At the end of 2013 there were 275 suburbs nationally which had a median house value of more than $1 million and just 8 suburbs had a median unit value of more than $1 million.
In last week’s Property Pulse we highlighted that just 12.4% of all capital city houses and 1.7% of regional houses sold in 2013, transacted for more than $1 million.
For units, we reported that 4.6% of capital city sales and 2.3% of regional unit sales had a $1 million price tag. The data highlighted that despite such significant attention in the media for homes over $1 million they account for only a small portion of the overall sales within the market.
This week we look specifically at the suburbs where the typical home value (based on an analysis of RP Data weekly automated valuation estimates for all dwellings across the country) at the end of 2013 was in excess of $1 million.
At a national level, RP Data has recorded that 275 suburbs nationally, or 6.1% of suburbs with a reported median value, have a median value which is greater than or equal to $1 million.
Nationally, only 8 suburbs have a median unit value which is greater than $1 million, representing 0.4% of all suburbs.
The figures vary somewhat once you look exclusively at the capital city markets. Of course, it is important to remember that home values tend to be much higher in the capital cities and this is where the bulk of the national population resides.
For houses, there are 271 suburbs or 12.0% of all suburbs that have a median value of more than $1 million. For units, 0.6% or 8 suburbs have a median value of more than $1 million.
Of course, across individual cities the current results are also quite different.
For houses, almost 1 in every 4 Sydney suburbs has a median house value of more than $1 million, in Perth the figure is 12% of suburbs and in Melbourne around 1 in 10 suburbs has a median value of more than $1 million.
Across each other capital city the proportion of suburbs with a median value of more than $1 million is quite small.
Very few suburbs have a median unit value of more than $1 million, only 8 suburbs nationally. 7 of these 8 suburbs are in Sydney with the remaining one in Brisbane.
If we look back five years ago, 5.1% of suburbs nationally had a median house value which was more than $1 million. For units, 0.4% of all suburbs nationally had a median value which was more than $1 million.
Over the past five years there has been little change in the proportion of suburbs with a median unit value of more than $1 million but a full 1 percentage point increase in the proportion of suburbs where houses have a median value of more than $1 million.
The overall supply of suburbs that have median values in excess of $1 million is quite small however, as home values have trended higher over the past five years so too have the number of suburbs.
With low mortgage rates and relatively high levels of buyer demand we would expect the proportion of suburbs with a median value of more than $1 million to trend higher throughout 2014.
It is important to note that outside of Sydney, Melbourne and Perth suburbs with a median value of more than $1 million are a rarity.
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