Recent findings from RealEstate.com.au reveal that Australia officially has 46 new million-dollar suburbs as of 2020.
As always, market selection to maximise property performance is imperative. With the announcement of these new million-dollar suburbs it is clear that despite the global health pandemic and national economic recession, certain well-selected areas are performing well.
The RealEstate.com.au findings reveal that in 2020 suburbs exceeding the $1,000,000 threshold comprise of 24 suburbs in Melbourne, 15 in Sydney, and 7 in Brisbane.
Nerida Conisbee, Chief Economist at REA Group said the premium property market has been “one of the most stable property markets during the COVID-19 pandemic.”
Ms. Conisbee states:
“The property market is currently being supported by high levels of stimulus, a stable banking system, mortgage payment freezes, and relative confidence amongst buyers.
As a result, pricing has remained stable, despite being in a recession. This is likely due to the strong momentum leading into the shutdowns, and because highly paid sectors haven’t seen widespread unemployment yet."
Melbourne
In Melbourne, the below 24 suburbs joined the million-dollar club in FY20, rising from six-figure median house prices in FY19.
Ms. Conisbee states:
“Melbourne has seen the biggest rise in suburbs joining the million-dollar club in Australia.”
The city has 119 suburbs with a median of $1,000,000 or above, which is up from 98 a year ago.
New suburbs added to the list span across the trendy inner-north pockets of Brunswick East, Preston, Coburg and Collingwood, and inner-west counterparts like Kensington, Flemington, and Seddon.
The suburb that saw the biggest change in the median price for the 12-months was Box Hill South. A rippling effect created through increasing values in suburbs closer to the CBD, like Surrey Hills and Camberwell, has seen the relative affordability of Box Hill draw buyers demand.
Sydney
In Sydney, the below 15 Sydney suburbs surpass the million-dollar mark in FY20.
Bexley in Sydney's south had the strongest growth of the new entrants, with prices growing $266,000 to $1,251,000.
Nearby bayside suburb, and previous Meridian Australia recommendation, Arncliffe also featured as a new entry to the list.
Again, anecdotally the relative affordability of Arncliffe and Bexley compared to highly-priced suburbs of Sydney’s inner-west has drawn buyers seeking more value for money while remaining close to the city.
3 suburbs in the Hornsby Shire made the list – Asquith, Mount Colah, and Berowra Heights, and The Hills had Glenwood, Winston Hills and The Ponds.
Northmead was the only Parramatta suburb to break the $1,000,000 mark, as well as Wamberal on the Central Coast.
Sydney now has a total of 209 million-dollar suburbs, making it difficult to find an inner or middle ring suburb for under $1,000,000.
Brisbane
In Brisbane, 7 suburbs joined the million-dollar list.
Grange, Clayfield, and Ashgrove in Brisbane’s north, Bardon and Fig Tree Pocket in the west, and West End, in the inner south, also joined the list.
Adelaide
In Adelaide, no new suburbs made the list this year, but 2 dropped out – the median house price in Unley dropped from $1,060,000 to $971,500, and in North Adelaide prices slid from $1,145,000 to $925,000.
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Adam Duffy - Partner at Meridian Australia
P: (02) 9939 3249
References
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.