Almost a third of suburbs have an average $1m price tag
New research from CoreLogic and the ABS shows almost a third of Australian suburbs have an average $1m price tag - and the country's household property portfolio has reached a record $16.5 trillion.
THE findings show the number of Australian suburbs with a median house or unit value in the million-dollar category reaching record levels.
Of the 4,772 suburbs analysed by CoreLogic, 29.3 per cent were at or above the $1 million dollar mark.
It follows a dip at the start of the rate-tightening cycle in January 2023 when 21.7 per cent of suburbs sat at that price bracket.
“At the onset of COVID, just 14.3 per cent of house and unit markets had a median value at or above the $1 million mark,” said CoreLogic economist Kaytlin Ezzy.
“With almost 30 per cent of suburbs now posting a seven-figure median, the increase is a natural consequence of rising values and worsening affordability,” she explained.
The across-the-board property price rise is also highlighted in data released by the Australian Bureau of Statistics, which revealed household wealth stands at a record $16.5 trillion.
That’s 9.3 per cent higher than a year ago.
“House prices have continued to rise across most states and territories, despite high interest rates,” according to Dr Mish Tan, head of finance statistics at the ABS.
This largely reflects ongoing housing supply constraints and an uptick in investor activity over the quarter.”
According to the CoreLogic report, Sydney recorded the highest net rise in million-dollar markets over the year, with dwelling values rising 5 per cent and 46 new suburbs entering the million-dollar category.
Brisbane saw an increase of 46 million-dollar markets, with dwelling values rising 15 per cent over the year.
“The positive flow of interstate migration, coupled with a continued undersupply of advertised listings as well as newly built housing stock, has seen Brisbane values rise 65.1 per cent since the onset of COVID,” Ezzy said.
Significant increases across Brisbane have “eroded much of the city’s previous affordability advantage”, according to the economist.
Perth placed the third highest with 35 new suburbs in the million-dollar category, alongside one re-entrant to the million-dollar club over the year.
On the opposite end of the spectrum were Melbourne and regional Victoria, where dwelling values dropped by 1 per cent over the year.
Melbourne recorded only four new suburbs in the million-dollar category, alongside seven re-entrants and three markets falling below a median value of $1 million.
Notably, regional Victoria was found to be the only broad region among the capitals and rest of state regions to record a net decline of million-dollar markets with the previous 12 million-dollar suburbs decreasing to 10 over the year.
“An unfavourable investment taxation environment, a higher level of new housing completions, and an above average level of advertised supply have put downwards pressure on values, resulting in fewer new million-dollar entrants in Melbourne and a net decline across regional Victoria.”
