More than 250 suburbs across Australia have seen house values rise by $200,000 or more in the last 12 months. Prices soaring by more than $50,000 per month in 24 suburbs.
The Reserve Bank of Australia lowered interest rates in March of last year, and since that time, property prices in Australia have climbed at astonishing rates. According to the ABS’s Property Price Index, values in Australia's eight capital cities grew by 7.5 percent in the following 12 months. There is anticipation that they have not yet touched their high.
However, growth rates alone do not provide the whole picture. During the same period, house prices in Melbourne's Moonee Ponds climbed by 5%, rising from a median of $1,311,500 to $1,377,000, a gain of $65,500. Still not a little appreciation.
Data table: (view all states)
New South Wales, Australia's most costly state, contributed for 88 percent of the $50,000+ suburbs of monthly growth. The Northern Beaches and eastern suburbs added to the bulk of these.
Byron Bay has had the largest dollar value increase in median property price in the country. Over the last year, median house prices in Byron Bay have increased by more than $100,000 each month, thanks to a surge in demand for picturesque, beachside areas and maybe the Hollywood effect and aswell Netflix helped draw attention. The median price of a home in Byron Bay has risen to $2.7 million, up from $1.4 million just a year ago.
Many of Victoria's fastest-growing suburbs have been fueled by demand for beachfront properties aswell. On the Mornington Peninsula, the median house price in Somers has jumped by more than $500,000 in just a year. The beachfront suburbs of Black Rock and Blairgowrie have also seen considerable increases in the median cost of a home in the last year, both by more than $400,000.
More beachside areas again marked rises, with Sunshine Beach on the Sunshine Coast witnessing the most significant increase in property prices in Queensland, with prices rising just shy of $700,000. Sandy Bay, Tasmania's most expensive suburb, witnessed the most growth, with its typical property price climbing $209,000 in the last year.
In Western Australia, proximity to water was a crucial driver of price growth. The riverside suburb of Dalkeith and the beachfront town of Cottesloe came out on top, with median house price increases of $495,000 and $460,000, respectively.
Although this is excellent news for existing homeowners, the yet-to-own lot are desperately trying to get aboard the growth rocket.
With Australians having a medium taxable income of just $60k, the 20% deposit needed to enter a mortgage, has increased by more than that in some places over the past year. Making it more unaffordable than in previous times.