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Over 200 markets now in the million dollar property club

With property markets running hot across the country, a new report has highlighted that there are now 218 million-dollar areas across Australia.

The report from CoreLogic titled the โ€˜Million Dollar Markets reportโ€™, 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 shows that house price growth has been happening nationwide over the past 12 months and comes at a time when many experts had been predicting dramatic falls in values.

Eliza Owen, CoreLogicโ€™s Head of Research Australia, said Sydney is still the highest priced market in the country and also had the most markets joining the million dollar club.

โ€œAustraliaโ€™s current housing boom has led to property value increases ranging from 5 per cent across greater Melbourne dwellings to a 20.3 per cent rise in values across Darwin, pushing a more vast range of markets up to, and beyond, the million dollar mark,โ€ Ms Owen said.

โ€œIn 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 per cent) 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.โ€

While homeowners and investors are cheering on the price gains, Ms Owen noted the data suggests first homebuyers are still facing a number of challenges to enter the market.

โ€œFor 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 home ownership and affordability.

โ€œThe 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,โ€ Ms Owen said.

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