Apr. 03, 2022 at 4:20 pm

Millionaire’s Row – Welcome to the Australian suburb that has the highest median home value

admin2 years agono commentAustralia Business Consumer COVID 19 finance money PROPERTY Real estate

134views

Bellevue Hill, an exclusive suburb of eastern Sydney, is where buyers must be multimillionaires to afford a home at a reasonable price.

CoreLogic’s new data has revealed that Bellevue Hill is Australia’s most costly suburb, with a median home value of $8.7million.

The suburb’s harbourside location lies just a stone’s throw from Point Piper, who holds the title of longest-running title at $3.2 million.

On a slightly above average yearly salary of $80,000, it would take someone more than a century to pay off the median Bellevue Hill home and more than 40 years to pay off a median Point Piper unit – that’s if they didn’t spend a single cent of their wage on living expenses.

CoreLogic’s annual Best of the Best Report concentrates on Sydney’s most prestigious suburbs. The data however shows that all real property exploded in 2021.

The estimated value of Australia’s residential real estate in November 2020 was $7.2 trillion.

Fast forward 12 months – and multiple COVID-19 lockdowns and close international borders – and Australia’s combined real estate value now sits at an astonishing $9.4 trillion.

Detached houses were the biggest winners, growing 24.6 percent over the past year. Units grew by 14.2 percentage.

CoreLogic Head of Research Eliza Owen said that “strong residential market performance was driven by many elements, including low rate, fiscal, and institution support for households, high household savings and high household savings as well as relatively low levels in advertised stock.”

“Rates of housing turnover were also low in years before these factors increased housing demand. This may explain why November’s recent sales volume of 32.6 percent was higher than the 10-year median.

It’s not surprising that remote work has contributed to the increase in value of picturesque regions.

She stated that “the popularity of regional Australia can also be seen in many aspects of the Best of the Best Report 2021.”

“Yamba, a quiet coastal suburb in the Coffs Harbour–Grafton area of NSW, has achieved the highest annual increase in units of suburbs throughout Australia, at 56.6 %.

“Regional suburbs were represented in many of the top value growth tables, including Ocean Grove units (up 41.7%), Fraser Island units (wide Bay (48.1%)) and Campbell Town houses (50.5%).

The penthouse at 163 Castlereagh Street was sold for $60million, making it the most expensive sales of the year. The combined value of all 10 top-selling properties reached a staggering $407 million.

Ms Owen stated, however, that 2021 will forever be remembered for being a boom-year in property. She also said that there are signs of slowing growth over the next 12 months.

Ms Owen stated that the constraints of slightly tighter lending conditions and erosion of housing affordability will lead to a lower growth rate across all property values in 2022.

These forces are a headwind to the property market performance. A slower growth rate will likely be accompanied by fewer sales. Listings and sales activity will eventually follow price momentum.