One-third of all Australian properties now command a $1 million-plus price tag, according to the latest research from Cotality.
Its latest data shows the number of so-called “million-dollar suburbs” has risen by an astounding 143% in five years.
The city with the most influence on this result is Brisbane, where 38 suburbs have moved into this once-elite category.
Cotality says Australia now has 4,844 markets (3,514 houses and 1,330 units) in the million-dollar club, having evaluated sales figures from September.
Some 154 suburbs are new members of the club, and 41 have returned. Eleven areas lost their million-dollar mantle.
In September, 34.1% suburbs recorded a median house or apartment value of $1 million or more. That’s up from 30.3% just 12 months ago.
The data indicates how property continues to be an outstanding investment for Australians.
However, there is a cautionary note. Affordability is becoming increasingly stretched. Cotality noted it would take more than 50% of an average, pre-tax household income ($106,000) to meet the repayments on a $1 million mortgage that had a 20% deposit paid.
Its report says: “Five years ago, just 14% of suburbs were members of the million-dollar club, with the majority concentrated in Sydney’s prestigious Northern Beaches, Eastern Suburbs, and North Sydney and Hornsby regions.”
Since 2020 and Covid, national values have risen 46.8% ($270,000), increasing the number of million-dollar club members by 142.9%.
In the nation’s most expensive market of Sydney, only 15% of suburbs now fall below the benchmark.
Median house values in Brisbane and Canberra now command seven-figure price tags, joining Sydney and Melbourne.
Cotality observes: “Seven-figure markets are no longer confined to prestigious suburbs, with their reach expanding more broadly.”
“With tight supply levels and additional demand from the expanded Home Guarantee Scheme (for first-time buyers), values are expected to continue an upward trajectory.
“At their current quarterly rate of growth, more than 80 markets are on track to join the million-dollar club by year’s end.”