Property goldmines: 1500+ Aussie suburbs where house equity has surged since 2018
Homeowners across the country are sitting on record levels of equity thanks to surging demand in the past five years. Take a look at the suburbs that have seen the most jaw-dropping gains.
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Australia’s booming real estate market has been bad news for those trying to get a foot on the first rung of the property ladder.
But the extraordinary surge in demand for houses in recent years has proven to be a goldmine for mortgage-holders across the country, with many seeing huge equity gains - in some areas of Sydney to the tune of several million dollars.
A new report by PropTrack has measured the equity gains, for both houses and units, since 2018 for suburbs in Adelaide, Sydney, Brisbane, Melbourne, Perth, Canberra, Hobart and Darwin.
PropTrack economist Angus Moore told the Daily Telegraph rapid equity gains in certain areas had delivered a considerable windfall of wealth for many families, which gave them a sudden freedom to make big financial decisions affecting their future.
“There is a wealth effect,” Mr Moore said.
“Those households will be a lot more confident in their spending and they will be able to use that equity to upgrade their home sooner than they may have expected,” he said.
Here’s a look at the biggest equity gains in the major capitals.
To explore the data for your city, go here.
ADELAIDE
Homeowners in many Adelaide suburbs have seen their equity grow since 2018, but one suburb stands out in particular.
As The Advertiser reports, median house prices in the inner-southern suburb of Malvern rose by a staggering 65.7 per cent- or $852, 474 - over the five years, taking the price from $1.2975m to $2.15m.
Malvern’s growth smashed gains in every other SA suburb over the period, with eastern foothills suburb of Beaumont the next best, rising by $677,179 to a new median of $1.635m.
Klemich Real Estate agent Matt Smith told The Advertiser Beaumont was a “blue chip” suburb that was popular with family buyers and that popularity had only grown since Covid.
“There is some parity between a good sized family home and the allotment on which it sits in Beaumont, and there’s space for the children to run around on,” Mr Smith said.
There were also sizeable gains in Goodwood and Somerton Park where the median increased by more than $600,000 while homeowners in St Peters, Torrens Park, Unley, Hove, Henley Beach, Aldgate and Stirling have seen their equity increase by over $500,000.
Elizabeth North, Smithfield Plains and Elizabeth South in Adelaide’s north and Sellicks Beach in the south all saw increases in median prices above 90 per cent.
However the equity growth in those suburbs was lower, in real terms, than the gains seen in the suburbs mentioned above.
READ THE ADVERTISER’S FULL REPORT AND SEE THE EQUITY GAINS FOR YOUR SUBURB
SYDNEY
As Aidan Devine reported, many Sydney homeowners are now sitting on a gold mine with huge price increases delivering equity gains of $500,000 in a quarter of the city’s suburbs.
According to the PropTrack analysis, the most significant gains were for houses on bigger blocks, in a range of suburbs over 20km from the CBD.
There were also big gains in some coastal suburbs that became a popular retreat from Sydney’s affluent east during Covid.
Dozens of suburbs saw equity gains above $1m, including Glenorie, Glenhaven and Putney and the northern beaches suburbs of Fairlight, Balgowlah and Freshwater.
Homeowners in 96 suburbs saw increases above $500,000, or a quarter of suburbs where data was available.
On average, median house prices in the Greater Sydney area, which includes the Central Coast and Blue Mountains, have increased by 36 per cent since 2018, but only 3.2 per cent for units.
House prices are up by five per cent since the start of the year, according to PropTrack’s monthly Home Price Index.
Adrian Tsavalas, director of inner west agency Adrian William, told the Daily Telegraph homeowners were often surprised to learn how much their homes were worth, given the negativity around interest rates.
Mr Tsavalas said those with modern, or fully-renovated, houses were in a particularly strong position as their properties were highly sought after amid a diminishing supply of new housing.
READ THE DAILY TELEGRAPH’S FULL REPORT AND SEE THE EQUITY GAINS FOR YOUR SUBURB
MELBOURNE
While much of the highest growth in Adelaide and Sydney was seen in more affluent areas, Melbourne’s battler suburbs were among those to see the biggest equity gains since 2018.
As Alesha Capone reported, 90 areas in Melbourne saw median price increases that delivered equity gains over $200,000 in the five years to July 2023.
And among those were several battler suburbs, such as Clyde and Koo Wee Rup in the southeastern suburbs, Riddells Creek in the Macedon Ranges, Strathtulloh in the west and in the fringe suburbs of Diggers Rest and Bacchus Marsh.
In those areas, the equity gains ranged from just under $200,000 to over $370,000 in the case of Riddells Creek.
The report also highlighted solid growth in units in Capel Sound, where the median price rose by 38.2 per cent to $678,000 and Donvale, where the median rose by 36.6 per cent to $895,000.
PropTrack economist Angus Moore said rising interest rates had prompted many home buyers to look for more affordable houses with bigger blocks and room to work from home in Melbourne’s outer suburbs - features that were particularly important during the pandemic.
“Much of the past five years includes the pandemic and one of the important factors then was people looking for larger properties, which you can get in places like the Mornington Peninsula, the outer east, northwest and southeast,” Mr Moore said.
READ THE HERALD SUN’S FULL REPORT AND SEE THE EQUITY GAINS FOR YOUR SUBURB
BRISBANE
Many Brisbane homeowners are now sitting on record levels of equity, according to the PropTrack analysis.
As Elizabeth Tilley reported, house prices across the city have risen by almost 50 per cent in the past five years, thanks to soaring demand, low supply and lifestyle trends driven by the pandemic.
Homeowners in 49 suburbs have seen their equity rise, on average, by $400,000 or more, while those in 269 suburbs in the Greater Brisbane area have seen gains of $111,000 since 2018.
The biggest capital growth was seen in Regency Downs, in the Lockyer Valley, where the median house price soared by nearly 96 per cent to $606,750, equity growth of $296,709.
The report also recorded significant capital gains in the inner Brisbane suburb of Chelmer, where the median price surged by 90 per cent, or $890,469, and Targina where price rose by 82 per cent, or $700,219.
Unit prices in some areas have also seen huge growth with the median price in Algester rising by 77 per cent to $585,000 since 2018, a capital gain of $287,472.
PropTrack economist Angus Moore said Brisbane had seen “very strong” growth over the past five years and, as was the case in the other major cities, had been turbocharged by the pandemic.
“The areas that have seen the most growth are related to what we saw during the pandemic — areas where people can find larger homes, which is usually in the outer suburbs,” Mr Moore said.
READ THE COURIER MAIL’S FULL REPORT AND SEE THE EQUITY GAINS FOR YOUR SUBURB
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