Insight Into The ‘Million Dollar’ Suburbs
Million dollar suburb.
Three simple words that mean so much for the Australian property market – providing both buyers and sellers a reason to engage in real estate.
The phrase ‘million dollar suburb’ historically referred to very limited locations around Sydney, Melbourne and Brisbane. However, with ever-growing demand for residential properties, there is a developing trend of outer-city suburbs joining the exclusive ‘million dollar’ club.
Regardless of whether you are looking to purchase an investment property or cash in on great prices, keeping across these million dollar suburbs is important as the statistics can change from month to month.
613 – the magic number
According to CoreLogic’s most recent Property Pulse report, as of June 2016, there are now 613 suburbs across Australia with median property values of at least $1 million. This figure represents a rise of a massive 125 per cent since 2013 and 29 per cent in the last 12 months – highlighting the great demand for property
Looking at NSW in more detail, a considerable 418 suburbs feature on the million dollar list – 379 for houses and 39 for units. The region stands head and shoulders above every other state and territory in the country and suggests the real estate market is flourishing in Australia’s biggest city.
This is further cited in CoreLogic’s list of 25 most expensive suburbs. Not surprisingly, Sydney is home to 23, including the top five, as listed below:
- Darling Point – $6,420,354 median value
- Point Piper – $6,030,272
- Centennial Park – $5,903,531
- Bellevue Hill – $4,524,799
- Cremorne Point – $4,510,566
CoreLogic suggests that with the combination of low interest rates, demand for quality housing and market conditions, the number of million-dollar suburbs will only rise in the coming 12 months. So, what does this mean for buyers and sellers?
The price is right
In the current buying environment, those on the lookout for a new property might find themselves priced out of the market when considering the statistics above. However, this is where the assistance of a professional real estate agent can help.
One of the benefits of working alongside an agent is that they understand Sydney suburbs and where real bargains can be found. For example, if your budget doesn’t stretch to the likes of Darling Point or Point Piper, they will be able to tailor your search to other suburbs. Moreover, instead of waiting for advertisements, real estate agents can provide insight into houses soon to come to market – potentially beating the crowds to your perfect home.
Selling at the right time
If you already own a home in one of Sydney’s million-dollar suburbs, this could also be a great time to think about selling up. Timing is everything in the real estate game and if you wait too long, there is always the chance that the median home value will go down rather than up.
In March 2016, the Domain Group noted that 11 of Sydney’s top-selling suburbs fell below the million dollar mark. While many were still hovering around the figure, it shows how fickle the housing market can be and how proactive investment is the best option.
Million dollar questions
Buying and selling properties are important life events, regardless of the price involved. As such, when it comes to getting the best deal and market conditions, it pays to speak to a team that lives and breathes real estate in Sydney.
For Laing+Simmons, we are all about community. It doesn’t matter if you live in a suburb featured on the rich list or not, we will work hard to ensure you have access to top quality buyers and properties.
If you would like more information about our services, feel free to get in touch with us today.