Queenscliff, Whale Beach and Kirribilli named Australia’s most luxurious suburbs to own a home

Despite an economic crisis, the number of Aussie suburbs with median house price of $3 million has doubled. Here are the new mint suburbs.

Despite an economic crisis that was the worst downturn since the Great Depression, the Australian property market hasn’t faltered.

Cashed-up Australians are lining up to spend on properties, helping to push a whole new list of Aussie suburbs into the $3 million plus bracket.

According to Real Estate Australia, the number of suburbs with a median price of more than $3 million doubled in 2020, with some suburbs in regional areas joining the list for the first time.

Beachside suburbs of Queenscliff and Whale Beach on Sydney’s northern beaches and Kirribilli on Sydney Harbour recorded the biggest price increases, with more than half the suburbs on the list seeing double-digit price growth.

While most of these costly areas are located in Sydney, Canberra had its first member of the club with Forrest entering the list in 2020.

Clovelly, Killara, East Lindfield, Northbridge, Mosman, Hunters Hill, Bringelly, Artarmon, Castlecrag, Dover Heights and Balmain East in NSW were all on the $3-million list.

There are plenty of other suburbs joining the list for the first time, including Mont Albert in Melbourne’s inner east, Portsea, Brighton, Flinders, St Kilda West, Main Beach on the Gold Coast and Bar Beach in Newcastle.

“The luxury market is rebounding but not as quickly as what we’re seeing elsewhere,” REA chief economist Nerida Conisbee said.

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Bar Beach in Newcastle has joined the $3 million club. Picture: Amy Ziniak

According to the Australian Bureau of Statistics, total household wealth hit a record high in November 2020, driven primarily by a big increase in savings, as well as increased superannuation and growth in house prices.

Towards the end of 2020, views per listing on realestate.com.au for homes with a price tag above $10 million had increased by 150 per cent compared to prior to the pandemic.

While the increased demand may be explained by people stuck at home browsing beautiful properties online, median price increases in Australia’s most expensive suburbs suggests otherwise.

Of the 30 suburbs with medians prices of more than $3 million, only five had a price decline.

The data from the recent property outlook report from Real Estate Australia showed a resilient property market in Australia that’s outshining a recession as buyers are doing what they can to snag up property.

As well as the uptick in the luxury property market, there’s been a key shift to regional areas as Australias escape the inner city – a major trend that’s dominated the property market over the past year which is set to continue into 2021, the REA Insights Property Outlook Report 2021 revealed.

The property market was resilient overall in 2020 with house and unit prices rising, although rental markets suffered while investor demand was low and new developments slowed dramatically.

First homebuyer activity accelerated, with enquiries on realestate.com.au up 62 per cent on the year prior, but this is likely to soften as investors return and the market heats up in 2021.

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Main Beach in the Gold Coast is part of the $3 million club. Picture: Richard Gosling

Ms Conisbee, the report’s author, said many of the themes and momentum we saw towards the end of last year will continue in 2021.

Low interest rates, record levels of government stimulus support and Aussies being able to knuckle down and save more over the past year has seen property demand increase.

In addition, the Government’s HomeBuilder incentive is helping to boost the house and land development market while there has also been an uptick in investor activity.

There was a 44 per cent jump in listing views in regional Australia on realestate.com.au compared to a 16 per cent rise for capital cities in the second half of 2020, with the smaller property market of the ACT leading the growth in views, while demand lagged in Victoria.

“Canberra had one of its best years on record and looks set to continue on the same trajectory in 2021,” Ms Conisbee said.

“Perth is seeing the best conditions since the last mining boom with the rental market particularly hot. Great conditions in first homebuyer suburbs will ease but the rest of the city will continue to do well,” she added.

“Improved mining conditions resulted in a strong Darwin market, and like Perth, rental conditions are particular good.”

The Sydney market is picking up while Melbourne is still feeling the sluggish effects of the lockdown. “Sydney is on a fast trajectory for growth with particular strength in outer suburban areas, Northern Beaches and Central Coast,” she said.

“Melbourne’s prolonged lockdown has resulted in a slow recovery. Expect strong growth in outer suburban areas and on the Mornington Peninsula but unit rental markets will remain weak,” she added.

Meanwhile, Brisbane is experiencing “strong conditions” as is the Gold Coast and Sunshine Coast, but Ms Conisbee added that greater certainty on interstate borders will help population growth and housing demand.

Adelaide did not experience any price declines during COVID-19 and the rental market remains strong there. “At this stage, it appears that southern Adelaide will be the top performer in 2021,” she projected.

Hobart faced some challenges early in the pandemic but has powered through to achieve one of the best results nationally. “House prices continue to rise with the city’s median now higher than Adelaide, Perth and Darwin, and may hit a median similar to Brisbane in 2021,” Ms Conisbee said.

Rental markets are likely to improve but remain weak in inner-city and student-populated areas, including in Victoria which accounts for almost 85 per cent of the increase in vacant units since the start of the pandemic. “The rental market for housing is strengthening,” Ms Conisbee said.