Thu. Sep 21st, 2023
Australia’s newest million-dollar suburbs –
Australia’s newest million-dollar suburbs –

As the value of Australia’s residential housing market rebounds back above $10 trillion, new data reveals the suburbs that have seen their median house or unit price top a million dollars.

Data from PropTrack shows 13 suburbs have entered Australia’s one million dollar club for the first time, as property prices continue to rise, reaching new record highs in some parts of the country.

It comes as the Australian Bureau of Statistics on Tuesday revealed the total value of Australian housing rose by $325 billion over the June quarter, to reach $10.09 trillion, just shy of the record high set in the March quarter of 2022.

It found the average property price rose by $25,200 over the three months, bringing the mean value to $912,700 per home.

So, what does a million dollar suburb look like across the country?

Jump to see the full list of new million dollar suburbs.

With waterside suburbs in Australia’s most expensive capital city often commanding prices well in excess of $2m and $3m, more suburbs in Sydney’s west and southwest have made the million dollar club for the first time.

But a million dollars stretches much further elsewhere, with waterfront suburbs in Perth, beachside suburbs in Adelaide and a central suburb in Melbourne also topping the list.

Suburbs in Sydney’s west are entering the million dollar club for the first time. Picture: Getty

The data also shows an additional 10 suburbs have reentered the million-dollar club after slipping off the list in the 2022 property downturn.

PropTrack senior economist Angus Moore says a million-dollar property no longer holds the gravitas it once did.

“A million dollars was once a threshold that was relatively high but today, particularly somewhere like Sydney where the median price is in excess of a million [dollars] for houses and apartments, a lot of suburbs in Sydney are going to exceed that mark,” Mr Moore said.

Sydney is currently the only capital city to boast a median home price of more than $1 million at $1.06 million, according to PropTrack figures.

Canberra follows, with a median price of $841,000, followed by Melbourne ($804,000), Brisbane ($752,000), Adelaide ($679,000), Hobart ($676,000), Perth ($597,000) and Darwin ($498,000).

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Mr Moore says Sydney and Brisbane have seen particularly strong rebounds this year after price falls last year.

“In Sydney prices fell relatively briskly but have recovered surprisingly well this year, given how much interest rates have increased,” he said.

“In Brisbane, which didn’t see as large a downturn, the prices are now higher than they were before the RBA started raising interest rates.”

Sydney’s million-dollar curtain moves west

With Sydney property prices rising 5% over the year, according to PropTrack, Mr Moore says it’s no surprise more suburbs have joined the million-dollar club.

“By definition, you’d expect half of suburbs to be above that and half below, which means a very large chunk of suburbs above a million dollars.”

In August, Catherine Field in Sydney’s southwest had a median house price of $1.07 million, up from $975,000 in December 2022, with properties up 18.3% over the year.

Development suburb Catherine Field in Sydney’s southwest has entered the million dollar club for the first time. Picture:

Also in Sydney’s western suburbs, Guildford now has a median house price of $1.05 million, Merrylands West boasts a median of $1.1 million, while houses in South Wentworthville have a median price of $1.04 million.

Agent Michael Mustapha at Ray White Parramatta says prices in this part of western Sydney had certainly picked up this year, driven by affordable houses on decent blocks of land, easy access to Parramatta, and a shortage of stock.

“There’s a fair bit of demand compared to the last few years. We have young families, young professionals, downsizers and upsizers. The market’s very mixed at the moment.”

Sydney suburbs to reenter the million-dollar house club this year are Austral in the city’s southwest, while units in exclusive Annandale reentered the million-dollar club after dropping out in December, as did units in St Ives in the leafy north shore.

Market resilience in Perth and Adelaide unwavering

The data reflects the ongoing strength of the housing markets in Adelaide and Perth, Mr Moore says, where property prices have jumped 7.41% and 7.57% respectively over the year.

“Adelaide and Perth are the two best performing capital cities in the past year,” he said.

“Neither city really saw a downturn in prices, and that ongoing growth has pushed more suburbs into the million-dollar bracket.”

What a million dollar view looks like in Iluka, Perth. Picture:

In Perth, the riverside suburb of Alfred Cove in the city’s southwest now has a median house price of $1.05 million, with property prices soaring a whopping $20.7% over the year.

