Property prices have 'defied the odds' over the past year, with house prices in all major cities recording double-digit annual growth.
A recent Domain report revealed that low wage growth has created disparity between property values and household incomes.
The house price growth in 40 suburbs was more than the annual household income, chalked up as a 'win' for homeowners.
In the past year, house prices increased in 95% of all suburbs. Of these suburbs, 33% saw the median house price outpace the annual household income.
For units, 67% of suburbs had price increases, but only 10% of suburbs outperformed the annual household income.
According to Domain's report, this wealth effect underpinned the 'better-than-expected' economic rebound that was experienced prior to the Delta outbreaks.
Top 20 suburbs where house price growth exceeded annual income
The majority of the top 20 suburbs were in New South Wales, and the other two were in Victoria.
These suburbs were in 'premium markets', located in inner city and lifestyle coastal pockets.
House price growth in Byron Bay and Somers were 10 and nine-times the annual income respectively.
The table below shows the difference in annual house price growth compared with the estimated household income for the top 20 suburbs.
| Suburb | Annual house price growth | Estimated annual income | Difference between house price growth and income |
| Dover Heights, NSW | $1,265,000 | $174,491 | $1,090,509 |
| Bronte, NSW | $1,220,000 | $153,767 | $1,066,233 |
| Northbridge, NSW | $1,050,000 | $192,510 | $857,490 |
| Seaforth, NSW | $925,000 | $194,813 | $730,187 |
| Mosman, NSW | $875,000 | $145,189 | $729,811 |
| Bellevue Hill, NSW | $850,000 | $166,489 | $683,511 |
| Somers, VIC | $731,750 | $85,175 | $646,575 |
| Manly, NSW | $786,000 | $140,986 | $645,014 |
| Palm Beach, NSW | $762,500 | $121,528 | $640,972 |
| Byron Bay, NSW | $655,000 | $68,910 | $586,090 |
| Gordon, NSW | $600,000 | $133,157 | $466,843 |
| Killara, NSW | $612,500 | $145,880 | $466,620 |
| Naremburn, NSW | $585,000 | $151,234 | $433,766 |
| Avalon Beach, NSW | $545,000 | $123,025 | $421,975 |
| Blairgowrie, VIC | $469,500 | $61,502 | $407,998 |
| Pymble, NSW | $576,500 | $177,888 | $398,612 |
| North Balgowlah, NSW | $565,000 | $179,557 | $385,443 |
| Bilgola Plateau, NSW | $520,000 | $138,108 | $381,892 |
| Maroubra, NSW | $479,400 | $99,134 | $380,266 |
| Cremorne, NSW | $514,000 | $135,172 | $378,828 |
Source: Domain
Top 20 suburbs where unit price growth exceeded annual income
While house prices grew three times faster than unit prices, a 'small minority' of suburbs experienced unit price growth more than the household income.
Queensland has the highest proportion of units that gained more in value than the annual household income, followed by NSW, Victoria, and ACT.
But in terms of the number of suburbs, NSW takes the cake again with 12 suburbs, followed by Queensland with six and Victoria with two.
|
Suburb |
Annual unit price growth |
Estimated annual income |
Difference between house price growth and income |
|
Milsons Point, NSW |
$508,500 |
$178,867 |
$329,633 |
|
Little Bay, NSW |
$351,500 |
$117,498 |
$234,002 |
|
Fairlight, NSW |
$299,000 |
$150,831 |
$148,169 |
|
Sunshine Beach, QLD |
$212,500 |
$77,067 |
$135,433 |
|
Darling Point, NSW |
$295,000 |
$170,749 |
$124,251 |
|
Rose Bay, NSW |
$250,000 |
$130,797 |
$119,203 |
|
Double Bay, NSW |
$260,000 |
$142,656 |
$117,344 |
|
Woolloomooloo, NSW |
$213,000 |
$103,279 |
$109,721 |
|
Coolum Beach, QLD |
$181,000 |
$72,984 |
$108,016 |
|
Kingscliff, NSW |
$176,000 |
$70,810 |
$105,190 |
|
Terrigal, NSW |
$200,000 |
$96,658 |
$103,342 |
|
Queenscliff, NSW |
$233,500 |
$135,172 |
$98,328 |
|
Yamba, NSW |
$146,250 |
$50,258 |
$95,992 |
|
Narrabeen, NSW |
$181,500 |
$91,074 |
$90,426 |
|
Blackburn, VIC |
$194,300 |
$104,380 |
$89,920 |
|
Geelong, VIC |
$162,500 |
$82,796 |
$79,704 |
|
Noosaville, QLD |
$132,000 |
$66,255 |
$65,745 |
|
Buddina QLD |
$145,000 |
$79,540 |
$65,460 |
|
Golden Beach, QLD |
$108,000 |
$58,145 |
$49,855 |
|
Mooloolaba, QLD |
$118,000 |
$68,555 |
$49,445 |
Source: Domain
Image by Helen Stegney on Unsplash
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