Number of suburbs with house values over $1m revealed

If property prices in your neighbourhood seem to be climbing higher and higher, you’re not alone. The latest CoreLogic figures have revealed the number of suburbs crossing over the $1 million median house value mark has increased in just seven months.

Over 300 new Australian suburbs have joined the list of areas with median house values of over $1 million, making the Great Australian Dream out of reach for many first home buyers.

Between May and December 2021, 311 suburbs joined the million-dollar club, including 77 Sydney suburbs, and 37 Melbourne suburbs. This brings the number of suburbs with median home values over $1 million in Sydney to a whopping 417, and 221 in Melbourne.

For regional NSW, the number of million-dollar suburbs more than doubled to 116, driven by new entrants in Newcastle.

Percentage of suburbs with a median home value of $1m or above

Source: CoreLogic.com.au

The 20 most expensive suburbs in Australia (based on median house value)

Source: CoreLogic.com.au

These figures come as the national average mortgage size for owner-occupiers reaches a new high, according to newly released Australian Bureau of Statistics (ABS) data.

The ABS figures show that the average mortgage size for owner-occupiers now sits at $595,569. Records were broken across every state and territory, except WA.

Sally Tindall, research director at RateCity.com.au, said “Housing affordability is again in the spotlight with the average loan size hitting record highs across the country, with the exception of WA.”

“Data released from CoreLogic this week shows there are 1,120 suburbs nationally with median house values of $1 million or more,” she said.

“Prices are expected to drop when the RBA hikes the cash rate, however, this could still be a year away and even then, the cost of housing will be too high for many Australians, particularly in Sydney and Melbourne. The damage has already been done,” said Ms Tindall.

RateCity tips for first home buyers

If purchasing your first home is at the top of your New Year’s Resolutions list for 2022 this news may feel deflating, particularly for would-be borrowers looking to purchase in capital cities or regional NSW.

However, there is still hope if you’re hoping to get a foot on the property ladder this year. Here are some of RateCity’s top tips for first home buyers:

1. Climbing the ladder – One option worth considering is looking for a more affordable apartment as a first property, as opposed to trying to get your dream house on the first try. After all, it’s called a property ladder for a reason – you’re meant to climb it!
2. Bridesmaid suburbs – While the number of million-dollar suburbs may be on the rise, they may be situated next to up-and-coming neighbourhoods, or “bridesmaid suburbs”. Consider looking at purchasing in a suburb nearby your ideal location to reduce costs.
3. Go guarantor – As a home buyer, it’s not the easiest thing to save up a 20% deposit for a property - especially within a capital city. One option worth considering that may help you boost your loan application without a sizeable deposit is bringing on a parent or close family member as a guarantor. Be sure to weigh up the pros and cons of this option before proceeding.
4. Government assistance – It’s no secret that property prices are intimidating at the moment. That is why the government has created several home buyer schemes, grants and concessions designed to help Aussies purchase their first home, including the First Home Loan Deposit Scheme and Stamp Duty exemptions. Learn more about government assistance through our comprehensive guide.

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