Sydney holds more expensive suburbs than anywhere else in the country.
Research for Property Pulse output looks at the top decile of selling prices over the three months to January 2016.
What this analysis means is that if 20 sales over the three months were lined up with those sales from lowest to highest, the analysis takes the 18th price as a representation of the most expensive segment of the market.
Over the three months to January 2016, the 90th percentile price of a house in Sydney was $1.5 million and the 90th percentile unit price was $980,000.
Over the same period, the capital cities with the next highest 90th house price percentile was Melbourne at a much lower $1,050,000, but still high by comparison.
This highlights just how much more expensive housing is in Sydney and to a lesser degree, Melbourne’s relativity to other capital cities.
As an example, Perth is cited as the next highest 90th percentile price at $870,000.
We’ve also seen a large difference between the cost of premium housing in capital cities and non-capital cities.
The 90th percentile house price across the combined capital cities is $1,010,000 compared to $675,000 in combined regional markets.
Similarly, 90th percentile unit prices are $830,000 in the combined capital cities compared to $600,000 outside of the capitals.
This data points to the fact that non-capital city areas are the great ‘un-tapped resource for more affordable housing.
Of course employment opportunities in these areas are the main factor holding back the regional areas of the country.
Note: The table in this report highlights the five most expensive suburbs for both houses and units in each state.
The data is based on median values and we have only included suburbs that had at least 10 sales over the 12 months to January 2016.
Sydney’s premium market becomes more evident if we look at the most expensive suburbs in each state based on median values.
The data shows the 5 most expensive suburbs for houses in NSW (all of which are in Sydney) all have a median value of more than $4 million.
In comparison, the most expensive suburbs for houses in Vic and WA are more than $3 million, in SA it is more than $2 million, in Qld, NT and ACT it is more than $1 million and in TAS it is less than $850,000.
Similarly for units, all of the 5 most expensive suburbs in NSW (Sydney) have median values of more than $1 million.
Tennyson in Brisbane is the only other suburb outside of Sydney with a median unit value of more than $1 million.
While Sydney trumps as the most expensive city, it’s important to note the abundance of waterfront homes which contributes to the higher overall cost of housing.
Elsewhere housing is generally much more affordable; however, not everyone has a choice when it comes to potentially leaving Sydney and heading to another area of the country where housing is cheaper.
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