There are now 857 suburbs in Australia with an average (geometric mean) house price of at least $1 million, as of May, according to Neoval.
That is 18% more than the year before (729 suburbs) and 331% more than the decade before (199 suburbs).
New South Wales has the most million-dollar suburbs, with 358, followed by Victoria with 176, Queensland with 174, the ACT with 70, Western Australia with 47, South Australia with 26, Tasmania with five and the Northern Territory with one.
Ray White Senior Data Analyst Atom Go Tian has researched how many new suburbs will enter the million-dollar club next year, and where they’ll be located.
“Assuming the growth rate of the last decade maintains its trend for the next 12 months, we can expect around 99 new suburbs to pass the $1 million mark,” he said.
“Thirty of these will come from New South Wales, 24 from Queensland and 18 from Victoria, which means Queensland has a very high probability of overtaking Victoria as the state with the second-most count of million-dollar suburbs.”
Predicting the next million-dollar suburbs
Mr Go Tian said the suburbs in each state whose geometric mean house price was most likely to reach $1 million next year were:
- New South Wales = Narara.
- Victoria = Gisborne.
- Queensland = Birkdale.
- Western Australia = Yokine/Coolbinia/Menora.
- South Australia = Lockleys.
- Tasmania = Kingston Beach/Blackmans Bay.
- ACT = Gordon.
- Northern Territory = not applicable.
Those forecasts were made based on current house values in those suburbs and expected rates of price growth. No one knows what the future holds, but, historically, Australian property prices have grown strongly over the long-term. That’s why, depending on your financial circumstances, it might be better to enter the market sooner rather than later. If you’re thinking about buying a home or investment property, reach out so your Loan Market broker can calculate your borrowing power and manage your mortgage application.
