Median property prices highlight affordability pressures

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Aug 9, 2016

Median property prices highlight affordability pressures

Darling Point is again at the top of the property-price leaderboard, but CoreLogic's analysis of median property prices reveals affordability pressures are growing in NSW and Victoria.

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Sydney has the nation's largest share of million-dollar suburbs.

A total 613 suburbs across Australia now have a median property price of more than $1 million. The result is a 29% increase over the previous year, and a 125% increase in three years, according to CoreLogic.

New South Sales led the way, with 68.2% of the nation's million-dollar suburbs, including Darling Point at the top, with a median property price of $6.4 million. NSW's share of million-dollar suburbs in 2008 was only 59.7%, showing that climbing prices are being centralised in two states, NSW and Victoria.

Victoria’s portion of million-dollar suburbs has increased from 13.6% in 2008 to 16.6% in 2016.

The median price for apartments was above $1 million in 43 suburbs, making up 7% of the total suburbs studied. The median price of apartments in Sydney's harbourside suburb Dawes Point was almost $3 million as at the end of June 2016, the period for the study. Suburbs had to have recorded more than 100 valuations to be included in the study.

Tasmania was the only state to have no suburbs with a median property price of more than $1 million.

Queensland and Western Australia saw large declines in their share of million-dollar suburbs.

"The data highlights the bracket creep that has occurred over the housing growth cycle, and how housing affordability in NSW (Sydney) and to a lesser degree Victoria (Melbourne) has deteriorated. An increasing number of suburbs in these two states now have a median value of at least $1 million," the CoreLogic report states.