Top 10 suburbs with the largest variation in home values revealed
The numbers have been crunched to reveal the best areas within the best suburbs.
A deep dive into property values has revealed that even in Australia’s priciest suburbs, there are pockets where homes sell for many times the area’s median price.
A PropTrack analysis of suburbs broken down into SA1 regions – which are small neighbourhoods comprising a few streets – has revealed the priciest areas, where homes are worth millions more than the rest of the suburb.
Across Australia, the median difference in values between the cheapest and priciest pockets within suburbs is $325,000 for houses and $239,000 for units.
But in suburbs at the top end of the market, the price variance is much greater.
The most expensive neighbourhood in Australia is a pocket of Bellevue Hill in Sydney’s eastern suburbs, which has a median value of $16.24m. Most homes in that pocket are mansions on big blocks and many enjoy expansive harbour views.
A sliver of nearby Vaucluse is the nation’s second-most expensive, with a $15.67m median value.
The March issue of Mansion magazine will be out in The Australian on Friday, March 28
Homes oriented towards the harbour enjoy some of the most sought-after views in Australia and are minutes from some of the city’s most prestigious schools.
Melbourne’s priciest pocket is in Toorak, with one neighbourhood full of huge estates with tennis courts laying claim to a median price of $14.3m.
What makes a pocket pricey?
Homeowners in the most expensive part of a suburb often enjoy a waterfront or coastal location, take advantage of the views granted by their position at the highest point in town, and reside in their suburb’s biggest and most luxurious properties.
REA Group senior economist Eleanor Creagh says factors such as large block sizes, heritage-listed homes and catchment zones for sought-after schools all play a role in pushing up prices.
If an area has convenient access to luxury amenities such as fine dining, high-end shopping and cultural attractions, chances are that property prices will be higher, she says.
Proximity to beaches, rivers and lakes can magnify the effect, with wealthy buyers more willing to splurge to enjoy water views or a short stroll to the beach, pushing up prices.
Agent Alexander Phillips of PPD Real Estate in Sydney’s eastern suburbs says that the scale of a view matters, with a panoramic beach outlook worth far more than a mere water glimpse.
“Where you pick up the biggest uplift is if you’re seeing sand and crashing waves,” he says. “It could lift a house from $5m to $8m.”
The data also reveals each suburb’s most affordable pocket – a handful of streets where the least expensive homes are found.
These areas might be further from amenities, higher density, or oriented around main roads rather than quiet streets.
Block sizes might be smaller, while the homes themselves are typically more humble or less architecturally significant.
The data shows that compromising on size, location and building quality can shift the dial when it comes to pricing, allowing an entry into a premium market for less.
This story is from the March issue of Mansion magazine, out on Friday, March 28.
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