Australia’s Property Market is Undergoing a Surprising Shift

Propertyology has found a surprising trend in Australia’s property market: seven out of the ten most expensive cities have populations under 100,000. This challenges the idea that property values are highest in big cities.

Top Performers in Property Prices?

Among the ten cities with the highest median house prices, only the Gold Coast, Sunshine Coast, and Sydney have populations over 100,000. Sydney, with 5.4 million residents, is the only state capital on this list, showing its unique position in the market.

Bowral, a small inland city in New South Wales with just 10,700 residents, ranks sixth nationwide with a median house price of $1.14 million. This shows that even smaller cities can have property values comparable to much larger urban areas.

Byron Bay has the highest median house price in the country at $1,545,000, despite having a smaller population than 71 other Australian cities. This highlights Byron's unique appeal and strong demand.

Additionally, Hobart stands out as the only capital city with the highest median house price in its state, indicating its exceptional growth over the past two decades.

Regional Areas Leading the Market?

Several regional areas are emerging as leaders in the property market, including:

• Surf Coast, Victoria: Home to Torquay and Lorne.
• Adelaide Hills, South Australia: Includes Bridgewater and Hahndorf.
• Noosa, Queensland, and Busselton, Western Australia: Leading their respective states.
• Kiama, just 120 km south of Sydney, ranks as Australia’s second most expensive city.
• Yass Valley, with a median house price of $890,000, surpasses six out of eight capital cities despite its inland location.

Affordable Alternatives Still Available?

Despite high prices in some areas, there are still affordable options in Australia’s property market. A low-maintenance home could be priced around $750,000.

Townsville offers exceptional value with a median house price of $450,000. It’s considered the best value on a dollar-per-capita basis in the country.

Queensland provides many affordable lifestyle options, from Toowoomba, known as the Garden City, to the tropical paradise of Cairns. Other affordable regions include Cessnock in NSW’s Hunter Valley and Mildura in Victoria, famous for their wineries and dining.

Investor Warnings?

Despite these opportunities, investors are advised against buying apartments due to their historically poor capital growth rates over the last two decades.

Conclusion?

Recent insights from Propertyology reveal that Australia's property market is diverse, with small cities and regional areas gaining prominence. High-value properties are cropping up in unexpected places, but affordable options still exist beyond major cities. Investors should be cautious about apartments due to their low capital growth rates.?

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