The Australian home sector outperforming the rest
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The Australian home sector outperforming the rest

Pandemic fuelled renovations have only strengthened prices at this end of the market

By Bronwyn Allen
Thu, Jan 25, 2024 10:55amGrey Clock 3 min

Luxury houses have experienced a far stronger rate of capital growth than the rest of the market over the past 10 years, according to a historical analysis by Australia’s largest agency network, Ray White. Family houses at the median price point have increased by 78 percent in value over the past decade, while prestige houses priced within the top five percent of homes have doubled in value.

Ray White chief economist Nerida Conisbee said land was a large component of prestige homes’ value and this created stronger rates of capital growth.

There are only so many properties you can build in our most expensive suburbs, which tend to be located close to beaches, bays and rivers,” Ms Conisbee said. Anything with even more unique characteristics that are hard to replicate, such as a view or close proximity to the water, are likely to have increased even further.

Strong renovation activity during and after the pandemic accelerated capital growth.

“Luxury homes have become even more expensive over time as more investment has taken place,” Ms Conisbee said. “And while it is not possible to measure, it is likely a higher proportion of well-located luxury homes have been renovated than the rest of the market and almost certainly true that more has been spent on them.

Luxury apartments have also grown in value at a much higher rate than average units. Ms Conisbee said this indicated the rising popularity of apartment living among wealthy Australians. Developers are increasingly catering to this trend by producing high-quality lifestyle apartments with large floorplans, many luxurious inclusions and access to world-class amenities and services.

Ms Conisbee said prestige home values also had a higher rate of appreciation because Australia’s rich were getting richer.

A recent report from Oxfam has found that the wealth of Australia’s richest people has increased at a rate of $1.5 million per hour since 2020,” she said. “A lot of this wealth has been invested in luxury homes around Australia.

The most expensive homes in Australia

CoreLogic data shows the most expensive suburb in Australia for houses is Bellevue Hill in Sydney, with a median value of $9.73 million. Nearby Point Piper is the most expensive suburb for apartments with a median of $3.32 million. In 2023, Australia’s top five sales occurred in Bellevue Hill, nearby Vaucluse and Hawthorn in Melbourne, ranging from $39 million to $76 million.

In regional Australia, the most expensive suburbs are Sunshine Beach in Queensland with a median house price of $2.38 million, Gerroa in NSW ($2.34 million), Surfers Paradise in Queensland ($2.27 million), Burradoo in NSW ($2.25 million) and Noosa Heads in Queensland ($2.24 million).

During the pandemic, the highest capital growth was seen in the most desirable and expensive regional markets, as wealthy city dwellers bought large lifestyle homes and holiday residences in prime seachange and treechange areas. Last year, this trend reversed, with the greatest capital gains seen in more affordable regional coastal towns, according to a new CoreLogic report released today.

The report shows that 35% of Australia’s regional coastal markets had record-high median values at the end of 2023, despite rising interest rates and cost of living pressures. The study analysed 368 coastal markets located at least 50km from the nearest capital city to reveal the top 20 gainers. All of these suburbs had a median value well below $1 million and Western Australia dominated the list.

CoreLogic Research Director Tim Lawless said: “The performance of those with the largest gains and the highest growth rates are not the glamorous hot spots that rose to prominence during COVID. The past 12 months has seen markets that offer a combination of value and lifestyle attributes, such as commuting distance to a major city, great beaches, and quality housing at a more affordable price point, outperform more well-known areas.

“Suburbs in areas such as Western Australia and more northern regions of Queensland where it’s still possible to make a seachange for less than $1 million were the strongest performers last year. Although home values in these regions are mostly at record highs, they remain relatively affordable for seachangers selling out of more expensive metro markets.”

Highest annual capital gains in 2023 – regional coastal towns

1. Bouvard, Mandurah, WA (up 28% to record high of $560,138)
2. Augusta, Bunbury, WA (up 23.2% to record high of $717,573)
3. San Remo, Mandurah, WA (up 22.9% to record high of $678,940)
4. Halls Head, Mandurah, WA (up 22.8% to record high of $694,473)
5. Secret Harbour, South West Perth, WA (up 22.4% to record high of $699,469)
6. Golden Bay, South West Perth, WA (up 22.2% to record high of $613,265)
7. Mulambin, Central QLD, (up 22.1% to record high of $822,553)
8. Usher, Bunbury, WA (up 21.3% to record high of $418,780)
9. Silver Sands, Mandurah, WA (up 21.1% to record high of $592,355)
10. Singleton, South West Perth, WA (up 20.4% to record high of $657,632).

