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Almost 100 Suburbs Slip Off Million-Dollar List As Property Prices Continue To Drop

Almost 100 suburbs around Australia have dropped off the million-dollar list in the last year, with price drops seeing losses in property value of over 30 percent in some areas.

The total of million-dollar suburbs in Australia has fallen from 741 in January 2018 to 649 as of the same month in 2019.

The criteria for a 'million-dollar suburb' is calculated by the median prices of houses or units in particular areas.

A report released by property data analysts CoreLogic reveals the alarming drop in house prices, with NSW feeling the pinch the most with five of the top ten drops.

"The decline in million dollar suburbs over the year occurred across houses and units.  602 suburbs nationally have a median house value of at least $1 million currently which is down from 669 suburbs a year ago," Core Logic's Cameron Kusher said.

NSW has seen five of the biggest drops in housing prices. (Image AAP)

Of the remaining top 10 biggest price falls, three are in Victoria and one each are in Queensland and WA.

Top 10 Biggest Drops In Price  

  1. Box Hill (NSW): 41.30 percent
  2. Agnes Banks (NSW): 39.40 percent
  3. Red Hill (VIC): 32.50 percent
  4. Barragup (WA): 31.10 percent
  5. Liberty Grove (NSW): 25.70 percent
  6. Gumdale (QLD): 24.50 percent
  7. Mulgoa (NSW): 23.20 percent
  8. North Ryde (NSW):  21.70 percent
  9. Blackburn South (VIC): 20.10 percent
  10. Clayton (VIC): 19.20 percent

(The price drop in North Ryde is for units while all other figures are for houses). 

The area to see the biggest drop in prices around the country is the suburb of Box Hill in Sydney's north-west.

An oversupply of houses is one of the factors behind the prices being slashed, according to Raine&Horne real estate agent, Raza Khan.

"Buyers are sort of spoiled for choice and Box Hill is the sort of area where it established itself as a residential area in the height of the boom that we had,” Khan told 10 daily.

IMAGE: CoreLogic

Khan said there are a number of factors behind the drop, not least of which is Australia's banks becoming more discerning with their lending to buyers.

READ MORE: Property Prices Have Dipped But The Market Still Favours Rich Investors

READ MORE: You Might Finally Be Able To Buy A House In 2019 As Prices Plummet

"The main catalyst is banks have tightened lending; buyers don’t have that luxury or don’t have that funding to go and buy,” Khan said.

Banks are now making it harder for buyers to secure loans (Image AAP)

Another problem is, quite simply, there are too many houses at this point compared to other areas which are better supplied.

The bright side for those hoping for prices to jump again is that once infrastructure such as Sydney Metro stations in nearby Bella Vista and Rouse Hill are put in place, prices will start to rise again, according to Khan.

But not everyone is as optimistic.

"With credit conditions looking set to remain tight and value declines currently fastest for the most expensive properties, it is expected that in 12 months time the number of million dollar suburbs nationwide will have reduced further,"  Kusher said.

Feature Image: AAP

Contact the author: mgay@networkten.com.au