Million Dollar Markets

Million Dollar Markets Australia | Released June 2021 Data to May 2021 Contents Introduction 3 New South Wales 5 Victoria 7 Queensland 9 Western Australia 11 Adelaide 13 Australian Capital Territory 13 Hobart 15 Disclaimers 16 Lead Research Analyst: Jade Harling Introduction by: Eliza Owen 2 Introduction The current upswing in the Australian housing market has National Overview produced some extraordinary results. In the 12 months to May 2021, national dwelling market values increased 10.6%, In the year to March, CoreLogic collected 486,233 sales marking the highest growth rate since July 2010. The value of nationally, 16.6% of which were valued over $1 million. the national dwelling market hit a record high in January This marks a record high in the portion of sales over the $1 2021, and has continued to hit a fresh record high each million mark. month since. In the year to May, CoreLogic estimates there were 218 The wealth effect of house value increases has likely been a markets across Australia where either the house or unit key component of elevated consumer confidence, and median ticked over the $1 million. This includes 198 house Australia’s economic recovery from strict social distancing markets, and 20 unit markets. restrictions through 2020. The increased value of housing also cements the asset as a pillar of household wealth and The highest frequency of suburbs ticking over the million- security, making up 53.0% of household wealth through the dollar-median was in Sydney, with 54 markets seeing either fourth quarter of 2020. houses or units reach a median of $1 million or more. This accounts for 24.8% of markets featured in this analysis. Over New data from CoreLogic shows the upswing has also the year to March, Sydney also saw around 40% of sales carried more Australian households into the ‘millionaires’ transact for at least $1 million. This is unsurprising, given the club. This report showcases the prominence of sales and median house value across the city has been above this price values that are at or above $1 million. point since November 2020. For select capital city and rest of state regions, this report However, the current housing market upswing across highlights the following metrics; Australia is also very broad-based. Each capital city market and ‘rest of state’ region has seen an increase in value over ‣ Annual sales counts, and the portion of these that were the 12 months to May, ranging from 5.0% across greater ≥$1 million; Melbourne dwellings to a 20.3% rise in values across Darwin. This has led to a more vast range of markets reaching the ‣ The number of suburbs where houses or units have a million dollar club across Australia. median value of ≥$1 million; ‣ The highest sold price over the calendar year to date; ‣ Select top sales across high value suburbs; ‣ The highest value suburb medians in the region; and, ‣ The suburbs where either house or unit medians reached the million-dollar-mark in May 2021 compared to May 2020. While dwelling value growth has been strong over the year to 2021, there were some regions not included in the report due to a lack of sales and medians with a value ≥$1 million. 3 Introduction Volume of markets where house or unit median rose to ≥$1 million, year to May, 2021 54 35 30 25 22 18 17 12 5 Sydney Melbourne Rest of NSW Rest of QLD Brisbane Adelaide ACT Perth Rest of VIC Source: CoreLogic In the year to October 2017, which marked the previous peak in Australian dwelling values, there were just 98 house or unit markets that breached this price point, 40.8% of which were concentrated in Sydney, and a further 38.8% were across Melbourne. While there have been several upsides to the current market upswing in terms of wealth accumulation for home owners, there are downsides to consider. For first home buyers, who tend to be more price sensitive, higher house prices have likely prevented home ownership. This is evidenced by the latest ABS finance data, which showed April marking the third consecutive month of decline in finance secured for the purchase of property by this segment. Furthermore, current dwelling value rises have been enabled by record low housing lending rates, which has increased borrowing capacity, and household debt. The Council of Financial Regulators in Australia have noted the associated risk with high household debt levels, and will likely be monitoring this closely through the rest of the current upswing. 