Suburbs where properties make more per year than their owner's annual income

By Emily Ng

Is your property earning more than you? For Australians with homes in these suburbs, the answer is yes.

Analysing our own internal data, as well as data from CoreLogic and the Australian Bureau of Statistics, we’ve been able to pinpoint which suburbs around the country have properties that make more than their owner’s annual income.

 
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Suburbs where house price growth has exceeded household income 

Suburb Annual property growth ($)  Annual household income  How much more homes earned
Surfers Paradise, QLD $230,000 $59,072 $170,928
Epping, NSW $265,000 $102,596 $162,404
Leichhardt, NSW $278,000 $117,312 $160,688
Willoughby, NSW $292,000 $132,496 $159,504
Highett, VIC $232,000 $83,876 $148,124
Roseville, NSW $295,000 $147,264  $147,736
Stanmore, NSW $260,000 $113,308 $146,692
Paddington, NSW $275,000 $130,468 $144,532

Source: OpenAgent, CoreLogic and ABS

Unsurprisingly, suburbs in Sydney and Melbourne dominated the list for both houses and units. In these property markets, prices have experienced high growth over the last few years coupled with stagnant wage growth.  

An exception has been the coastal suburb of Surfers Paradise in Queensland where houses have been one of the biggest earners relative to salary, with homes making over three times more than their owners. 

The median house price in Surfers Paradise, which is located on the Gold Coast has gone up $230,000 year-on-year compared to the median household income of $50,072. This means property gains exceeded income by over $170,000. 

The median house price in Surfers Paradise has gone up $230,000 year-on-year compared to the median household income of $50,072. 

Looking at NSW, Epping a suburb in Sydney’s north is also high on the list, with median house prices jumping $265,000 in 12 months. 

With Epping households earning an average of $102,596 annually, houses outstrip their owners’ income by a whopping $162,404. 

Sydney’s Inner West suburb of Leichhardt as well as the Lower North Shore suburb of Willoughby also have significant price gaps, with houses in those areas eclipsing income by around $160,000. 

Suburbs where unit price frowth has exceeded household income 

Suburb Annual property growth ($)  Annual household income  How much more homes earned
Fairlight, NSW $198,000 $136,240 $61,760
Kensington, NSW $132,500 $85,592 $46,908
Leichhardt, NSW $158,000 $117,312 $40,688
Maidstone, VIC $103,000 $75,764 $27,236
Coogee, NSW $150,250 $124,592 $25,658
Marsfield, NSW $92,000 $85,332  $6,668
Queanbeyan East, NSW $75,500 $69,056 $6,444
Ivanhoe, NSW $102,500 $99,528 $2,972

Source: OpenAgent, CoreLogic and ABS

For units, while property gains are less than that of houses, many suburbs still exceeded annual incomes.

Fairlight, which is around 13 kms north-east of Sydney’s CBD is one of the higher earners when it comes to units.

With property growth of around $198,000 and an annual household salary of $136,240 means that unit gains are over $60,000 more.

According to OpenAgent Data Analyst Carson Teh, these suburbs share a commonality. The majority of these properties exceed the combined capital city median house price quite significantly. For some, even three or four times.

“A large percentage of properties on this list have a median sale price over $1.5m, which is substantially higher than the median combined capital house price of $672,873 or unit price of $564,648,” he said.

The occupation of residents is also a contributing factor with the majority being professionals according to the latest census.

While soaring property gains is great news for homeowners and investors, if price growth continues to outpace wage growth, it becomes increasingly difficult for buyers to purchase in certain suburbs.

 

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