Six hundred and thirteen suburbs (see attached list) in Australia now boast a median value of at least $1million, up by 29 per cent over the year according to research by CoreLogic to June 2016.
Houses, with 570 suburbs listed (93%), dominated the million dollar median group while the remaining 43 (7%) were for units.
We noted a significant rise in suburbs with a median value of at least $1 million over recent years.
In fact, the number of suburbs has increased by 125% over the past 3 years.
Tasmania was the only state in Australia where no suburbs reached a median value of at least $1 million.
In New South Wales, the proportion of suburbs with a median value of at least $1 million has increased over time from 59.7% of national suburbs in 2008 to 68
.2% in both 2015 and 2016.
Victoria also increased its proportion of million dollar suburbs from 13.6% in 2008 to 16.6% in 2016.
Queensland and Western Australia experienced a large decline in the proportions of suburbs with a median value of at least $1 million between 2008 and 2016.
The data highlights the bracket creep that has occurred over the housing growth cycle, and how housing affordability in NSW (Sydney) and to a lesser degree Vic (Melbourne) has deteriorated.
An increasing number of suburbs in these two states now have a median value of at least $1 million.
As shown in the chart below, the top 25 suburbs achieving the highest median values are those located in prime locations such as Sydney’s waterfront and the inner-city suburbs.
Toorak with a number 9 ranking and Peppermint Grove ranked number 17, are the only two suburbs shown that are not located in Sydney.
For units, Sydney’s Dawes Point is the only suburb to make into the list of top 25.
Outside of NSW, Vic and WA, the most expensive Qld suburb is Tenerife with a median house value of $1,644,643, SA most expensive suburb is Springfield with a median house value of $1,737,499, NT most expensive suburb is Larrakeyah with a median house value of $1,196,987 and ACT most expensive suburb is Forrest with a median value of $2,067,813 for houses.
While overall housing demand may be slowing a little, we expect that with historic low interest rates, demand for premium housing is set to remain buoyant over the coming year.
Subsequently we would expect in 12 months’ time even more suburbs to have a median value of at least $1 million.