Despite a relatively subdued housing market in 2010, the number of Australian suburbs with a median home price of $1 million or more surged 35 per cent in 2010, according to research by RP Data.
There are now 212 suburbs in the “million-dollar property club” compared with 78 five years ago. The majority of these (56%) are in Sydney and 20 per cent in Melbourne.
Peppermint Grove, in Perth, is the nation’s most expensive suburb, with a median house price of $4.6 million. Resource-rich Western Australia had 12 per cent of the nation’s wealthiest suburbs.
Vaucluse in eastern Sydney was second, with the average home costing $3.8 million, while the city’s Bellevue Hill was third at $3.4 million.
Victoria’s most expensive suburb Toorak ranked eighth nationally, at $2.45 million, according to RP Data said.
Queensland had 6 per cent of suburbs with the median home costing more than $1 million, the Australian Capital Territory had 2 per cent and Northern Territory had 0.5 per cent.
“Over the past five years, the premium sector has typically fared quite well (outside of 2008) and has recorded strong growth in property values,” said Cameron Kusher, senior research analyst at RP Data.
“During 2011, we would expect that there is unlikely to be a further 35 per cent increase in the number of suburbs within the $1 million club.”
Overall home price growth in 2010 slowed to 4.7 per cent in 2010 as the central bank’s seven rate increases since October 2009 took effect.
“We are anticipating subdued residential property market conditions during the year and the premium sector’s performance will also likely be impacted by high interest rates and ongoing global economic uncertainty,” Kusher said.
Source: RP Data
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.