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 ‘Million Dollar Markets report’, 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, CoreLogic’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.

“Australia’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,” Ms Owen said.

“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 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.”

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.

“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 home ownership 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,” Ms Owen said.

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