourne apartments worth over a million dollars
Surprisingly, units are now averaging over a million in some suburbs of Sydney and Melbourne. Only 17 suburbs had an average apartment price above a million dollars five years ago. That’s exploded to 62 suburbs in 2020. A 264% growth.
Data showed that apartments along Sydney’s Northern and Eastern beach suburbs such as Clovelly, Manly and Bondi have passed a million.
Affluent Melbourne suburbs Black Rock, Ashburton and Balwyn North also made the list, thanks to high population growth and limited space.
Canberra and Adelaide have stepped up
Netherby, on the edge of the trendy and affluent Ulney in Adelaide, now has homes valued over a million. The eastern inner city suburbs of Tusmore and Hawthorn also make the list.
To live in Deakin, alongside the official residence of the Prime Minister, The Lodge, and the Royal Australian Mint, you need to save your pennies. Ainslie in ‘old Canberra’ has also made the club, with its heritage buildings and great location between the city and the bush.
Are you a millionaire?
If you’re thinking of selling your home, now is the perfect time to get a valuation. There’s no doubt homes are selling for more than anyone expected right now. With low interest rates, high demand for property and less employment volatility, it’s a seller’s market.
Whether you own an apartment or a house, you’ll probably be pleasantly surprised at how much your property is worth.
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