The NSW markets that have joined the million dollar club
“To get a four-bedroom house in Mittagong now costs well over $ 1 million, and to get into the entry market with a three-bedder is $ 900,000,” Mooney said.
“In the last boom, we were selling houses for $ 340,000 and thinking [there was] no way they could double, then they’ve tripled. ”
However, he noted there had been a shift in recent months. Homes were still selling well, but buyer numbers had pulled back about 40 per cent as the fear of missing out disappeared. Demand could further ease due to the increased cost of living, and rising interest rates, but only time would tell.
In Wollongong, suburbs like Woonona ($ 1,277,500), East Corrimal ($ 1,135,000) and the Wollongong city center ($ 1.04 million) passed the million-dollar median price tag, following suburbs like Thirroul ($ 1.85 million) and Bulli ($ 1,685,000).
“It’s crazy,” said buyer’s agent Jack Corbett, of Corbett Property Buyers, of the region’s price growth.
“One million in the north of Wollongong does not get you a house anymore, it will cost you more like $ 1.3 to $ 1.4 million… but you might get a brand-new town house for around $ 1 million,” he said.
Buyers were increasingly having to compromise on their property wish list, and families were now turning to terraces and townhouses, which he had not seen before.
He was still seeing strong demand from Sydneysiders, despite more people returning to offices. He attributed this to the lifestyle on offer and Wollongong’s proximity to Sydney.
In the state’s north, price growth in the Ballina Shire had been fueled by increased demand from buyers priced out of Byron Bay, said McGrath Ballina sales agent Ben Gatwood. About half of homes during the pandemic had sold to locals, while a quarter sold to former Byron residents, and another quarter to Sydney and Melbourne buyers.
Gatwood said buyers with a $ 1 million budget were likely to pick up an older style three-bedroom cottage in a central part of Ballina, with the town’s median at $ 830,000.
East Ballina ($ 1,175,000) and the town of Cumbalum ($ 1.15 million) both passed the $ 1 million mark over the year, joining Lennox Head ($ 1,562,500), where prices jumped more than $ 500,000. However, it was still more affordable than Byron Bay, where the town median hit $ 2.45 million.
Gatwood said buyer demand and price growth in the region had started to slow towards the end of last year due to affordability constraints.
“So many people were being priced out, you get to a point where you lose a lot of [buyer] volume… [prices couldn’t] keep going at such a rate because that’s when you get to a cliff edge, ”Gatwood said.
The recent floods also had an impact, and new values would be set for affected properties as they hit the market in the coming months. However, he expected to see increased demand for those areas not impacted.
Elsewhere, suburbs across the Lake Macquarie, Newcastle, Shoalhaven and Tweed council areas also surpassed seven figures over the past year, though the council-wide medians remained below $ 1 million.
Caves Beach ($ 1.4 million), Vincentia ($ 1,295,000), Mollymook Beach ($ 1,275,000) and Pottsville ($ 1.25 million) were among such suburbs.