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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