Research by RP Data published this week, identifies Australias most expensive suburb as being Peppermint Grove in WA. Statistics reveal that the median house price of a house in Pepermint Grove is a modest $4.6 million – $1 million more than the Sydney suburb of Vaucluse, which comes in a close second.
According to RP Data, there are currently 212 suburbs with a median house price greater than $1 million – a 35% increase in numbers in just a single year.
RP Data is not expecting these figures to show much growth during 2011. There is expectation that Australian Property market conditions will be more subdued than in prior years. Consumer confidence will be affected by the prospect of higher interest rates, more difficult lending conditions in the aftermath of the GFC, and overall global economic uncertainty.
These conditions are likely to affect buyer confidence and reduce the number of buyers looking to spend over $1 million on property purchases.
Some of the suburbs included on the ‘most expensive list’ are:
• Vaucluse, NSW with a median house price of $3.6 million
• Bellevue Hill, NSW with a median house price of $3.4 million
• Dalkeith, WA with a median house price of $2.8 million
• Dover Heights, NSW with a median house price of $2.7 million
With the reported increase in the values of properties across all parts of Australia, median home loans have also increased in value.
There has not been an equivalent increase in borrower incomes. Consequently a large number of borrowers including first home buyers are struggling in keeping up with their home loan repayments. Many are looking around for cheaper home loan deals.