Despite a tumultuous 12 months for the Australian property market, from COVID-induced dips to new record high peaks, CoreLogic’s inaugural Million Dollar Markets report released today has identified 218 markets where either house or unit median values in a suburb reached the million-dollar-mark in May 2021 compared to May 2020.
The report also highlights how the current housing market upswing has happened nationwide, with each capital city market and the ‘rest of state’ region recording an increase in values over the last 12 months.
Eliza Owen, CoreLogic’s Head of Research Australia, says “Australia’s current housing boom has led to property value increases ranging from 5.0% across greater Melbourne dwellings to a 20.3% rise in values across Darwin, pushing a more vast range of markets up to, and beyond, the million-dollar mark.
“In the last 12 months 218 markets joined the million-dollar club; 198 of which were house markets and 20 unit markets. A quarter of the markets (24.8%) that ticked over the million-dollar-median were in Sydney, with 54 suburbs seeing either house or unit median values in a suburb join the million-dollar club,” says Ms. Owen.
While there are upsides to the current market boom in terms of wealth accumulation for home owners, Ms Owen flags there are also downsides to consider.
“For first home buyers, who tend to be more price-sensitive, higher house prices and the volume of suburbs becoming million-dollar markets are likely building on the challenges already faced by these prospective buyers around homeownership and affordability. The latest ABS finance data reinforced this, showing April marked the third consecutive month of decline in finance secured for the purchase of property by first home buyers,” says Ms. Owen.
Million Dollar Markets Report – Highlights by State/Territory
New South Wales
· In Sydney there are 340 house and 79 unit markets with a current median value of $1m or higher at May 2021; 25.4% more than one year earlier. In Regional NSW, 55 suburbs (53 houses and 2 units) have a median value of ≥$1m; 267% higher than a year ago.
· Over the year to March 2021, around 40% of sales across Sydney sold for at least $1m.
· Bellevue Hill houses in Sydney’s eastern suburbs were the most expensive market, with a current median house value of $7,616,288. Byron Bay houses are NSW’s most expensive regional market with a median value of $2,343,546.
· In terms of million-dollar newcomers, houses in North Avoca on the Central Coast have deemed Sydney’s strongest newcomer with a median value now at $1,466,568 (up from $991,507 a year ago). In Regional NSW, houses in Lennox Head in the Richmond-Tweed region top the newcomers with a median value at $1,402,024 (up from $990,798).
· In Melbourne there are 184 house and 8 unit markets with a current median value of $1m and above; 34.3% more than one year earlier. Regional Victoria now has 11 house markets reaching the million-dollar median value list, compared to only four a year ago.
· Over the year to March 2021, over 25% of sales across Melbourne were $1m or more.
· Brighton in Melbourne’s most expensive house market with a median value of $3,316,986. Connewarre came in with the highest median house value across Regional Victoria, with a median of $1,671,374.
· For the newcomers, Mount Macedon now has a median house value of $1,319,881 (up from $961,495 a year ago). Houses in Jan Juc in the Geelong region now have a median value of $1,321,185 (up from $954,495 in May 2020).
· Queensland is the only state where the combined regionals have a similar number of million-dollar suburbs to its capital city. There are 51 suburbs across Brisbane with a median house value of at least $1m, compared to 46 house and unit markets across regional Queensland, driven by the popularity of the Sunshine Coast and Gold Coast.
· Teneriffe is Brisbane’s most expensive house market with a median value of $2,063,937. This is only slightly higher than the highest median house value across regional Queensland, held by Sunshine Beach on the Sunshine Coast at $1,924,577.
· Ashgrove tops Brisbane’s newcomer’s list, with a median house value now at $1,207,524 (up from $969,877). In regional QLD, Buddina on the Sunshine Coast now has a median house value of $1,283,111 (up from $978,041 a year ago).
· In Perth there are 42 house markets with a current median value of $1m or higher at May 2021; 61.5% more than one year earlier.
· Dalkeith is Perth’s most expensive house market, with a median value of $2,832,349. Marmion is Perth’s most expensive newcomer, with a median house value of $1,186,078 (up from $939,620).
· Only one house market across regional WA made the million-dollar club. Yallingup in the Bunbury region boasts a median house value of $1,258,355.
· Adelaide currently has 45 markets with a median house value over $1m, more than double the number from a year earlier.
· Unley Park in the Central & Hills region came in as the most expensive market for houses with a median value in May 2021 of $1,710,279.
· Glen Osmond has the highest median house value of the newcomers at $1,226,501 (up from $985,185 a year ago).
Australian Capital Territory
· The ACT saw 27 markets make the million dollar median house and unit list.
· Griffith has the city’s highest median house value at $2,198,510.
· Hughes has made the biggest splash onto the ACT’s million-dollar club list, with a median house value of $1,363,733 (up from $965,290 a year ago).
· There are two markets across Hobart with a median house value of at least $1m, but no newcomers in the past 12 months. Battery Point is Hobart’s most expensive suburb, with a median house value at $1,336,528.