Source: CoreLogic



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We reveal the No. 1 areas for price growth in each capital city

By Bronwyn Allen
Thu, Jul 18, 2024 3 min

Home values across Australia rose by a median 8 percent in FY24, delivering the equivalent of $59,000 in new capital growth to the two-thirds of the population that owns a home, according to CoreLogic data. Investors received total returns of 12.2 percent over the year, including capital gains and gross rental income.

Very tight supply and demand in most capital cities except Melbourne and Hobart was a significant driver of the capital growth, with the smaller and more affordable capital cities of Perth, Brisbane and Adelaide experiencing the most price appreciation over the year. A lack of properties for sale trumped the usual dampening effect of higher interest rates.

As usual, some areas outperformed their city’s median growth benchmark. Here are the top SA3 areas for capital growth in each capital city of Australia in FY24. SA3 areas are large suburbs, or districts incorporating clusters of suburbs, with more than 20,000 residents.

 

Sydney

Home values across Sydney rose by a median 6.3 percent in FY24. The No. 1 area for growth was Mount Druitt. Its median value rose by 13.96 percent to $859,939. Mount Druitt is located 33km west of the CBD. It incorporates the suburbs of Mount Druitt, Ropes Crossing, Whalan and Minchinbury. The Mount Druitt community is very multicultural with almost one in two residents born overseas. It is home to many young families, with the median age of residents being 33 compared to the NSW median of 39.

 

Melbourne

Home values across Melbourne rose by a median 1.3 percent in FY24. The top area for capital growth was Moreland-North with 4.71 percent growth. This took the district’s median home value to $746,488. Moreland-North includes the suburbs of Hadfield, Pascoe Vale and Glenroy. It’s a multicultural community with a particularly large contingent of residents with Italian ancestry. One or both parents of 66 percent of residents were born overseas, according to the 2021 Census.

 

Brisbane

Home values across Brisbane rose by a median 15.8 percent in FY24. The No. 1 area for growth was Springwood-Kingston in Logan City. Its median value swelled by 25.55 percent to $710,569. Springwood-Kingston is approximately 22km south of Brisbane CBD. It incorporates the suburbs of Springwood, Kingston, Rochedale South and Slacks Creek. It is a multicultural community with one or both parents of 55 percent of the residents born overseas, according to the 2021 Census. More than 15 percent of residents have Irish or Scottish ancestry.

 

Adelaide

Home values across Adelaide rose by a median 15.4 percent in FY24. The best area for capital growth was Playford in Playford City. Its median value soared by 19.94 percent to $530,991. Playford is approximately 40km north of Adelaide. It incorporates the suburbs of Elizabeth Downs, Elizabeth Grove, Angle Vale and Virginia. It is home to many young people under the age of 40. The median age of residents is 33 compared to the state median of 41.

 

Perth 

Home values across Perth rose by a median 23.6 percent in FY24. The No. 1 area for growth was Kwinana in Kwinana City. Its median value skyrocketed by 33.19 percent to $618,925. Kwinana is approximately 37km south of Perth CBD. It includes the suburbs of Leda, Medina, Casuarina and Mandogalup. Henderson Naval Base is located here and there is a significant community of servicemen and ex-servicemen living in the area. It is home to many young families, with the median age of residents being 33 compared to the state median of 38.

 

Canberra

Home values across the nation’s capital rose by a median 2.2 percent in FY24. The best area for capital growth was Weston Creek. Its median value rose by 5.24 percent to $937,740. Weston Creek is approximately 13km south-west of the CBD. It includes the suburbs of Weston Creek, Holder, Duffy, Fisher and Chapman. Approximately 43 percent of residents have a bachelor’s degree, which is on par with the ACT median but much higher than the national median of 26 percent. Household incomes are about 35 percent higher than the national median. Almost one in five residents work in government administration jobs.

 

Hobart

Home values across Hobart fell 0.1 percent in FY24. The top performing area for capital gains was Sorell-Dodges Ferry with 2.78 percent growth. This took the area’s median home value to $615,973. Sorell-Dodges Ferry is approximately 25km north-west of Hobart. It incorporates the suburbs of Richmond, Sorell, Dodges Ferry, Carlton and Primrose Sands. The area has a large community of baby boomers and retirees, with the median age of residents being 43 compared to the Australian median of 38.

 

Darwin

Home values across Darwin rose by a median 2.4 percent in FY24. The No. 1 area for growth was Litchfield. Its median value moved 3.21 higher to $672,003. Litchfield is about 37km south-east of Darwin and includes the suburbs of Humpty Doo, Acacia Hills and Southport.  It has a high proportion of middle-aged residents, with the median age being 39 compared to the territory median of 33. About 12 percent of residents are Indigenous Australians. The biggest industries are government administration and defence. Median household incomes are about 35 percent higher than the national median.

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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