Iluka in the city’s north, which boasts an expansive foreshore park nudging the Indian Ocean, has reentered the million-dollar club after slipping out in December.

In Adelaide, the suburb of Glengowrie next to beachside Glenelg has entered the million-dollar club for the first time, with a median house price of $1.03 million.

The nearby coastal suburb of Hove now has a median house price of $1.14 million after property prices jumped 22.4%, and the inner western suburb of Torrensville has a median of $1 million after property prices rose 14.8%.

The beachside suburb of North Brighton, next to Hove, reentered the million-dollar club after slipping out last September.

Glenelg’s ‘halo effect’ is boosting the median value of surrounding suburbs in Adelaide. Picture:

Agent Jarad Henry at LJ Hooker Glenelg and Brighton says Glengowrie, Hove and Brighton were benefiting from the halo effect of Glenelg, which was beyond the budget for many.

“These sister suburbs are the next best options where you’ve still got great shops, cafes and schools nearby.”

He said families were drawn to the big properties and backyards of Brighton and Hove, while downsizers were snapping up duplex redevelopments close to the coast.

“Living footsteps from the beach in the million-dollar range is fantastic value in Australia, whichever way you cut it.”

Inner Melbourne and lifestyle locations on the rise

In Melbourne, units in the inner northern suburb of Kew East joined the million-dollar club for the first time, boasting a median price of $1.1 million.

A number of Melbourne suburbs also reentered the million-dollar club: houses in Maribyrnong in the city’s inner northwest, houses in Ringwood East in the outer east and units in Canterbury in the inner east.

The regional suburbs that entered the million-dollar club this year were all in coastal lifestyle locations.

Coastal regions continue to bring in the money, like Flinders, which overlooks Shellharbour on the NSW south coast. Picture:

Flinders in the Illawarra, Salamander Bay in Port Stephens and Tura Beach on the NSW South Coast all topped a median of more than $1 million for houses.

On the Gold Coast, Bilinga entered the million dollar unit club for the first time, while Biggera Waters slipped back in after departing in October 2022.

The Canberra suburb of Crace also reentered the million dollar house club after leaving last July.

Suburbs that have joined the million dollar club so far this year

New entrants:

Source: PropTrack
Suburb State Property type Median price (Aug 23)
Alfred Cove WA House  $1,050,000
Catherine Field NSW House  $1,065,000
Flinders NSW House  $1,030,000
Glengowrie SA House  $1,025,000
Guildford NSW House  $1,050,000
Hove SA House  $1,135,000
Merrylands West NSW House  $1,100,000
Salamander Bay NSW House  $1,005,000
South Wentworthville NSW House  $1,035,000
Torrensville SA House  $1,000,000
Tura Beach NSW House  $1,010,000
Bilinga QLD Unit  $1,013,000
Kew East VIC Unit  $1,095,000


Source: PropTrack
Suburb State Property type Median price (Aug 23)
Austral NSW House  $1,020,000
Biggera Waters QLD House  $1,042,500
Crace ACT House  $1,180,000
Iluka WA House  $1,100,000
Maribyrnong VIC House  $1,120,000
North Brighton SA House  $1,060,000
Ringwood East VIC House  $1,030,000
St Ives NSW Unit  $1,025,000
Canterbury VIC Unit  $1,010,000
Annandale NSW Unit  $1,285,000

Which suburbs will be next to join the million-dollar club?

Mr Moore says higher interest rates have left affordability “very strained”.

“The new PropTrack housing affordability index shows housing affordability is at its worst level in at least three decades. So that is going to be a bit of a headwind for prices.”

Nevertheless, he says prices would likely continue to rise slowly and steadily over this year and next, given the interest peak was likely in sight.

And it won’t necessarily be the more affordable suburbs that will be the top performers over the months ahead.

“Those more affordable suburbs were certainly doing well last year when interest rates were rising. But this hasn’t been as true this year.”

He said inner city areas were now performing more strongly than more affordable suburbs on city fringes.

“We’re actually seeing a bit of strength in inner-city areas in Sydney, which are more expensive than, say, the southwest. The city and inner south, the North Sydney area and the Lower North Shore have also been among the better performing regions.

“In Melbourne it’s the inner east where prices have performed best over the past year,” he added.

“And in Brisbane, we’ve seen reasonable strength in the inner city, while out west in Ipswich and the south of Brisbane have also done particularly well.”


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