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The suburbs set to hit $3 million in 2021

Michael Yardney
·4-min read
Do you live in one of these ritzy suburbs? Images: Getty.
Do you live in one of these ritzy suburbs? Images: Getty.

Skyrocketing property prices and surging demand in the luxury property markets are expected to push many Australian suburbs into the multi-million dollar zone in 2021.

In fact, according to the latest REA Insights report, the number of suburbs in Australia with a median property price over $3 million doubled in 2020, and we should expect that number to double again over the next 12 months.

Despite the global pandemic, of the 30 Australian suburbs with a median price over $3 million, only five suffered a price decline in 2020.

Meanwhile, over half of the multi-million dollar suburbs saw double digit price growth during the pandemic.

And the trend is expected to continue for 2021 with the list of $3 million-plus suburbs set to double again over the next 12 months as the residential property market strengthens further.

And their location?

Typical Australian suburb from above in autumn
These suburbs are about to go off. Image: Getty.

In Sydney, mostly.

However there are also some potential contenders coming out of other states this year, including, Mont Albert, Portsea, Brighton, Flinders and St Kilda West in Melbourne, and Main Beach on the Gold Coast, which would be the city’s first $3 million-plus suburb.

Bar Beach, a particularly nice suburb in Newcastle, is also expected to make the list by the end of the year.

What has driven the boom in multi-million dollar suburbs?

Officially, Australians have never been wealthier.

Total household wealth jumped to a record high in November last year, primarily thanks to a large increase in savings during the coronavirus pandemic, increased superannuation and house price growth, according to the Australian Bureau of Statistics (ABS).

Watch: Michael Yardney discusses what 2021 means for property.

The Bureau also found that those Australians who managed to remain employed over the past 12 months, and even worked in sectors which benefited from the COVID-19 crisis (such as technology) also enjoyed a growth in their income.

By the end of last year, despite the pandemic, income growth, combined with higher savings and house price growth strengthened the luxury residential property market, particularly the ultra-luxury market.

Another factor is that offshore luxury expatriate buyers were a driver of the accelerating luxury market. Although, data is hard to come by, anecdotal evidence supporting this theory is strong.

By the end of 2020, views per listing on realestate.com.au for homes priced over $10 million had surged by a whopping 150 per cent compared to prior to the pandemic.

Australia’s up and coming $3 million-plus suburbs revealed

These suburbs are poised to hit $3-million median prices if their growth trajectory continues.

Suburb

Region

State

Sandringham

Sydney - Inner South West

NSW

Mont Albert

Melbourne - Inner East

VIC

Millers Point

Sydney - City and Inner South

NSW

Main Beach

Gold Coast

QLD

Church Point

Sydney - Northern Beaches

NSW

Putney

Sydney - Ryde

NSW

Portsea

Mornington Peninsula

VIC

St Kilda West

Melbourne - Inner

VIC

Flinders

Mornington Peninsula

VIC

Bar Beach

Newcastle

NSW

Curl Curl

Sydney - Northern Beaches

NSW

Naremburn

Sydney - North Sydney and Hornsby

NSW

South Coogee

Sydney - Eastern Suburbs

NSW

Dolans Bay

Sydney - Sutherland

NSW

Clareville

Sydney- Northern Beaches

NSW

Bondi Beach

Sydney - Eastern Suburbs

NSW

Roseville

Sydney - North and Hornsby

NSW

Brighton

Melbourne - Inner South

VIC

Riverview

Sydney - North and Hornsby

NSW

North Willoughby

Sydney - North and Hornsby

NSW

Seaforth

Sydney - Northern Beaches

NSW

Cremorne

Sydney - North and Hornsby

NSW

Lindfield

Sydney - North and Hornsby

NSW

Coogee

Sydney - Eastern Suburbs

NSW

Waverly

Sydney - Eastern Suburbs

NSW

Bondi

Sydney - Eastern Suburbs

NSW

Source: realestate.com.au. Note: based on applying 2020 growth rate to median prices as of the end of 2020.

Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia's leading experts in wealth creation through property and writes the Property Update blog.

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Image: Yahoo Finance
Image: Yahoo Finance