Here are 10 suburbs where property prices are rising over $50,000 per month

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Australia’s property market has boomed over the past 12 months and the coronavirus pandemic and subsequent lockdowns have done little to curb the skyrocketing trajectory of property prices.

Since the Reserve Bank slashed rates to a record low 0.10% in March last year, house prices have risen by 1% to 2% each month meaning property prices rose by to $10,000 per month in many parts of the country.Concept Of Property Real Estate Investment With Houses Placed On Top Of Coins

Australia’s national median house price has climbed exceptionally close to the million-dollar mark at $955,927 – which is a huge 18.8% increase over the year, or 5.8% over the June quarter, according to Domain’s latest quarterly House Price Report.

In fact, 6 Aussie states have hit record highs for their third consecutive quarter, while the other two are again at their highest point in several years.

But the median house prices only tell half the story – when you look more granularly, some areas have seen substantially stronger growth.

According to recent realestate.com.au data, more than 250 suburbs across Australia have seen house prices increase by $200,000 or more over the past 12 months.

A lucky 24 suburbs saw their prices soar to $50,000 and beyond each month – most of those in NSW.

The highest of all rose by $1.2 million in a year — which is more than $100,000 a month.

Australia’s most expensive state, New South Wales, accounted for 88% of these $50,000-plus monthly growth suburbs.

Of these, suburbs in Sydney’s Northern Beaches and eastern suburbs accounted for the majority.

But the top spot was taken by the increasingly popular and trendy beachside town of Byron Bay in far northern NSW.

The area, which is famous for its celebrity clientele – had the highest growth seen across the country with the median property price now sitting at $2.7 million.

That’s a whopping increase of $1.286 million in the space of just a year or $107,166 per month.

The normal house price in Byron Bay basically doubled, going from $1.41 million in 2020 to $2.7 million a year later.

Northbridge in Sydney’s North also saw a huge jump in median prices, taking second place on the list.

The suburb’s median property price has risen $1.04 million over the past year or $86,666 per month to a new median of $4.07 million.

Palm Beach, Bronte and Killara made up the remainder of the top 5 with median property price increases in the realm of $965,000, $890,000 and $887,500 respectively.

Top 10 Australian suburbs with the biggest hike in median house price rises

Top 10 Suburbs

Source: Realestate.com.au

Buyers flock to beachside suburbs

It wasn’t just Byron Bay that saw property demand heighten as people re-evaluated how they live in the new Covid-19 world.

Demand for beachside suburbs has also been a driving force behind many of Victoria’s highest growth suburbs.

In Somers, on the Mornington Peninsula, the median house price has risen in excess of $500,000 in just 12 months, the data shows.Walking Down The Beach

The beachside suburbs of Black Rock and Blairgowrie in Melbourne have also seen significant gains in the median cost of a house, each with rises of more than $400,000 over the past year.

In Queensland, Sunshine Beach on the Sunshine Coast has seen the largest dollar value increase in house prices, rising just shy of $700,000.

In Tasmania it was Sandy Bay that saw the greatest increase, with its median house price rising $209,000 over the past 12 months.

Access to the water was also a key driver of price growth in Western Australia, where the riverside suburb of Dalkeith and oceanfront Cottesloe came out top, recording median house price rises of $495,000 and $460,000, respectively.

This is perhaps unsurprising given ABS data shows that people are pouring out of capital cities in search of more space and an escape from the threat of lockdowns, with 10,000 people every quarter leaving metropolitan areas – the highest number ever recorded.

At the same time, the pandemic has changed not only where people want to live, but also the type of property they want to live in.

The Covid-19 pandemic restrictions have significantly changed home ownership goals and what Australians want most in their next home.

With more Australians working from home and juggling school and family commitments under one roof, spacious living is now the top priority, further accelerating the trend towards larger homes.

There has also been a renewed interest in the concept of the 20-minute neighbourhood where buyers want to live in a property where there is everything available at their fingertips.

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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


'Here are 10 suburbs where property prices are rising over $50,000 per month' have 4 comments

    Avatar for Michael Yardney

    September 15, 2021 David

    Hi Michael, have been reading your posts for a while…and really enjoy them. Question for you – my wife and I just sold our invetment propery in Birkdale (bought for $500K in 2019, sold for $830K) to restructure our finances. The goal now is, when ready, to purchase either one “better” blue chip investment property, or two less expensive properties – as we have a budget (including borrowing capacity) of ~$1M. First question is do you advise buying one rather than two properties with the advantage of being able to secure someing within more desired locations (keeping in mind that we did well in an outer CBD region previously in Birkdale)…or spread our portfolio over two properties? Second question is whether we should be looking to secure now or hold out to see if things ease?

    Much appreciated.

    Reply

      September 15, 2021 Michael Yardney

      David – this is a very personal question, I will respond directly to your email address.

      Reply

    Avatar for Michael Yardney

    September 13, 2021 Stylz

    I am perplexed on how people are able to afford to pay these prices. There was a time when it was being blamed on overseas buyers bidding with cash in briefcases at auctions. With Covid locking down the international borders that has shown to be false. Michael are you able to explain how are these houses being afforded when real wage growth has been so low? Good topic for next article.

    Reply

      September 13, 2021 Michael Yardney

      With interest rates being low Australians can borrow more, and this is a cycle of upgraders with wealthy Aussies spending big on their homes, upgrading to A grade homes in better locations. Thanks for the suggestion – a great topic for a future podcast

      Reply


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