These blue-chip suburbs have the lion’s share of $5m-plus homes
Coveted luxury homes in these enclaves come with a buyer’s premium beyond most of our wildest dreams.
In most Australian suburbs, buyers with a purchasing power of $5m can afford almost any home on the market. Yet in a number of prime locations, this figure only opens the door to fewer than half the homes in these suburbs.
These areas often feature unmatched waterfront views, lavish homes on big blocks, or heritage-listed estates, prestigious neighbourhoods and proximity to capital cities.
In order to secure these highly desirable attributes, buyers may have to pay an even higher premium.
In NSW, Bellevue Hill, Double Bay and Vaucluse – all harbourside suburbs – have the largest share of houses above $5m.
Their location, upscale amenities and exclusive supply of waterfront properties carry a substantial cost. Buyers with a ceiling of $5m could afford only 10 per cent, 12 per cent and 15 per cent respectively of properties in these areas.
More than 80 per cent of houses were valued above this price point, making them beyond reach even for most high-earning households.
The blue-chip suburbs of Toorak, East Melbourne and Flinders led in Victoria, with a significant number of houses priced above $5m.
With Toorak known for its grand mansions, scarce yet highly coveted real estate and strong sense of community, 52 per cent of houses there were valued above this bracket.
East Melbourne, known for its heritage homes, and Flinders, with many beachfront properties, also had a large share of houses exceeding $5m.
About a quarter of all houses surpassed this mark.
The July issue of Mansion magazine is inside your copy of The Australian on Friday, July 25
In Queensland, the suburbs with the most houses valued above $5m were Teneriffe, Surfers Paradise and Mermaid Beach. In Teneriffe, situated right in the heart of the city and in a riverside location, about a fifth of homes were priced above $5m.
Surfers Paradise and Mermaid Beach, which boast a beachside lifestyle, also had a fair share of properties above the price point. While individuals with a purchasing power of $5m can comfortably acquire 87 per cent and 84 per cent of the properties in those suburbs respectively, about one in seven properties are beyond reach.
Although South Australia and Western Australia tend to have more affordable housing, there are a number of premium suburbs with a large share of houses priced above $5m. Around 10-15 per cent of houses in SA’s Unley Park and Medindie exceeded the $5m mark, with both suburbs in close proximity to Adelaide’s CBD and both renowned for their grand heritage homes.
The prestigious suburb of Peppermint Grove, situated on the Swan River and distinguished by its historic mansions, had the most houses valued above $5m million in WA.
With a ceiling of $5m, buyers can afford 60 per cent of properties there, while two-fifths of properties remain unaffordable.
In the ACT, Forrest, which had a median house value of $3.9m, had the largest share of houses above the price point of $5m. The suburb is known for its heritage properties, proximity to the city centre and its amenities.
Notably, one-fifth of properties in Forrest were priced above this mark.
While most regions offer ample opportunity for buyers with a $5m budget, others with waterfront views, heritage houses and unparalleled lifestyle factors are likely to demand a premium.
These insights highlight how location, amenity and size – and the prestige of homes – will continue to have a significant influence on property values.
This story is from the July issue of Mansion magazine.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout