MELBOURNE, Australia – Melbourne takes the lead, having 24 suburbs tipping beyond million dollar-price points. Sydney comes in second place with 14. As for Brisbane, it has 7. Out of these suburbs, 10 dropped below. Melbourne has three, while Sydney has four.
The financial downturn in Australia and COVID-19 had little effort in dampening the increase of million-dollar suburbs. As per new data, it unveils that prices came down further in the previous three months.
Across Australia, 46 suburbs became a part of the million-dollar group in 12 months, up to June 2020. This information is as per REA Group data.
Melbourne directed the charge, having 24 suburbs to tip past the million-dollar median house point. Sydney followed Melbourne with 14, while Brisbane came after with 7 suburbs.
However, median house values in 10 suburbs dropped under the million-dollar point. Melbourne and Sydney witnessed three and four drops, respectively, removing these from the list. After that, one suburb in Brisbane and two more suburbs in Adelaide.
As observed, suburbs with lesser than 30 deals at this time are also not part of the list.
Nerida Conisbee, a chief economist in REA Group, stated that the top end of the asset market was one of the very steady asset markets amid the Coronavirus pandemic. There’s stability as high-revenue segments have yet to witness prevalent employment losses.
More suburbs entered the list of the million-dollar group in the past 12 months more than those that dropped out. However, there are still some chances to acquire into a quality suburb for six figures. This statement was as per Conisbee. She also stated it’s possible in Adelaide and Brisbane.
Melbourne witnessed the best jump with median costs in the seven figures. The tally is 119 suburbs, yet Conisbee stated that it was too quick to disclose how the following lockdown might impact the asset market.
Conisbee said that Sydney homebuyers might find it more challenging to acquire a property near to the city, which is worth a six-figure budget. She highlighted the expensive pricing in Sydney, having 15 suburbs in the million-dollar list. It brings a total worth of 209 million dollars. They are making it more struggling to look for a middle or inner ring that’s under the median.
The yearly figures are still optimistic, while national real estate costs edged in the previous three months. There’s an increase in the property value by 7.1% in the past 12 months to June. This info is as per CoreLogic’s data. However, there’s a 1.6%-drop in the past three months to July 2020.
Tim Lawless, the head of research in CoreLogic, stated that buyer incentives and low housing stock helped in protecting the housing market throughout COVID-19.
As per Lawless, promoted supply levels stayed tight, having the total count of assets for sale dropped 4.3% in the four weeks to July 27. The status was 15.2% under where the level was at last year.
Lawless also said that the amplified demand from housing specific incentives from state and federal governments became more substantial.