️ Highlights:
1. The value of Australia’s residential housing market has rebounded above $10 trillion, with 13 suburbs entering the million-dollar club for the first time due to rising property prices.
2. The Australian Bureau of Statistics reported a $325 billion increase in the total value of Australian housing over the June quarter, reaching $10.09 trillion.
3. Sydney is the only capital city with a median home price exceeding $1 million, followed by Canberra, Melbourne, Brisbane, Adelaide, Hobart, Perth, and Darwin.
4. Suburbs in Sydney’s west and southwest have seen significant growth, while waterfront suburbs in Perth, beachside suburbs in Adelaide, and a central suburb in Melbourne have also joined the million-dollar club.
5. The housing markets in Adelaide and Perth have shown resilience, with prices in these cities rising over the past year and pushing more suburbs into the million-dollar bracket.
The Australian residential housing market is witnessing a significant rebound, with its value soaring above the $10 trillion mark. This resurgence has ushered several suburbs into the million-dollar club, a testament to the escalating property prices across various regions in the country. This report delineates the dynamics of this upward trend and the suburbs that are now boasting median house or unit prices over a million dollars.
Market Overview
According to the recent data from PropTrack, 13 suburbs have newly entered the prestigious million-dollar club, reflecting the continuous rise in property prices and reaching unprecedented highs in certain areas. The Australian Bureau of Statistics disclosed that the total value of Australian housing escalated by $325 billion in the June quarter, nearing the record high established in March 2022. This surge has elevated the average property price by $25,200 over three months, setting the mean value at $912,700 per home.
Spotlight on New Entrants
Sydney takes the lead with several western and southwestern suburbs marking their debut in the million-dollar club. However, this milestone is not confined to Sydney; waterfront areas in Perth, beachside locales in Adelaide, and a central suburb in Melbourne have also secured a spot on this coveted list.
Notably, Sydney stands as the sole capital city with a median home price exceeding $1 million, precisely $1.06 million as per PropTrack’s data. Following Sydney are Canberra and Melbourne with median prices of $841,000 and $804,000 respectively.
Expert Insights
Angus Moore, a senior economist at PropTrack, emphasized that the million-dollar property no longer carries the weight it once did, especially in Sydney where a plethora of suburbs are surpassing this benchmark. He highlighted the strong rebounds witnessed in Sydney and Brisbane this year, overcoming the price falls experienced last year.
Regional Highlights
- Sydney: The western suburbs are witnessing a surge with areas like Catherine Field and Guildford showcasing a remarkable growth, attributed to affordable housing options and proximity to essential amenities.
- Perth and Adelaide: These cities have demonstrated unwavering market resilience, with suburbs like Alfred Cove and Glengowrie joining the million-dollar club, showcasing a significant price increase over the year.
- Melbourne: The inner northern suburb of Kew East has marked its entry into the million-dollar club with units boasting a median price of $1.1 million.
Conclusion
As the Australian housing market navigates through fluctuating interest rates and economic dynamics, the trajectory seems to favor a slow and steady rise in property prices. While affordability remains a concern, the inner-city areas in various capitals are showing stronger performance compared to the more affordable suburbs on the city fringes.
The current landscape indicates a promising future for property investments in Australia, with a focus on inner-city areas offering lucrative opportunities for potential investors.