Mid-sized capital city suburbs surge into the million-dollar club

Houses and units in 162 suburbs across the country have surpassed seven-figure median prices through 2024, while the changing market caused 31 to slip out | SEE THE FULL LISTS

Gary and Kellie Osgood with their children Kane, Kara and Abbey. The couple purchased their block of land in Appin back in 1995 for $73,000 and built their family home, which they have just sold for $1.24m. Picture: John Feder

Median house and unit prices in 162 suburbs across the country have entered the million-dollar club through 2024, while the changing market caused another 31 to slip off the list.

Queensland locations represented about two-fifths of the new million-dollar suburbs after the state capital became the nation’s second-most ­expensive housing market.

Higher up the market 26 suburbs jumped into the $2m-plus club and 12 were new entrants to the $3m-plus club.

Analysis by PropTrack for The Australian revealed the median house price in 58 suburbs in Queensland’s southeast corner surpassed $1m, including the neighbouring Brisbane suburbs of Virginia and Northgate, and Carrara and Labrador on the Gold Coast.

Localities in the other mid-sized capital cities were also among the biggest movers, with the typical cost of houses soaring past seven figures in Adelaide’s West Lakes (up 40 per cent) and Tranmere (up 33 per cent).

In White Gum Valley and Beaconsfield, south of Perth, prices jumped 31 per cent to $1.3m and $1.2m, respectively.

REA Group economist Angus Moore said the three capitals were overrepresented given their sizes. “There’s just not as many suburbs there in general, and they are more affordable markets,” he said.

“But even so, if you look at Perth in particular, there’s quite a number of suburbs that have jumped above that million-dollar mark, and all of which have seen 20 per cent or more growth over the past year to get them there, which is very strong.”

In Sydney, units in suburban Revesby and inner-city Zetland and Erskineville inched into the million-dollar club.

However, on the flip side, some parts of Victoria and NSW have begun to fall as a flood of listings on the market have given buyers greater choice.

The Mornington Peninsula suburb of Sorrento was among five blue-chip suburbs in Victoria, including Melbourne’s Elsternwick and McKinnon, to slip below $2m median values.

A dampening of demand for Southern Highlands property in NSW has led houses in Mittagong and units in Bowral to exit the million-dollar club.

Almost half of the new $2m-plus suburbs are in NSW, with Suffolk Park, south of Byron Bay, the biggest mover in this group with a 27 per cent increase in its median house price this year.

Eleven of the 12 new $3m-plus suburbs were also in NSW, with North Curl Curl on Sydney’s northern beaches enjoying a 27 per cent median house price increase to almost $3.8m, up from $2.95m in 2023.

Gary and Kellie Osgood purchased their block of land in Appin, on the southwest fringe of Sydney, in 1995 for $73,000. They spent a further $120,000 to build the family home where they raised their three children and made some additions over the nearly 30 years they lived there. Now downsizing, the Osgoods have just sold for $1.24m after benefiting from the town’s recent 16 per cent growth through 2024.

Gary and Kellie Osgood – with children, Kane, Kara and Abbey – plan to downsize. Picture: John Feder

Appin is one of many mortgage-belt suburbs in Sydney that reached the million-dollar threshold this year. It was joined by Glenfield, Cobbitty, Elderslie, and Emu Plains.

“We are very excited,” Ms Osgood said. “A family have bought it, and we couldn’t have asked for anything better.”

Harcourts Group Australia chief executive Adrian Knowles said he believed interest rate cuts next year would help put a floor under the market by helping buyers re-enter the market.

“It will be offset in the different price ranges,” he said.

“Higher price ranges won’t see as much growth as your more affordable ranges.”

Harcourts CEO Adrian Knowles.

REA Group economist Angus Moore.

But Ms Osgood acknowledged the ever-growing affordability challenge posed by rising prices.

While two of the couple’s three children have managed to get on the property ladder, the schoolteacher worries for the next generation.

“Our kids had to work hard to work and save to get into the market,” she said. “I’m glad they have because it was a big concern.”

Local agent Derek Stone, managing director of Z Realty Group, said despite the region readying to boom after being selected as a key growth area by the state government, a lack of supply was still influencing prices.

Mr Moore said he believed the number of suburbs joining the million-dollar club would continue to grow next year, with REA Group forecasting price growth to hit or surpass 5 per cent in Perth, Adelaide and Brisbane.