Home Insights Australia’s billion-dollar property suburbs where buyers have spent up big

Australia’s billion-dollar property suburbs where buyers have spent up big

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Last year ended very differently than how it began in the national real estate market, but there were still $382 billion worth of home sales, new figures show.

Home prices fell in the second half of 2022 as buyer activity cooled on the back of rapidly rising interest rates.

That said, over the course of the year there were more than 400,000 home sales.

And in some suburbs, the total value of homes sold exceeded a staggering $1 billion.

The suburb with the highest total home sales value across the capital is Sydney’s Mosman, with $1.65 billion worth of property changing owners over the course of the calendar year.

However, this is down 27% from the total value of residences changed hands in calendar year 2021, which is very strong.

Sydney’s Mosman hit a staggering $1.64 billion in transaction volume.Photo: Getty

Brighton, Melbourne, was second with $1.41 billion worth of deals, down 15%.

The suburb with the highest total home sales value across the region was Surfers Paradise on the Gold Coast, where $1.1 billion worth of property has changed hands.

This is a 27% decrease from 2021 total sales.

The Gold Coast has seen a massive influx of population to south-east Queensland, with many buyers seeking lifestyle and space during Covid.

Metropolitan Suburbs with Highest Total Sales in 2022

Source: PropTrack
Suburbs Sales in 2022 year-on-year
Mosman NSW $1.648 billion -27%
Brighton Vic $1.418 billion -15%
cubic $1.045 billion -2%
Glenn Waverly Vic $967 million -13%
Castle Hill NSW $932 million -twenty one%
Toorak Vic $892 million -twenty one%
Waverly Mt Vic $883 million -11%
St Ives NSW $882 million -8%
Randwick NSW $869 million -30%
Manly NSW $842 million -27%

Across the capital, when looking at the annual percent change in total turnover, the regions that recorded the largest increases were primarily Adelaide and the Perth suburbs.

These urban markets have held up well over much of the past year due to their relative affordability.

Affordable capitals and regions, as well as relatively inexpensive surrounding areas such as Sydney and Melbourne, clearly perform better.

Rural suburbs with highest total sales value in 2022

Source: PropTrack
Suburbs Sales in 2022 year-on-year
Surfers Paradise Qld $1.079 billion -27%
Port Macquarie NSW $934 million 2%
Buderim Qld $761 million -11%
Southport Qld $675 million -13%
Hope Island Qld $634 million -30%
Palm Beach Qld $581 million -12%
Maroochydore Qld $579 million -7%
Robina Qld $555 million -Four%
OrangeNSW $506 million -7%
Upper Coomera Qld $503 million 1%

South Australia, particularly the Adelaide metropolitan area, had an outstanding year in terms of rising prices and buyer demand.

Adelaide was the best performing capital city in 2022 when it comes to house price growth.

Looking at total city sales, both the value and volume of sales increased in the Borden Suburb and Taper Districts, with total property values ​​more than doubling year-on-year.

Several suburbs of Ipswich, Queensland, also a relatively affordable city west of Brisbane, saw a significant increase in the value of property sold in 2022 compared to 2021.

Market snapshot for 2022

Approximately $382 billion worth of real estate has achieved more than 400,000 sales, a step down from 2021’s record-breaking year.

The pandemic housing boom has reversed course as interest rates soared, making mortgage affordability worse.

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This sharp rise in interest rates, combined with the expectation that house prices will continue to fall, has contributed to a deterioration in sentiment, weighing on buyer demand and slowing sales activity.

Moderate activity resulted in a 17% decline in national sales volume in calendar year 2022 compared to the previous year.

However, it was 17% above the levels recorded in 2020 and 31% above the sales numbers recorded in the 2019 calendar year.

Across the capital, the more affordable markets in Perth and Darwin bucked the trend, with higher sales volumes compared to 2021.

Sydney, Melbourne and Brisbane recorded the biggest declines in trading volumes.

After peaking in March, domestic house prices fell over the course of the year, dropping another 0.21% in December and are now 4.25% below their peak.

House prices are now starting to fall in all capital markets, although Sydney, Melbourne and Canberra have fallen further from their respective peaks.

Over $1 billion in real estate transactions have taken place in Surfers Paradise.Photo: Getty

What will happen in 2023?

This year is set to start the same as last year, and house prices are likely to continue to fall as significantly lower borrowing capacity weighs on prices.

However, the downward pressure from higher interest rates will be offset to some extent by a tightening rental market and associated price pressures, a rebound in foreign immigration, wage growth and, over the long term, a positive demand effect from housing pressures. .

And if the Reserve Bank suspends its tightening cycle in the first half of this year, then the price decline could ease as uncertainty falls.

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