More Adelaide homeowners are now millionaires – at least in terms of assets, with new research revealing a 42 per cent jump in the number of million dollar suburbs in the past year.
New market data released by CoreLogic shows there were 27 suburbs with a median dwelling value of at least $1 million in January, this year – up from just two suburbs in 2009 and eight in 2018.
The state’s richest postcode, Unley Park, topped the list, boasting a median house price of $1,468,607 million.
Leabrook followed in close second with a median house price of $1,429,697 million, while Toorak Gardens ($1,424,786), Rose Park ($1,419,076) and Tusmore ($1,283,954) rounded out the top five.
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In terms of top performing council areas, Burnside topped the list with 13 of its suburbs making the cut, including new editions Auldana, Glenunga and St Georges.
CoreLogic senior research analyst Cameron Kusher said he attributed the growth to strong market demand for luxury properties.
“The market has been quite strong and counterintuitive to what we see happening in other areas of the country, such and Melbourne and Sydney where million dollar suburbs are dropping,” he said.
“In Adelaide and SA, suburbs tend to be quite small. So if you have a lot of willing buyers but not enough sellers, that’s pushing up the market, too.
“That said, I don’t think we’ll necessarily see similar growth in the future due to credit restrictions which, while they affect everyone, especially impact buyers on the top end of the market.”
According to CoreLogic data, the top verified sale of 2018 was 68 Battams Rd, Marden, which sold off-market for $5.3 million.
16 Northgate St, Unley Park was the state’s second-highest selling property, selling also off-market for $5.2 million.
A four-bedroom family home at 21 Whistler Ave, Unley Park was the third-highest sale of the past year, selling for $5.1 million through Jamie Brown of Bernard Booth Real Estate.
Mr Brown said the Marden sale, which he was not involved in, was a ‘game-changer’ for the market.
“That sale has changed the whole complexity of the top end,” Mr Brown said.
“That will make everyone sit up and listen, and it gives buyers emotional and financial comfort to put in an offer at $6 million or $6.5 million for something that might have been seen in the high fives before.”
Mr Brown said Adelaide’s million dollar club would see further additions in the years ahead.
“I think the list will expand but not the same ways as it has over past year,” he said.
“Unquestionably we’ll see more growth along the coast as there’s limited stock between Hove and Semaphore.
“There’s not a lot of opportunities to build and, in 10 years’ time, there’ll be even less, which will and is already driving up prices.”
Stephanie Williams of Harcourts Williams said 2018 had been an exceptional year for luxury property sales and predicts much the same for the year ahead.
“All those premium suburbs are selling extremely well, so I’m not surprised with the result,” she said.
“I think that list will continue to grow as we see more neighbouring areas turn into million dollar suburbs in the next two to three years.
“Suburbs like Kingswood and Hawthorne which are already performing really strongly and are close to amenities, good schools and Unley Park.”
Adelaide’s million dollar suburbs
* indicates the nine suburbs new to the list
1. Unley Park
Median value: $1,468,607
Median value: $1,429,697
3. Toorak Gardens
Median value: $1,424,786
4. Rose Park
Median value: $1,419,076
Median value: $1,283,954
Median value: $1,275,597
7. College Park
Median value: $1,246,583
8. St Peters
Median value: $1,237,679
9. Hyde Park
Median value: $1,228,321
Median value: $1,212,027
Median value: $1,116,143
Median value: $1,115,268
Median value: $1,114,906
Median value: $1,098,954
Median value: $1,095,196
16. St Georges*
Median value: $1,088,885
Median value: $1,082,541
Median value: $1,079,422
19. Glen Osmond*
Median value: $1,060,371
Median value: $1,059,610
Median value: $1,033,864
Median value: $1,021,643
23. Hazelwood Park*
Median value: $1,014,573
24. Kensington Park*
Median value: $1,013,215
Median value: $1,012,643
26. Glenelg South*
Median value: $1,010,512
Median value: $1,006,093