What Are the Next Suburbs Where House Prices Will Exceed $1 Million in 2025?
First, let’s look at where the $1 million suburbs are right now and how they’ve been growing over the past decade.
As of May 2024, there were 857 suburbs in Australia with a median house price of at least $1 million, according to the latest Ray White research.
This number is four times higher than it was in 2014 and 17.5% more than just last year.
Most of these suburbs are in New South Wales, which has more than twice the number of million-dollar suburbs as any other state, totalling 358 suburbs in 2024.
Victoria comes in second with 176 million-dollar suburbs, closely followed by Queensland with 174.
Queensland is the fastest-growing state in this regard, with its number of million-dollar suburbs increasing by 25 times over the last decade—from just seven in 2014 to 174 in 2024.
The ACT follows, with an 11-fold increase from six suburbs in 2014 to 70 in 2024.
The research highlights that assuming the growth trend continues over the next 12 months, we can expect around 99 new suburbs to hit the $1 million mark.
Thirty of these will be in New South Wales, 24 in Queensland, and 18 in Victoria.
This growth means Queensland has a high probability of overtaking Victoria as the state with the second-highest number of million-dollar suburbs.
For example, Narara in New South Wales currently has a median house price of $993,596 and has seen an average growth rate of 9.3% over the last 10 years.
If this growth continues, we can expect house prices in Narara to reach $1,086,371 in the next 12 months.
However, Perth and Adelaide are the only capital cities with fewer than five suburbs expected to pass the million-dollar mark.
Here are five suburbs per capital city with the highest potential to surpass the $1 million mark in the next year:
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- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Melbourne property market forecast for 2024
New South Wales
Victoria
Queensland
South Australia
Western Australia
ACT
A final note for investors
As always, these "short term" high growth suburbs aren’t necessarily the suburbs I would recommend investing in.
That’s because when it comes to property investment, it's most important to look for an investment-grade property in the ‘right area’ rather than chasing ‘top hotspot’ or growth areas.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
You see…property investing is a process, not an event.
Things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
The fact is, the property you will eventually buy will be the result of a sequence of questions you will need to ask and answer and a series of decisions you’ll need to make before you even start looking at locations.
Long before we talk about a property or the right location with our clients at Metropole, we look at factors including their age, their timeframes, and the desired end results in other words, what do they really want the properties to do – are they looking for cash flow, capital growth, or a combination of both.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.
