Skyrocketing property prices and surging demand in the luxury property markets are expected to push many Australian suburbs into the multi-million dollar zone in 2021.
In fact, according to the latest REA Insights report, the number of suburbs in Australia with a median property price over $3 million, doubled in 2020, and we should expect that number to double again over the next 12 months.
Despite the global pandemic, of the 30 Australian suburbs with a median price over $3 million, only five suffered a price decline in 2020.
Meanwhile, over half of the multi-million dollar suburbs saw double-digit price growth during the pandemic.
And the trend is expected to continue for 2021 with the list of $3 million-plus suburbs set to double again over the next 12 months as the residential property market strengthens further.
And their location?
In Sydney, mostly.
However, there are also some potential contenders coming out of other states this year, including, Mont Albert, Portsea, Brighton, Flinders and St Kilda West in Melbourne, and Main Beach on the Gold Coast, which would be the city’s first $3 million-plus suburb.
Bar Beach, a particularly nice suburb in Newcastle, is also expected to make the list by the end of the year.
What has driven the boom in multi-million dollar suburbs?
Officially, Australians have never been wealthier.
Total household wealth jumped to a record high in November last year, primarily thanks to a large increase in savings during the coronavirus pandemic, increased superannuation and house price growth, according to the Australian Bureau of Statistics (ABS).
The Bureau also found that those Australians who managed to remain employed over the past 12 months, and even worked in sectors which benefited from the COVID-19 crisis (such as technology) also enjoyed growth in their income.
By the end of last year, despite the pandemic, income growth, combined with higher savings and house price growth strengthened the luxury residential property market, particularly the ultra-luxury market.
Another factor is that offshore luxury expatriate buyers were a driver of the accelerating luxury market.
Although data is hard to come by, anecdotal evidence supporting this theory is strong.
By the end of 2020, views per listing on realestate.com.au for homes priced over $10 million had surged by a whopping 150% compared to prior to the pandemic.
Australia’s up and coming $3 million-plus suburbs revealed
These suburbs are poised to hit $3-million median prices if their growth trajectory continues.
| Suburb | Region | State |
| Sandringham | Sydney - Inner South West | NSW |
| Mont Albert | Melbourne - Inner East | VIC |
| Millers Point | Sydney - City and Inner South | NSW |
| Main Beach | Gold Coast | QLD |
| Church Point | Sydney - Northern Beaches | NSW |
| Putney | Sydney - Ryde | NSW |
| Portsea | Mornington Peninsula | VIC |
| St Kilda West | Melbourne - Inner | VIC |
| Flinders | Mornington Peninsula | VIC |
| Bar Beach | Newcastle | NSW |
| Curl Curl | Sydney - Northern Beaches | NSW |
| Naremburn | Sydney - North Sydney and Hornsby | NSW |
| South Coogee | Sydney - Eastern Suburbs | NSW |
| Dolans Bay | Sydney - Sutherland | NSW |
| Clareville | Sydney- Northern Beaches | NSW |
| Bondi Beach | Sydney - Eastern Suburbs | NSW |
| Roseville | Sydney - North and Hornsby | NSW |
| Brighton | Melbourne - Inner South | VIC |
| Riverview | Sydney - North and Hornsby | NSW |
| North Willoughby | Sydney - North and Hornsby | NSW |
| Seaforth | Sydney - Northern Beaches | NSW |
| Cremorne | Sydney - North and Hornsby | NSW |
| Lindfield | Sydney - North and Hornsby | NSW |
| Coogee | Sydney - Eastern Suburbs | NSW |
| Waverly | Sydney - Eastern Suburbs | NSW |
| Bondi | Sydney - Eastern Suburbs | NSW |
Source: realestate.com.au
Note: based on applying 2020 growth rate to median prices as of the end of 2020.
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