Australia’s most expensive suburbs in 2015
In the last few of years, most of the land has been changed from a rural zoning to a residential and high density zoning to accommodate urban development, which will bring an estimated 9,600 new homes and around 30,000 new residents to the area.
“In 2012 the state government earmarked Box Hill as the next release area… there’s up to 4-hectare lots,” Keen says.
“Developers are purchasing 33 10-hectare properties at a time. We’re seeing acquisitions from as little as two to 333 hectares.”
Keen says the rezoning for long-term development has increased the value of land in the Box Hill dramatically.
“Once upon a time when you looked at a place like Box Hill, for the median price of those other suburbs (in the Top 10 most expensive list) you could get a bigger place on a bit of land,” he says.
“Now that doesn’t happen because they’ve rezoned it and the prices have jumped up quite substantially.
“As soon as the state government makes these decisions to rezone an area, it’s a serious windfall for vendors.”
It’s the start of an entirely new suburb.
Neighbouring town centre at Rouse Hill will have an operating train line on the North West Rail link by 2017, another factor driving the price up.
Interestingly, Keen says many of the properties are being snapped up by cashed-up local buyers.
“There’s a bit of a belief here that ‘he who holds the most land becomes the greatest beneficiary’,” he says.
“We’re seeing a surge of interest, not only from long-term big developers but cashed-up locals who have sold land in other areas and are looking to stay on the wave.”
So, will the investment pay off in the long run?
“I see good steady, continued growth. In many ways we’re really only at the beginning of the development curve. Basically it’s the start of an entirely new suburb.
“Once the building commences, we’ll probably see another really strong growth period and good steady growth in between.”
Video: Melbourne’s property year in review
In what will come as a surprise to no one, the tightly held suburbs on Sydney’s eastern peninsula – with their glittering mansions and captivating views – have held their position in the Top 10 of Australia’s most expensive list.
Elliot Placks, Director of Ray White Double Bay, doesn’t see that changing anytime soon.
“You’ve got a growing population and nowhere to stretch beyond the eastern suburbs, because you’re bound by the harbour on one side and the ocean on the other,” Placks says.
“In the east in particular, each property is different, because it’s very hilly, so you’ve got different aspects, different views, different styles of properties.
“That coupled with low interest rates all year has fueled price growth.”
The size, quality and lifestyle that can be offered to an individual if they’ve got the capacity is astounding
Placks says Chinese buyers have been a strong driving force behind the top end market in Sydney’s east.
“Around 30% of the top end eastern Sydney market are Chinese buyers. Five or six years ago it was significantly less, around 5%. Other than that it’s locals that have done well in business or mining, doctors and other professionals.
“The size, quality and lifestyle that can be offered to an individual if they’ve got the capacity is astounding.”
1. Darling Point, NSW – $5,651,000
2. Box Hill, NSW – $3,953,500
3. Bellevue Hill, NSW – $3,950,000
4. Vaucluse, NSW – $3,675,000
5. Toorak, VIC – $3,400,000
6. Tamarama, NSW – $3,250,000
7. Double Bay, NSW – $3,175,000
8. Dover Heights, NSW – $3,100,100
9. McMahons Point, NSW – $3,051,000
10. Longueville, NSW – $2,960,000