1Source: RBA – Table E1, Household and Business Balance Sheets. Accessed here: https://www.rba.gov.au/statistics/tables/ 4 Million Dollar Markets New South Wales Number of sales, annual 140,000 45.0% Sydney Regional NSW 40.0% 80,000 12.0% 120,000 35.0% 70,000 10.0% 100,000 30.0% 60,000 80,000 8.0% 25.0% 50,000 20.0% 60,000 40,000 6.0% 15.0% 40,000 30,000 10.0% 4.0% 20,000 20,000 5.0% 2.0% 10,000 0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 < 1m 1m + sales % of sales over 1m < 1m 1m + sales % of sales over 1m Annual count of sales March 2012 to March 2021 Number of suburbs with a median value ≥$1 million, monthly 60 450 Houses Units Houses Units Sydney Regional NSW 2 400 50 350 79 300 40 69 250 30 200 150 20 100 10 50 53 15 340 265 0 0 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20 May-21 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20 May-21 There are 340 houses and 79 unit markets of Sydney with a current median value of $1 million dollars or higher, this is a total of 25.4% more than one year earlier. Over the year to March 2021, around 40% of sales across the Sydney region sold for at least $1 million dollars. Across regional NSW, 55 markets (53 houses and 2 units) came in with a median value at or higher than $1 million in May 2021, this was a total of 267% higher than one year earlier. Bellevue Hill in Sydney’s eastern suburbs currently holds the number one position as the most expensive house market with a current median house value of $7,616,288. Across regional NSW, Byron Bay has the highest median house value of $2,343,546. Million dollar sales Highest sale price – 1 January 2021 to current Sydney Regional NSW L43/163 Castlereagh Street, 895 Coolamon Scenic Drive, Sydney, 2000 Coorabell, 2479 Sale date: 29/05/2021 Sale date: 18/03/2021 Sale price: $60,000,000 Sale price: $14,100,000 Example of a top sale in the highest median value suburb Sydney Regional NSW 144 Victoria Road, 49 Brownell Drive, Bellevue Hill, 2023 Byron Bay, 2481 Sale date: 16/02/2021 Sale date: 12/02/2021 Sale price: $19,750,000 Sale price: $7,410,000 5 Please note includes sales known to CoreLogic at the time of publication Million Dollar Markets Sydney Regional NSW Highest Median Value Highest Median Value Median value Median value Median value Median value Suburb Region Property type Suburb Region Property type May 2021 May 2020 May 2021 May 2020 Bellevue Hill Sydney - Eastern Suburbs Houses $7,616,288 $5,545,413 Byron Bay Richmond - Tweed Houses $2,343,546 $1,326,378 Vaucluse Sydney - Eastern Suburbs Houses $6,542,958 $5,252,675 Myocum Richmond - Tweed Houses $2,150,045 $1,336,770 Double Bay Sydney - Eastern Suburbs Houses $5,713,953 $4,431,732 Federal Richmond - Tweed Houses $1,999,737 $1,220,833 Rose Bay Sydney - Eastern Suburbs Houses $5,426,388 $3,652,579 Suffolk Park Richmond - Tweed Houses $1,951,204 $1,196,574 Tamarama Sydney - Eastern Suburbs Houses $5,152,227 $4,036,230 Burradoo Southern Highlands and ShoalhavenHouses $1,920,730 $1,423,296 Newcomers Newcomers Median value Median value Median value Median value Suburb Region Property type Suburb Region Property type May 2021 May 2020 May 2021 May 2020 North Avoca Central Coast Houses $1,466,568 $991,507 Lennox Head Richmond - Tweed Houses $1,402,024 $990,798 Copacabana Central Coast Houses $1,437,549 $938,695 Skennars Head Richmond - Tweed Houses $1,380,988 $920,552 Bensville Central Coast Houses $1,374,493 $953,765 Kiama Heights Illawarra Houses $1,379,010 $870,558 Wamberal Central Coast Houses $1,343,872 $978,414 Gerringong Illawarra Houses $1,310,731 $946,156 St Huberts Island Central Coast Houses $1,300,437 $977,741 Kiama Illawarra Houses $1,295,950 $913,814 Forresters Beach Central Coast Houses $1,287,821 $973,841 Bulli Illawarra Houses $1,294,240 $946,140 Terrigal Central Coast Houses $1,281,552 $939,870 Brunswick Heads Richmond - Tweed Houses $1,210,418 $883,694 Avalon Beach Sydney - Northern Beaches Units $1,198,022 $979,690 Ocean Shores Richmond - Tweed Houses $1,194,945 $822,370 Roselands Sydney - Inner South West Houses $1,190,495 $985,695 Woonona Illawarra Houses $1,174,791 $885,447 Heathcote Sydney - Sutherland Houses $1,138,977 $973,882 Mount Pleasant Illawarra Houses $1,163,339 $904,582 Erina Central Coast Houses $1,133,379 $815,208 Byron Bay Richmond - Tweed Units $1,163,325 $881,409 East Hills Sydney - Inner South West Houses $1,132,728 $974,836 Redhead Newcastle and Lake Macquarie Houses $1,151,249 $923,915 Panania Sydney - Inner South West Houses $1,130,932 $984,852 Shell Cove Illawarra Houses $1,143,758 $880,363 Engadine Sydney - Sutherland Houses $1,128,273 $987,903 Jamberoo Illawarra Houses $1,136,910 $973,024 Empire Bay Central Coast Houses $1,124,865 $853,084 Mullumbimby Richmond - Tweed Houses $1,122,870 $726,392 Narrabeen Sydney - Northern Beaches Units $1,121,833 $989,466 Cumbalum Richmond - Tweed Houses $1,113,881 $757,324 Camden Park Sydney - Outer South West Houses $1,117,884 $937,732 Kiama Downs Illawarra Houses $1,106,800 $858,562 Beecroft Sydney - Ryde Units $1,116,817 $912,838 Suffolk Park Richmond - Tweed Units

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