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Aussie suburbs where properties are earning more than their owners

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key takeaways

Key takeaways

Australia’s national property prices reached a new peak in March, having lifted for 14 consecutive months in a row.

The latest data shows that property prices have increased 1.57% so far this year to sit 6.79% above March 2023 levels.

In almost 900 suburbs around the country, property earned more than the average worker in the year to February 2024.

The suburbs with the strongest property value increases were in premium pockets in capital cities, but solid price growth did occur in more affordable areas.

A relatively strong Australian economy, historically low unemployment rates, Federal and State Government spending, initiatives, and infrastructure projects, low levels of stock of properties for sale, historically low vacancy rates and skyrocketing rents, and a return of international demand for Australian property all contribute to strong property prices.

Australia’s national property prices reached a new peak in March, having lifted for 14 consecutive months in a row.

The latest PropTrack data shows property prices have increased 1.57% so far this year to sit 6.79% above March 2023 levels.

Compared to that 6.79% property price growth, wages grew at a (still impressive) 4.2% over the course of 2023.

This means that for many homeowners, their properties have generated more income than their own salary over the past year.

And as always, not all suburbs are equal.

PropTrack’s new automation valuation model (AVM) revealed the suburbs in each state where the median property price has grown by significantly more than the average wage.

Investment Property

What is the average wage in Australia?

According to the latest ABS data, the gross weekly ordinary time earnings for full-time adults is $1,888.80.

This translates to average annual earnings of $98,218.

Number of suburbs where property earned more than the average worker

So how many suburbs around the country saw property earn more than their owners?

Almost 900 suburbs!

The data shows that just shy of 900 Australian suburbs saw their median property prices grow by more than $98,218 in the year to February 2024.

And remember that the family home is exempt from the capital gains tax, so this value increase actually stretches even further than the average annual wage on a dollar-for-dollar basis.

Unsurprisingly, the suburbs with the strongest property value increases were in premium pockets in capital cities.

It’s just maths – areas with a higher median price, but with the same percentage increase, would see larger dollar value gains.

For example, of the top 100 Australian suburbs where properties saw the greatest annual gains in dollar terms, a whopping 87 were in Sydney – the state with the highest median price.

However, solid price growth did also occur in more affordable areas.

Here’s a rundown of the top 10 suburbs in each state.

Top 10 NSW suburbs where property has earned more than the average worker.

Property prices in New South Wales grew 7.77% over the year to February, according to PropTrack.

And the top earners are all located in Sydney’s most affluent areas, but western suburbs also made the very top of the list.

The eastern suburbs of Bellevue Hill and Vaucluse saw the highest year-on-year growth in property values, with an average increase of more than a million dollars.

Meanwhile, in the inner-west regions, houses in Strathfield and Abbotsford saw year-on-year price growth of $447,417 and $401,327, respectively.

Also out west of the CBD is Oatlands near Parramatta, which earned $312,909 for the year, and West Ryde and nearby Melrose Park which notched up $305,455 and $301,676 in price rises respectively.

Further, down the affordability scale, houses in Condell Park and Wiley Park in Sydney’s southwest still outperformed the average Australian wage, growing by $99,953 and $98,507 respectively.

Here’s the top 10.

Top 10 earners in NSW

Suburb Region AVM 12 months ago Current AVM Change ($)
Bellevue Hill Sydney – Eastern Suburbs $7,917,472 $9,230,311 $1,312,840
Vaucluse Sydney – Eastern Suburbs $7,957,341 $8,980,058 $1,022,717
Dover Heights Sydney – Eastern Suburbs $6,137,873 $6,944,833 $806,960
Rose Bay Sydney – Eastern Suburbs $5,620,247 $6,125,406 $505,159
Strathfield Sydney – Inner West $3,114,452 $3,561,869 $447,417
North Bondi Sydney – Eastern Suburbs $4,083,836 $4,512,973 $429,137
South Coogee Sydney – Eastern Suburbs $3,375,920 $3,802,614 $426,695
Bronte Sydney – Eastern Suburbs $5,034,836 $5,448,932 $414,096
Abbotsford Sydney – Inner West $2,753,167 $3,154,494 $401,327
Clontarf Sydney – Northern Beaches $4,977,224 $5,378,500 $401,276

Source: PropTrack/realestate.com.au

Top 10 VIC suburbs where property has earned more than the average worker

Overall Melbourne property prices grew by a relatively modest 1.33% over the year.

But in the exclusive inner-Melbourne suburbs of Toorak and South Yarra, houses still gained more than the average wage at $237,486 and $136,311 respectively.

Meanwhile, suburbs east of the city in Canterbury, Balwyn and Surrey Hills also saw house values jump by $160,638, $156,400 and $125,312 respectively.

Further east the data was also impressive.

House prices in Wheelers Hill, Park Orchards, Lysterfield and Doncaster East increased $115,706, $103,194, $101,332 and $99,385 respectively over the year, all more than the average Australian wage.

Top 10 earners in Victoria

Suburb Region AVM 12 months ago Current AVM Change ($)
Toorak Melbourne – Inner $4,148,336 $4,385,822 $237,486
Canterbury Melbourne – Inner East $3,121,281 $3,281,919 $160,638
Balwyn Melbourne – Inner East $2,702,699 $2,859,099 $156,400
South Yarra Melbourne – Inner $1,891,053 $2,027,363 $136,311
Surrey Hills Melbourne – Inner East $2,163,709 $2,289,021 $125,312
Mont Albert Melbourne – Inner East $2,077,778 $2,200,017 $122,239
Wheelers Hill Melbourne – South East $1,301,619 $1,417,325 $115,706
Balwyn North Melbourne – Inner East $2,102,890 $2,214,560 $111,670
Middle Park Melbourne – Inner $2,682,799 $2,790,123 $107,325
Park Orchards Melbourne – Outer East $1,900,536 $2,003,730 $103,194

Source: PropTrack/realestate.com.au

Top 10 QLD suburbs where property has earned more than the average worker.

Properties on the Gold Coast have been the strongest performers over the year to February.

Houses in Surfers Paradise, Mermaid Beach, Palm Beach and Coolangatta made the top 10 for the state after earning $321,410, $278,103, $275,816 and $260,040 over the year, respectively.

Brisbane, which recorded an impressive 12.16% price growth over the year, also has suburbs with top-performing houses, mostly in inner-city pockets of Clayfield, Hawthorne and East Brisbane, where houses grew by $236,126, $232,384 and $226,221 respectively.

Further out in the southwestern riverside suburb of Mount Ommaney, houses still earned $98,841.

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