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

While last year ended very differently to how it started in property markets across the country, there was still close to $382 billion worth of home sales, new figures show

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

That said, there were still more than 400,000 home sales throughout the year.

And there were a handful of suburbs where the total value of dwellings sold exceeded a staggering $1 billion.

The suburb with the highest total value of home sales across the capital cities was Sydney’s Mosman, where $1.65 billion worth of properties changed hands through the calendar year.

Although, that’s down 27% on the total value of dwellings that changed hands in the 2021 calendar year, which was exceptionally strong.

Mosman in Sydney saw a staggering $1.64 billion worth of transactions. Picture: Getty

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Brighton in Melbourne came in second with $1.41 billion worth of transactions, although that’s down 15%.

The suburb with the highest total value of home sales across regional areas was Surfers Paradise on the Gold Coast, where $1.10 billion worth of properties changed hands.

That’s a 27% decline from the total value of sales in 2021.

The Gold Coast boomed during the Covid period as many buyers sought lifestyle and space, seeing strong population flows into southeast Queensland.

Metro suburbs with the highest total value of sales in 2022

Across the capital cities, looking at the annual percent change in the total value of sales, the regions that recorded the largest increases were predominantly Adelaide and Perth suburbs.

The relative affordability of these city markets meant they remained buoyant through most of the past year.

The outperformance of more affordable capital cities and regions, and the less expensive peripheral parts of Sydney and Melbourne, is clear.

Regional suburbs with the highest total value of sales in 2022

South Australia, in particular the metro Adelaide area, had a standout year in terms of price growth and buyer demand.

In terms of home price growth, Adelaide was the strongest performing capital in 2022.

Looking at the total value of sales in the city, the suburbs of Bowden and Taperoo saw the total value of property changing hands more than double year-on-year, with both value and volume of sales increasing.

Several suburbs in Ipswich in Queensland, a comparatively affordable city to the west if Brisbane, also saw a large uptick in the total value of properties sold in 2022 compared to 2021.

A snapshot of the market in 2022

While almost $382 billion worth of properties changed hands across more than 400,000 sales, this is a step down from a record-breaking year in 2021.

The pandemic housing boom has reversed course due to mortgage affordability worsening as interest rates rose at a fast pace.

The combination of those sharp rate rises and expectations of continued home price falls dented sentiment and weighed on buyer demand, contributing to slowing selling activity.

With activity moderating, sales volumes nationally were 17% lower over the 2022 calendar year, compared with the previous year.

However, they remained 17% above levels recorded in 2020 and 31% above the number of sales recorded in the 2019 calendar year.

Across the capital cities, the more affordable markets of Perth and Darwin bucked the trend and saw sales volumes increasing compared to 2021.

Sydney, Melbourne, and Brisbane recorded the largest falls in transaction volumes.

National home prices fell through the bulk of the year after peaking in March, declining by a further 0.21% in December to now sit 4.25% below their peak.

Home prices have now begun to fall in every capital city market, although Sydney, Melbourne, and Canberra have fallen furthest from their respective peaks.

There was more than $1 billion worth of property transactions in Surfers Paradise. Picture: Getty

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What will 2023 hold?

This year is set to begin the way the past year ended, and home values are likely to continue to fall as the significant reduction in borrowing capacities weighs on prices.

But the downward pressure from rate rises will be countered to a degree by positive demand effects that stem from tight rental markets and associated price pressures, rebounding foreign migration, stronger wages growth, and, over the long run, housing supply pressures.

And if the Reserve Bank hits pause on their tightening cycle in the first half of this year, price falls are likely to ease after that as uncertainty reduces.

*This post was originally published on https://www.realestate.com.au/insights/australias-billion-dollar-property-suburbs-where-homebuyers-have-spent-up-big/